Tokyo Central Office Vacancy Rates Fall to Lowest Since Pandemic on Return to In-Person Work

Corporate Shifts Away From Remote Work

The tightening market reflects a broader operational shift as major companies scale back work-from-home arrangements to foster internal collaboration. LY Corp. updated its staff attendance rules in April at its Akasaka district office in Minato Ward, requiring employees to come in three times a week instead of once a week or monthly. A company official told Kyodo News that remote work hinders everyday conversations and spontaneous interactions, making cross-departmental relationships difficult to build.

GMO Internet Group Inc. also ended its remote work recommendations in July, targeting faster decision-making through in-person communication. The group plans to open a new office directly connected to Shibuya Station as early as this winter. A GMO official explained that prime locations and advanced office design contribute directly to business competitiveness and employee pride.

Comparative Regional Trends Across Japan

While Tokyo leads the market tightening, other major Japanese urban centers are experiencing similar downward trends in vacant commercial space. According to Miki Shoji Co.’s survey data, vacancy rates stand at:

• Nagoya: 3.55 percent
• Osaka: 3.10 percent
• Fukuoka: 4.81 percent

A vacancy rate of 5 percent is traditionally regarded as a balanced market where neither landlords nor tenants hold a distinct advantage.

Supply Constraints and Market Outlook

Redevelopment projects have faced delays due to soaring construction costs, creating a squeeze in supply that analysts expect to continue. Ryota Takemoto, a senior researcher at Mitsubishi UFJ Trust and Banking Corp., told Kyodo News that declining vacancy rates will likely persist through 2027 because urban office demand remains firm while construction stays below previous levels.