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- Corporate performance remained positive in 2025, while demand for office space continued to be supported by rising office attendance and ongoing expansion requirements.
- The sizeable supply delivered in 2025 was absorbed well, allowing vacancy to return to pre-pandemic tight levels.
- New supply in 2026 is forecast to be below 2025 levels but remain elevated, with the majority concentrated in the Nihonbashi & Yaesu and Takanawa submarkets.
- New completions in 2026 are reportedly being met with strong pre-leasing activity, which should continue to support rental growth and tight vacancy over the year.
- The supply pipeline in 2027 is expected to be relatively modest partly due to project delays. Key developments are scheduled to be completed in the Shibaura & Hamamatsucho, Toranomon & Kamiyacho, and Shibuya submarkets.
- Supply is anticipated to increase again in 2028 and largely concentrated in the Marunouchi & Otemachi submarket led by the scheduled delivery of the Torch Tower.
Strong fundamentals supporting rental growth
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.
Savills Research & Consultancy