Japan Office MarketView Q3 2026

Tokyo: Grade A vacancy rate holds flat q-o-q at 0.6%, remaining below 1% for fourth consecutive quarter
The All-Grade vacancy rate in Tokyo declined 0.1 pp q-o-q to 1.3% in Q3 2026. The Grade A vacancy rate held flat at 0.6%, remaining below 1% for the fourth consecutive quarter. Three new Grade A buildings were completed this quarter, all of which were nearly fully occupied. Demand for office upgrades and expansion remains robust across a wide range of industries. Rents continued to record strong growth across all grades, led by Grade A rents with gains of 5.4% q-o-q, their second-highest quarterly growth rate on record.

Osaka: Grade A rents surpass JPY 30,000 for first time since surveys began

Osaka’s All-Grade vacancy rate rose 0.2 pp q-o-q to 2.0% in Q3 2026. New supply, as well as vacancies in existing buildings, contributed to the increase, but tenant demand remained firm for upgrades and in-building expansions. Rents rose across all grades, reaching new all-time highs. Grade A rents increased 3.4% q-o-q to JPY 30,150, surpassing the JPY 30,000 threshold for the first time on record. High-rent properties, primarily in the Umeda area, led the overall rent increase.

Nagoya: Rental growth accelerates across all grades
The All-Grade vacancy rate in Nagoya declined 0.1 pp q-o-q to 1.9% in Q3 2026. New supply consisted of one Grade A building, which was delivered at near-full occupancy thanks to solid demand from companies in neighboring buildings and owner-occupied buildings looking to upgrade their office environment. Rental growth accelerated across all grades during the quarter. Grade A rents led overall market rental growth with a gain of 5.2% q-o-q, their third-highest quarterly growth rate on record.

Regional Cities: Rents rise in all 10 cities for second consecutive quarter; Sendai logs new all-time high
In regional cities, the All-Grade vacancy rate for Q3 2026 declined q-o-q in seven of the 10 surveyed cities, rose in two, and remained flat in one. Vacancies continued to be absorbed over the quarter due to companies upgrading the quality and location of their offices, opening branch offices, and expanding within their current premises. All-Grade rents rose q-o-q in all 10 cities for the second consecutive quarter. Amid tightening supply-demand conditions, upward pressure on rents is spreading across the broader market, regardless of building location or age.