For institutional fund strategies, Marunouchi & Otemachi carries the strongest investor flag in Tokyo, with prime yields around 3%.

  • Trophy submarket (Marunouchi & Otemachi) carries the strongest investor flag.
  • Prime yield: 3%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Tokyo office fund strategy and flag

For institutional fund strategies, Marunouchi & Otemachi carries the strongest investor flag in Tokyo, with prime yields around 3%.

TL;DR

  • Trophy submarket (Marunouchi & Otemachi) carries the strongest investor flag.
  • Prime yield: 3%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Tokyo, that's Marunouchi & Otemachi and assets like Mori JP Tower (Azabudai Hills), Tokyo Torch (Tokiwabashi Tower).

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityTokyo
countryJapan
regionAPAC
classARentLocal50000 JPY/sqft/yr
classARentUsd$113/sqft/yr
vacancy4.6%
typicalLeaseYears5
typicalRentFreeMonths4
submarkets6
primeYieldPct3%
primeYield3%
trophyAnchorMarunouchi & Otemachi

Frequently asked questions

Where do core funds buy in Tokyo?
Trophy submarket — Marunouchi & Otemachi — and the most defensible long-WAULT assets within it.

Editorial provenance

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

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