Tokyo office vacancy hits 10-year high; rents drop 30% in 3 years

Glut persists as remote workers stay home, companies rethink operations

The office vacancy rate in Tokyo hit nearly 6.5% in July due mainly to remote work and weak corporate demand. (Photo by Takeshi Hashimoto)

TAKESHI HASHIMOTO and KAZUKI YAMAGUCHI, Nikkei staff writers

September 7, 2023 14:22 JST

TOKYO -- Demand for office space in central Tokyo is slowing. While large buildings are continuing to open, the vacancy rate stands at a 10-year high of over 6%, due to more people working from home and foreign companies reviewing their operations.

According to office brokerage Miki Shoji, the office vacancy rate in Tokyo's five central wards -- Chiyoda, Chuo, Minato, Shinjuku and Shibuya -- was 6.46% as of July, pushing it above 5% for 30 consecutive months. Other regions will also surpass pre-COVID levels, with Osaka at 4.6% and Nagoya at 5.5%.