Japan Office MarketView Q2 2026

Tokyo: Grade A and Grade A- categories lead rent growth for second consecutive quarter 
The All-Grade vacancy rate declined 0.1 pp. q-o-q to 1.4% in Q2 2026 as space absorption continued to be driven by upgrades, expansion relocations, and in-building floor space increases. With available space becoming increasingly scarce, inquiries for vacated units in existing buildings as well as upcoming new supply intensified during the quarter. Rents rose across all grades, with Grade A and Grade A- leading the upswing at 4.3% and 4.7% q-o-q, respectively.

Osaka: Rents rise across all grades for eighth consecutive quarter
During Q2 2026, the All-Grade vacancy rate fell 0.2 pp. q-o-q to 1.8%. While activity this quarter was characterized predominantly by smaller-scale relocations of around 100 tsubo, demand remained firm. The Grade A vacancy rate fell 0.6 pp. q-o-q to 2.4%, driven by a large-scale relocation from a corporate-owned building into a recently completed property. Rents continued to rise across all grades, setting new all-time highs. Grade A rents recorded another strong increase of 4.1% q-o-q.

Nagoya: Grade A assumed achievable rent surpasses JPY 30,000 for first time on record
The All-Grade vacancy rate declined 0.2 pp. q-o-q to 2.0% this quarter, with absorption in Grade B buildings the primary driver. In the Grade A segment, vacancies were absorbed in recently completed buildings, while secondary vacancies emerged in an existing building. This pushed up the vacancy rate for this category by 0.1 pp. q-o-q to 1.2%. Rents rose across all grades during the quarter. Grade A assumed achievable rents increased 2.7% q-o-q to JPY 30,500, surpassing the JPY 30,000 threshold for the first time on record and extending the all-time high set in the previous quarter.

Regional cities: Rent growth accelerates in supply-constrained markets amid robust demand
The All-Grade vacancy rate in Q2 2026 registered q-o-q declines in six of the 10 surveyed cities and rose in four. Leasing demand remained firm nationwide, with relocations driven primarily by office environment improvements and expansion. All-Grade rents rose q-o-q across all 10 cities. Rent increases accelerated in cities with tight supply-demand conditions, such as Saitama and Kobe. Amid greater awareness of rising costs, tenants are becoming more accepting of higher rents.