Office rents in Tokyo, Japan, have been found to have risen to their highest level in 32 years. The occupancy rate of newly constructed office buildings, which had been sluggish due to the impact of COVID-19, is also showing a clear recovery trend.

The Nikkei newspaper reported on the 6th that Tokyo office rents are soaring. According to a survey conducted by Nikkei based on rental data from four Japanese real estate companies, Tokyo's office rent index recorded its highest level since the first half of 2008. Specifically, with February 1985 prices set at 100, the index for buildings in Tokyo (more than one year after construction) stood at 165.81, a 6% (9.57 point) increase compared to the same period last year. The area with the highest rent increase was the "Marunouchi-Otemachi" district, where rents rose by 8% during the same period. This area is a major business district near Tokyo Station with a high concentration of large buildings.

Amid this, the vacancy rate for rental offices in Tokyo's central five wards (Chiyoda, Chuo, Minato, Shinjuku, Shibuya), which boast convenient transportation and well-developed commercial areas, was found to be only 3.86%, nearing full occupancy.

The sales rate of newly built buildings, which had been low due to the impact of COVID-19, is also showing signs of recovery. According to a survey released by real estate developer Mori Trust in April, the sales rate for large office buildings in Tokyo's 23 wards completed in 2024 exceeded 80%. The sales rates for new buildings scheduled for completion in 2025 and 2026 were also reported to be in the 60-70% range. The Nikkei newspaper stated, "An increasing number of companies are investing in well-located offices to attract talented personnel," adding, "Demand is particularly concentrated in buildings with high transportation convenience."

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