Monthly office rent in Tokyo's main business districts 2020-2024

The average monthly office rent per tsubo in Tokyo's central business districts amounted to 19.73 thousand Japanese yen in January 2024. In July 2020, the average rent reached a peak of 23 thousand yen. 

Low office vacancy rates in Japan’s metropolitan areas prior to the pandemic

In the years before the coronavirus pandemic, increasing rents for office space reflected a general downward trend in vacancy rates for office space in Tokyo's central business districts; Chiyoda, Chuo, Minato, Shinjuku, and Shibuya. Similarly, office vacancy rates in Osaka and other major cities in Japan were also declining steadily. Increasing commercial land prices in the metropolitan areas of Tokyo, Osaka, and Nagoya accompanied this development.

Real estate investment in office property

With an increasing demand for office space and rising rents, the office market played a growing role in commercial real estate investment. Office property has been among the leading types of property in the portfolios of Japanese real estate investments trusts (J-REITs) and accounted for around one-third of securitized properties in Japan.