London ($121/sqft, 8.6% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: London on talent depth and Tokyo on rent and tax.
London ($121/sqft, 8.6% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: London on talent depth and Tokyo on rent and tax.
| Metric | London | Tokyo |
|---|---|---|
| Region | EMEA | APAC |
| Country | United Kingdom | Japan |
| Class A rent (USD/sqft/yr) | $121 | $113 |
| Class A rent (local) | 95 GBP | 50000 JPY |
| Vacancy | 8.6% | 4.6% |
| Trend | rising | rising |
| Prime yield | 4.5% | 3% |
| Premium flex / seat / month (USD) | $1,380 | $980 |
| Submarkets covered | 7 | 6 |
| Corporate tax | 25% | 30.6% |
| Metric | London | Tokyo |
|---|---|---|
| Typical term | 10 yrs | 5 yrs |
| Typical rent-free | 24 mos | 4 mos |
| Lease norms | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. | 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 | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | London | Tokyo |
|---|---|---|
| Talent index (0–100) | 96 | 84 |
| Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | 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. |
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium.
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.
Tokyo is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 84/100).
London has the lower headline corporate tax (25% vs 30.6%). Local incentives can change the effective rate materially.
London typical term is 10 years with 24 months free; Tokyo runs 5 years with 4 months free.
London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. 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 London, 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.