ASIA PACIFIC OUTLOOK 2025

TOKYO

RENT GROWTH

Inflation is expected to remain elevated, averaging at around 2.3% over the next three years. Rising costs are adding some upward pressure on rental levels at new completions. Despite an incoming supply wave expected up until 2029, the negative impact in relation to the current Grade A office inventory of 2.9 million tsubo (9.6 million sq m) is likely to be limited. Tokyo’s rent remains 7.1% lower than the pre-COVID peak recorded in 2018. Japan’s transition to the first inflationary environment since 1990 would require further upward price adjustment.

5.0%

31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000 41,000 42,000

FORECAST

4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%

-2.0%

2022 2023 2024F 2025F 2026F 2027F 2028F 2029F

JPY/TSUBO/MO

Rent growth (%)

RENT (JPY/TSUBO/MO) AND RENT GROWTH (% PER ANNUM)

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025

Source: Cushman & Wakefield