Seattle ($52/sqft, 26.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Seattle on talent depth and Tokyo on rent and tax.
Seattle ($52/sqft, 26.4% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Seattle on talent depth and Tokyo on rent and tax.
| Metric | Seattle | Tokyo |
|---|---|---|
| Region | Americas | APAC |
| Country | United States | Japan |
| Class A rent (USD/sqft/yr) | $52 | $113 |
| Class A rent (local) | 52 USD | 50000 JPY |
| Vacancy | 26.4% | 4.6% |
| Trend | softening | rising |
| Prime yield | 6.7% | 3% |
| Premium flex / seat / month (USD) | $940 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 21% | 30.6% |
| Metric | Seattle | Tokyo |
|---|---|---|
| Typical term | 10 yrs | 5 yrs |
| Typical rent-free | 16 mos | 4 mos |
| Lease norms | Modified-gross structures with operating-expense pass-throughs. 10-12 year terms standard for trophy. Free rent of 12-18 months and TI of $100-$150/sqft typical on a 10-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 | 21% federal corporate income tax. No Washington State corporate income tax. Washington B&O tax applies to gross receipts (rates vary by activity). Seattle JumpStart payroll expense tax applies to tenants with $7M+ payroll. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Seattle | Tokyo |
|---|---|---|
| Talent index (0–100) | 92 | 84 |
| Talent note | Deepest cloud, AI, and SaaS engineering talent pool in North America. UW and a deep network of T-1 engineering programs feed. Cost-of-living advantage versus Bay Area is structural. | 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. |
Seattle: Sound Transit Link light rail (1 Line) extended in 2024 to Lynnwood; East Link to Bellevue / Redmond opening 2025-26. Streetcar serves South Lake Union. King County Metro bus network anchors local commute.
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.
Seattle is the cheaper Class A market on a USD basis.
Seattle has the deeper talent index (92/100 vs 84/100).
Seattle has the lower headline corporate tax (21% vs 30.6%). Local incentives can change the effective rate materially.
Seattle typical term is 10 years with 16 months free; Tokyo runs 5 years with 4 months free.
Seattle: Sound Transit Link light rail (1 Line) extended in 2024 to Lynnwood; East Link to Bellevue / Redmond opening 2025-26. Streetcar serves South Lake Union. King County Metro bus network anchors local commute. 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 Seattle, 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 Miriam Hollander — Lead market analyst. Last updated 2026-04-15. See our methodology and editorial standards.