How are office rents doing for the compact sector of the office market? According to the latest biannual report by AtHome, the market seems fine. Overall, rents in Tokyo were relatively flat in the first half of 2023 but several areas saw rents hit 10-year highs. 

The report covers office spaces with floor plates sized under 50 tsubo (165 sqm), and splits the data into compact-type (25 ~ 50 tsubo) and ultra-compact-type (5 ~ 25 tsubo). 

The most expensive district for ultra-compact office space was Ginza with an average monthly rent of 19,101 Yen per tsubo (+3.2% from the second half of 2022). For compact office space, Shibuya was in top spot with rents of 22,044 Yen per tsubo (+4.2%) – a record high. Ginza was in second place at 20,364 Yen per tsubo (+0.5%).

Harajuku/Omotesando, Shibuya, Ebisu/Nakameguro, Kanda/Akihabara, Ikebukuro, Nakano/Ogikubo, Otsuka, Ryogoku/Kinshicho, Hamamatsucho/Tamachi, and Shinagawa/Osaki/Gotanda districts all saw rents reach reach record highs. 

*Rental data is based on advertised listings and includes common area charges but excludes consumption tax. 

Source: AtHome, August 7, 2023.