Tokyo Class A Office Market

TL;DR

• Central five-ward vacancy below 5% — APAC's tightest major market.
• Lease lengths typically 5-7 years, with 2-year notice.
• Reinstatement obligations are large — budget JPY 30-60k/sqm.
• ESG (CASBEE / WELL / leed">LEED) is now standard for new trophy assets.
• Foreign occupiers make up a small but growing share of trophy demand.

Overview

Tokyo's Grade A office market is structurally tight. Vacancy in the central five wards remains below 5%. Mori Building and Mitsubishi Estate continue to deliver large-scale mixed-use trophy projects (Azabudai Hills, Tokyo Torch) that absorb anchor demand from global financial and tech tenants.

Market snapshot

Composite Q1 2026 Tokyo central five-ward Grade A reports.

Lease norms

Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply.

Transit & access

JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.

Tax

Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component.

Talent

The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium.

Notable Class A buildings

• Mori JP Tower (Azabudai Hills) · Azabudai
• Tokyo Torch (Tokiwabashi Tower) · Marunouchi
• Toranomon Hills Station Tower · Toranomon
• Marunouchi Building · Marunouchi

Class A submarkets in Tokyo

• Marunouchi & Otemachi — Mitsubishi Estate's century-old corporate spine. (trophy)
• Azabudai & Roppongi — Mori Building's mixed-use trophy district. (trophy)
• Shibuya — Tokyo's tech and creative-class capital. (prime)
• Shinjuku — Western HQ cluster around the world's busiest station. (prime)
• Shinagawa — Shinkansen-linked HQ corridor south of central Tokyo. (prime)
• Toranomon — Resurgent trophy submarket between Marunouchi and Roppongi. (trophy)

Tokyo deep-dives

• Rents and incentives — What does Class A rent cost and what concessions are typical?
• Sublease market — How deep is sublease">sublease availability and how does it price?
• ESG and LEED stock — How much certified stock exists and what premium does it command?
• Transit and commute — Which submarkets have the strongest transit access?
• Talent and salaries — What does the white-collar talent pool look like and how is it priced?
• Fit-out costs — What does a Class A fit-out">fit-out cost per square foot?
• Flex vs lease — When does premium coworking beat a traditional lease?
• Taxes and incentives — What corporate, occupancy, and property taxes apply?
• Neighborhoods overview — Which Class A submarkets exist and how do they compare?
• Notable buildings — Which trophy assets define the market?
• Class A vs Class B — What is the spread between Class A and Class B and why?
• Leasing conventions — What lease structures, terms, and concessions are normal?
• Expansion checklist — What is the operational checklist for opening here?
• Relocation guide — How do you move into this market from another city?
• Frequently asked questions — Quick answers to the questions occupiers ask most.
• Operating expenses — What service charges, OpEx, and pass-throughs apply on top of rent?
• Growth and availability — How tight is current availability and what does the pipeline look like?
• Sustainability pathways — How do tenants land net-zero or science-based-target leases here?
• Hybrid work policy — How are hybrid policies shaping office demand here?
• Security and redundancy — What security, power, and connectivity redundancy are standard?
• Lab and R&D space — What does R&D-grade or wet-lab space look like in this market?
• Brand experience — How do trophy buildings function as brand experiences and showpieces?
• Fund strategy and flag — Which submarkets carry the strongest investor flag for funds?
• Exit and renewal — How do you handle a Class A renewal or exit cleanly here?
• Market cycle position — Where is this Class A market in its cycle right now?

Tokyo — frequently compared

• Tokyo vs Bangalore — APAC HQ shortlist: Bangalore vs Tokyo.
• Tokyo vs Hong Kong — APAC HQ shortlist: Hong Kong vs Tokyo.
• Tokyo vs Melbourne — APAC HQ shortlist: Melbourne vs Tokyo.
• Tokyo vs Mumbai — APAC HQ shortlist: Mumbai vs Tokyo.
• Tokyo vs Seoul — APAC HQ shortlist: Seoul vs Tokyo.
• Tokyo vs Shanghai — APAC HQ shortlist: Shanghai vs Tokyo.

Frequently asked questions

Are foreign tenants able to lease trophy Tokyo space?

Yes, but landlord onboarding is rigorous. Expect to provide multi-year audited financials, parent guarantees if signing as a Japanese subsidiary, and to engage a local agent.

What is genjo kaifuku?

The contractual obligation to restore the leased premises to original condition at lease-end. For Grade A space this commonly costs JPY 30-60k per square meter. Budget it as a known cost from day one.

What is the difference between fixed-term and ordinary leases?

Fixed-term (teiki shakuya) leases end on the date in the contract — no renewal right. Ordinary (futsu shakuya) leases give the tenant strong renewal rights regardless of landlord preference. Trophy buildings increasingly favor fixed-term.