Japan Office MarketView Q3 2025

Tokyo: Grade A rents record largest single-quarter increase since Q3 2007

The All-Grade vacancy rate for the quarter (Q3 2025) slid by 0.4 pp. q-o-q to 2.1%, while the Grade A vacancy rate also fell by 0.4 pp. q-o-q to 1.0%, reflecting an extremely tight market. Large vacant units in central Tokyo continued to attract significant interest from potential tenants as supply tightened. Average rents once again increased across all grades, spiking by 3.4% q-o-q to JPY 39,750 for the Grade A segment. This represented the largest single-quarter increase since Q3 2007 and pushed rents above the most recent peak of JPY 39,000 recorded in Q1 2020.

Osaka: All-Grade rents reach new record high

Vacancy rates fell for all grades during the quarter, with the All-Grade vacancy rate declining by 0.3 pp. q-o-q to 2.3%. While the quarter’s one new building entered operation at less than full capacity, vacancies were steadily filled in existing properties. Average rents increased across all grades, with All-Grade rents recording a rise of 1.4% q-o-q to reach JPY 14,760, exceeding the previous all-time high registered in Q3 2020. Landlords raised rents in Grade A buildings in both the sought-after Umeda area and in other areas.

Nagoya: Grade A and All-Grade rents reach new record highs

The All-Grade vacancy rate fell by 0.7 pp. q-o-q to 2.4% in Q3 2025, dropping below the 3% threshold for the first time since Q2 2021. During the quarter, vacancies were absorbed by companies from a wide variety of industries upgrading to larger or superior locations, and by those undertaking in-house expansions and secondary office openings. Average rents increased across all grades, with Grade A rents edging up by 1.4% q-o-q to reach JPY 28,300, and All-Grade rents rising by 0.8% q-o-q to JPY 14,390. These levels were the highest since CBRE’s surveys began.

Regional cities: Tenant demand remains robust nationwide as vacancies continue to be absorbed in existing buildings

All-Grade vacancy rates for the quarter fell q-o-q in five of the 10 surveyed cities, remained unchanged in two, and rose in the remaining three. During the quarter, vacancies were filled by tenants looking to expand or upgrade their offices, improve office location, or move to temporary premises for the purposes of rebuilding. All-Grade rents for the quarter rose q-o-q in nine of the 10 cities surveyed, with Kanazawa being the exception. Major rental increases of over 1% q-o-q were recorded in Yokohama, Sendai, and Takamatsu. In Sapporo, Saitama, and Hiroshima, rents once again rose to new record highs this quarter.