Outlook 2023 Japan

TOKYO

DEMAND & VACANCY

NET ABSORPTION (TSUBO) AND VACANCY RATE (%)

FORECAST

7.0%

250,000

 Tenant demand remains mixed, with floor reductions in other industries offsetting employment growth in the Technology and Real Estate sectors.​  Major tenants’ flight to quality and ongoing price discounts are expected to support the positive Grade A office demand. ​  Net absorption is forecast to turn positive from 2022, with further demand tracking behind the incoming supply at least until 2027.  Over the next five years, the vacancy is expected to increase to the mid-5% from a low of 0.6% in 2019. ​

200,000

6.0%

150,000

5.0%

100,000

4.0%

50,000

3.0%

0

2.0%

-50,000

1.0%

-100,000

0.0%

-150,000

2020

2021

2022F 2023F 2024F 2025F 2026F Net Absorption Vacancy Rate

Source: Cushman & Wakefield