Shanghai ($122/sqft, 19.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Shanghai on rent and tax and Tokyo on talent depth.
Shanghai ($122/sqft, 19.8% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: Shanghai on rent and tax and Tokyo on talent depth.
| Metric | Shanghai | Tokyo |
|---|---|---|
| Region | APAC | APAC |
| Country | China | Japan |
| Class A rent (USD/sqft/yr) | $122 | $113 |
| Class A rent (local) | 880 CNY | 50000 JPY |
| Vacancy | 19.8% | 4.6% |
| Trend | softening | rising |
| Prime yield | 4.4% | 3% |
| Premium flex / seat / month (USD) | $740 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 25% | 30.6% |
| Metric | Shanghai | Tokyo |
|---|---|---|
| Typical term | 3 yrs | 5 yrs |
| Typical rent-free | 8 mos | 4 mos |
| Lease norms | Standard 3-year lease with renewal option. Rent gross of management fees but exclusive of utilities. Bank guarantee or rent deposit of 3-6 months standard. Reinstatement at lease-end is contractual. | 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 | Headline corporate tax 25% (15% for High and New Technology Enterprises). Free Trade Zone advantages exist. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component. |
| Metric | Shanghai | Tokyo |
|---|---|---|
| Talent index (0–100) | 76 | 84 |
| Talent note | Mainland China's deepest financial-services and tech talent pool. Average all-in compensation indexes 76. | 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. |
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
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.
Tokyo has the deeper talent index (84/100 vs 76/100).
Shanghai has the lower headline corporate tax (25% vs 30.6%). Local incentives can change the effective rate materially.
Shanghai typical term is 3 years with 8 months free; Tokyo runs 5 years with 4 months free.
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta. 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 Shanghai, 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.