Tokyo
• Furtherincreaseinnetabsorptiondriven bystrong occupier demand
• Vacancyrateremainsunchanged q-o-q at0.7%.
• Rents risefortheninthconsecutive quarter
Netabsorption inTokyo's GradeAoffice marketreached69,000tsuboinQ12026,increasingfrom38,000tsubointheprevious quarter. Demand hasbeen driven byemployees returning toofficesandbusinessexpansion, primarilycentered onmanufacturing, IT,andprofessionalservices sectors.
FournewGradeAofficebuildings,including Tofrom YaesuTower (NLA:31,300tsubo),TakanawaGatewayCityThe Linkpillar2(NLA:26,900 tsubo)andSumitomo FudosanShibaKoen (NLA:6,200tsubo),and Omotesando GridTower (NLA:3,300tsubo)werecompleted inQ12026, increasingtotalstockby3.5%.Tokyo's GradeAofficevacancyrateinQ12026was0.7%,unchanged q-o-q anddown 1.8ppy-o-y.
Theaveragemonthly grossrentpertsubowasJPY40,247,up5.2%q-o-q and13.2%y-o-yinQ12026.CapitalvaluesinQ12026rose5.5%q-o-q and16.4%y-o-y, accelerating fromQ42025,asstrongrentmomentum offsetrisingcaprates.NotableGradeAtransactionsincluded the purchaseofDentsuHQBuildingbyBrookfield for300billionJPY.
Outlook
According toOxfordEconomics' forecastasofMarch2026,projections forrealGDPgrowth in2026werereviseddown to0.3%onthebackofthe conflict intheMiddleEast.InTokyo's GradeAofficeleasingmarket,solidtenant demand continues whiledelaysinnewbuildingcompletions areoccurring duetolaborshortagesandrisingconstruction costs.Withthesupply-demand balancetightening, rentsareexpected tomaintain anupwardtrend going forward.
Fundamentals
Note:Financialandphysical indicatorsareforthe5KusGradeAofficemarket.Datais onanNLAbasis.
Historicalsupplyanddemandtrends
Tsubo(thousands)
Netabsorption Newsupply Vacancyrate
Jones Lang
LaSalle K.K.
Tokyo Headquarters
KioiTower, Tokyo Garden TerraceKioicho
1-3Kioi-cho Chiyoda-ku,
Tokyo 102-0094
+81343611800
Kansai
Nippon Life
YodoyabashiBuilding
3-5-29KitahamaChuo-ku,
Osaka541-0041
+81676628400
Fukuoka
FukuokaDaimyoGardenCity 2-6-50Daimyo, Chuo-ku,Fukuoka-shi
Fukuoka810-0041
+81922336801
Nagoya
JPTowerNagoya 1-1-1Meieki, Nakamura-ku,Nagoya-shi
Aichi450-6321
+81528563357
For more information, please contact
YutoOhigashi
Senior Director
Research-Japan
yuto.ohigashi@jll.com
TomoyoNakamaru
AssistantManager
Research -Japan
tomoyo.nakamaru@jll.com
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