Tokyo Grade A office rents rise amid high demand

The Grade A office market in Tokyo's five central wards experienced significant rental growth in the third quarter of 2026. According to reports from Cushman & Wakefield and Savills, demand for high-quality space is driving prices upward as companies prioritize location, environmental performance, and employee experience.

Cushman & Wakefield noted that average estimated contract rents for Grade A offices in the five central wards reached 45,139 yen per tsubo, an 18.2% increase year-on-year. Vacancy rates reached a period low of 0.3%. Notable growth was seen in the Kyobashi, Yaesu, and Nihonbashi areas, where rents rose 29.6% annually due to a significant increase in new supply and high absorption rates. The Otemachi and Marunouchi areas also saw substantial increases, with some existing buildings commanding rents in the mid-80,000 yen range.

Savills reported similar trends, stating that average rents in the central wards rose 17.9% year-on-year to 43,467 yen per tsubo. The consultancy highlighted that Chuo ward recorded the strongest rental growth both quarterly and annually. Availability remains particularly tight in Chiyoda, Minato, Shibuya, and Shinjuku, creating upward pressure on rents as occupiers compete for limited modern office space.