Osaka ($168/sqft, 4.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Osaka on talent depth and Tokyo on rent and tax.
Osaka ($168/sqft, 4.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Osaka on talent depth and Tokyo on rent and tax.
| Metric | Osaka | Tokyo |
|---|---|---|
| Region | APAC | APAC |
| Country | Japan | Japan |
| Class A rent (USD/sqft/yr) | $168 | $113 |
| Class A rent (local) | 25000 JPY | 50000 JPY |
| Vacancy | 4.8% | 4.6% |
| Trend | flat | rising |
| Prime yield | 3.6% | 3% |
| Premium flex / seat / month (USD) | $660 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 30.62% | 30.6% |
| Metric | Osaka | Tokyo |
|---|---|---|
| Typical term | 4 yrs | 5 yrs |
| Typical rent-free | 2 mos | 4 mos |
| Lease norms | Standard Japanese commercial lease (futsuu shakuyaku) — 2-3 year terms with auto-renewal; or fixed-term lease (teiki shakuyaku) of 4-10 years. Security deposit (shikikin) of 10-12 months standard. Free rent of 2-4 months on a 4-year deal. | 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 | 23.2% national corporate tax plus prefectural and municipal taxes for an effective combined rate near 30.6%. SME and R&D tax credits available. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Osaka | Tokyo |
|---|---|---|
| Talent index (0–100) | 85 | 84 |
| Talent note | Deep manufacturing, pharma, and trading talent. Strong feed from Osaka University, Kyoto University, and Kobe University. Japanese-only operating environment for most domestic tenants. | 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. |
Osaka: Osaka Metro (8 lines), JR West (loop and radial), Hankyu, Hanshin, Kintetsu, and Nankai private rails. Osaka Station / Umeda is the world's third-busiest rail hub. KIX airport connected via Nankai and JR.
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.
Osaka has the deeper talent index (85/100 vs 84/100).
Tokyo has the lower headline corporate tax (30.6% vs 30.62%). Local incentives can change the effective rate materially.
Osaka typical term is 4 years with 2 months free; Tokyo runs 5 years with 4 months free.
Osaka: Osaka Metro (8 lines), JR West (loop and radial), Hankyu, Hanshin, Kintetsu, and Nankai private rails. Osaka Station / Umeda is the world's third-busiest rail hub. KIX airport connected via Nankai and JR. 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 Osaka, 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 Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.