Class B office in Tokyo typically trades 30–60% below Class A on rent, with materially higher vacancy and a much harder lease-up profile.

  • Class A asking: 50000 JPY/sqft; Class B typically 30–60% below.
  • Vacancy gap is structural — Class B carries the long tail.
  • Repricing of Class B is the defining feature of post-2020 office markets.
  • Conversion (residential / mixed-use) is now a real exit for Class B in many Tokyo submarkets.

Tokyo Class A vs Class B office

Class B office in Tokyo typically trades 30–60% below Class A on rent, with materially higher vacancy and a much harder lease-up profile.

TL;DR

  • Class A asking: 50000 JPY/sqft; Class B typically 30–60% below.
  • Vacancy gap is structural — Class B carries the long tail.
  • Repricing of Class B is the defining feature of post-2020 office markets.
  • Conversion (residential / mixed-use) is now a real exit for Class B in many Tokyo submarkets.

Why the spread keeps widening

Flight-to-quality has compounded since 2020. Tenants signing 10-year leases default to certified, amenitised Class A — Class B can't compete on talent attraction or ESG scoring. Tokyo mirrors this global pattern.

Where Class B still wins

Cost-sensitive operations, back-office functions, satellite teams, and budget-constrained scale-ups still find Class B fit-for-purpose. The premium for Class A should always be evaluated against actual ROI, not brand.

Key facts

cityTokyo
countryJapan
regionAPAC
classARentLocal50000 JPY/sqft/yr
classARentUsd$113/sqft/yr
vacancy4.6%
typicalLeaseYears5
typicalRentFreeMonths4
submarkets6
primeYieldPct3%

Frequently asked questions

How much cheaper is Class B than Class A in Tokyo?
Typically 30–60% on rent, with materially higher vacancy and weaker concessions. The gap has widened since 2020.

Editorial provenance

Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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