Tokyo’s office vacancy rate in April was 6.11%, a 0.3 point improvement from the previous month and a 0.27 point improvement from last year. The office leasing market is showing signs of recovery, and some companies are seeking to expand their office space.

Four of the five central wards saw vacancy rates improve from the previous month with the exception of Shibuya which saw rates increase by 0.42 points to 4.37%. Chiyoda’s vacancy rate is now back to the lowest level since January 2021

Office vacancy rates by ward:

  • Chiyoda: 3.97%
  • Chuo: 6.71%
  • Minato: 8.48%
  • Shinjuku: 5.51%
  • Shibuya: 4.37%

Rents, however, are still on the decline with the average monthly rent dropping by 95 Yen from the previous month to 19,896 Yen per tsubo (6,020 Yen/sqm). Rents have dropped 1.68% from last year, although the rate of decline is slowing.

Source: Miki Shoji, May 11, 2023.