Frankfurt ($60/sqft, 8.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Frankfurt on talent depth and Tokyo on rent and tax.
Frankfurt ($60/sqft, 8.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Frankfurt on talent depth and Tokyo on rent and tax.
| Metric | Frankfurt | Tokyo |
|---|---|---|
| Region | EMEA | APAC |
| Country | Germany | Japan |
| Class A rent (USD/sqft/yr) | $60 | $113 |
| Class A rent (local) | 55 EUR | 50000 JPY |
| Vacancy | 8.4% | 4.6% |
| Trend | flat | rising |
| Prime yield | 4.4% | 3% |
| Premium flex / seat / month (USD) | $1,080 | $980 |
| Submarkets covered | 6 | 6 |
| Corporate tax | 30% | 30.6% |
| Metric | Frankfurt | Tokyo |
|---|---|---|
| Typical term | 7 yrs | 5 yrs |
| Typical rent-free | 9 mos | 4 mos |
| Lease norms | German leases run 5-10 years with break rights. Rent reviews are indexed to the CPI (Verbraucherpreisindex). Tenant pays Nebenkosten (operating costs) on top of base rent. Cautio (security deposit) of 3-6 months is typical. | 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. |
| Tax note | Combined federal + state + Gewerbesteuer (trade tax) effectively 30% in Frankfurt. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Frankfurt | Tokyo |
|---|---|---|
| Talent index (0–100) | 88 | 84 |
| Talent note | Deepest banking-and-regulatory talent pool in continental Europe. Average all-in compensation indexes 88. | 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. |
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE.
Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Frankfurt is the cheaper Class A market on a USD basis.
Frankfurt has the deeper talent index (88/100 vs 84/100).
Frankfurt has the lower headline corporate tax (30% vs 30.6%). Local incentives can change the effective rate materially.
Frankfurt typical term is 7 years with 9 months free; Tokyo runs 5 years with 4 months free.
Frankfurt: Hauptbahnhof anchors S-Bahn, U-Bahn, ICE, and regional rail. Frankfurt Airport is 11 minutes by ICE. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks.
Score Frankfurt, Tokyo and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.