• Strong corporate performance keepsdemand forofficesolid;netabsorptionfallsslightlyduetolackofstock thisquarter
• Vacancyraterisesq-o-q to0.8%
• Averagemonthly rent pertsubointhesecond quarterwas42,109yen, up4.6% qoq and16.4%y-o-y
Netabsorption inTokyo GradeAofficefellto -5,800tsubosin2Q26.Whileofficedemand continues toremainstrongduetogood corporate performance, therewasnonewsupplythisquarter, whichresultedinnegative netabsorption. Byindustry,demand wasdriven byscientific research,professional andtechnical servicesandmanufacturing.
Tokyo’s vacancy rateintheGradeAofficemarketin2Q26was0.8%,up0.1ppq-o-q, anddown 1.7pp y-o-y. Tightvacancy wasseenduetodelay inthecompletion ofnewsupplycausedbysoaringconstruction costs,withverylimitedavailabilityofvacantspace.
Theaveragemonthly grossrentpertsubowasJPY42,109,up4.6%q-o-q and16.4%y-o-yin2Q26.Bysubmarket,rents increased inboththe Otemachi/MarunouchiandtheAkasaka/Roppongi submarkets,withrentalgrowthparticularlyseeninthe Otemachi/Marunouchisubmarket, supported byitslowvacancy rate.
Capitalvaluesin2Q26rose6.9%q-o-q and21.1%y-o-y, accelerating fromtheprevious quarter,duetostrong momentum inrents andstablecap rates.There werenoGradeAtransactionscompleted thisquarter.
Outlook
Intheofficeleasingmarket,thereisverylimited amountofvacantspaceinexistingbuildingsandprojects scheduled forcompletion inthe second halfof2026arenearlyfullyleasedwithtake-upfornew supplythatwillenter themarketin2027areseeing good progress. Withdelayin projects scheduledfor2029materializingduetorisingconstruction costs,tightsupply-demand conditions arelikelytocontinue inthe foreseeablefuture.Intheinvestment market,furtherrentalincreaseandstablecapratesareexpected toresultintherise ofsaleprices.
Fundamentals(forthis quarter)
Note:Financialandphysical indicatorsareforthe5KusGradeAofficemarket.Datais onanNLAbasis.
Historicalsupplyanddemandtrends
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