Tokyo

"Leasing demand in Tokyo remains resilient, supported by healthy corporate performance and increasing office attendance. Despite a notable pipeline of office supply scheduled for completion in 2026, encouraging levels of pre-leasing activity should help sustain strong market performance."

"The Tokyo office market is witnessing strong leasing demand from tenants, with rents seeing sustained growth and vacancy falling over consecutive quarters. Positive corporate performance and business expansions on top of the labour shortage, not to mention elevated office attendance, have bolstered the demand for modern, conveniently located offices. As such, pre-leasing for incoming offices in 2025 has proceeded well, dispelling fears of major fluctuations due to the large influx of new supply."

"Office leasing demand has strengthened as Japan corporations have started to expand business operations. Strong corporate performance and growing rates of office attendance have improved the office market outlook, with the notable influx of office supply in 2023 having been absorbed with few issues. Overall, new supply in 2024 will be moderate, which should allow the market some breathing room to absorb existing vacant space, as well as providing a platform for growth."