[Latest Office Market Report Released] Office Vacancy Rate Remains Largely Flat from Previous Month

Sanko Estate Co., Ltd. (Headquarters: Chuo-ku, Tokyo; President: Shojiro Fukushima) will release the "Office Market July 2026" report, which compiles market data for large-scale buildings*1 in Tokyo's five central wards (Chiyoda, Chuo, Minato, Shinjuku, Shibuya) and six major cities nationwide (Tokyo, Sapporo, Sendai, Nagoya, Osaka, Fukuoka) as of June 2026.

*1: Large-scale buildings = Rental office buildings with a floor area of 200 tsubo or more.

*Survey Date: As of the end of June 2026 and as of December 31st of each year.

*This press release and public data can also be viewed at the following URL: https://www.sanko-e.co.jp/data/

Vacancy Rate & Potential Vacancy Rate for Large-Scale Buildings in Tokyo's Five Central Wards

Vacancy Rate Largely Flat from Previous Month; Slight Movement Continues Since Beginning of Year

The vacancy rate was 1.11%, a decrease of 0.01 percentage points from the previous month, remaining largely flat. While available space in the bay area became vacant, absorption of vacancies progressed due to expansions within buildings. Since the beginning of the year, slight movements have continued, and the vacancy rate has trended flat. Many available spaces are in advanced stages of negotiation for leases, leading to a stronger sense of scarcity than the vacancy rate indicates. The potential vacancy rate was 2.50%, a decrease of 0.06 percentage points from the previous month.

<Vacancy Rate & Potential Vacancy Rate>

Asking Rent & Available Space for Large-Scale Buildings in Tokyo's Five Central Wards

Asking Rent Rises for 8th Consecutive Month; Upward Trend Continues

The asking rent rose for the eighth consecutive month. The upward trend continues, with rents in the ¥34,000 range, last seen in September 2008, coming into view. Against a backdrop of a tight supply-demand balance, landlords are showing a strong stance, actively pushing for higher terms for both new and renewed leases.

<Asking Rent & Available Space>

Net Absorption & New Supply for Large-Scale Buildings in Tokyo's Five Central Wards

Positive for 17 Consecutive Quarters Since Q2 2022

Net absorption is an indicator of office demand, representing the change in tenant occupied space (occupied area) over a certain period. In the most recent Q2 2026, demand exceeded new supply, marking the 17th consecutive quarter of positive net absorption since Q2 2022.

<Net Absorption & New Supply>

Analyst's Perspective

Office demand remains robust, but the supply-demand gap, which represents the difference between new supply and absorption demand, has remained at a slight level for two consecutive quarters. This is due to the limited availability of large vacant spaces in existing buildings, making it difficult for absorption demand to grow beyond new supply. While a significant amount of space is scheduled for delivery in the third quarter, all buildings are progressing smoothly with pre-leasing, and a tight supply-demand balance is expected to continue. (Market Research Department: Hiromi Tsuda, Toyokazu Imazeki)

<Vacancy Rate Trends (6 Major Cities, Large-Scale Buildings)>

<Asking Rent Trends (6 Major Cities, Large-Scale Buildings, Prime Station Areas)>

Sanko Estate HP: https://www.sanko-e.co.jp/

About Sanko Estate Co., Ltd.

Sanko Estate Co., Ltd. (established May 17, 1977) provides comprehensive support for corporate office strategies. From support and brokerage for selecting rental office buildings to verification and proposals for optimal workplaces, and the provision of management functions essential for project execution, we respond broadly to all office-related needs.