Japan Office Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Japan Office Real Estate Market Report is Segmented by Key Cities (Tokyo, Kyoto, and the Rest of Japan). The Report Offers Market Size and Forecasts for the Japan Office Real Estate Market in Terms of Value (USD) for all the Above Segments.

Japan Office Real Estate Market Size

Japan Office Real Estate Market Summary
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Japan Office Real Estate Market Analysis

The Japan Office Real Estate Market size is estimated at USD 21.36 billion in 2025, and is expected to reach USD 24.96 billion by 2030, at a CAGR of 3.17% during the forecast period (2025-2030).

  • International investors had driven Japan's office building market on track to become net sellers for the first time in 2023 as falling rents and rising interest rates dimmed its appeal. Government policies and investment regulations are among the most critical factors contributing to Japan's office real estate market growth. The government implements various measures to stimulate office real estate investment, such as tax incentives and deregulation, boosting market growth.
  • In the first nine months of 2023, foreign investors' sales of Japanese real estate more than doubled during the year to USD 7.1 billion, while their purchases fell about 20%.
  • All-grade regional offices have seen some diverging trends. It was mild in Osaka and Sendai. Corrections in rents, while Nagoya, Fukuoka, and Sapporo saw marginal increments over the past year. On the other hand, Tokyo experienced a 5.5% year-on-year decrease in all grade rents, suggesting that the overall performance has been better compared to regional markets.
  • The Grade vacancy rate for the second quarter of 2023 increased by 0.3 pp qoq to 4.9%, mainly due to new supply coming on stream with significant vacancies. Although vacant space in new supply was equivalent to 0.7% of total stock, the continuing absorption of space in existing buildings ensured the overall increase in vacancy rate was limited to 0.3 pp. All-grade rents fell by 0.2% q-o-q on the back of the continued lowering of asking rents in buildings with prolonged vacancies.
  • As the economy gets better, it is expected that most people will want to work in offices in regional cities in 2022 or 2023, depending on the city. On the other hand, the quantity of new supply is likely to influence the rate of increase. Compared to other cities, the additional office space anticipated for completion over the next three years in Yokohama, Kanazawa, and Fukuoka is higher.

Japan Office Real Estate Industry Overview

There are global and regional players in the Japanese office real estate market and a lot of competition. Companies are gearing up to meet future needs, and many are entering the market for further opportunities. Some significant players are Mitsui Fudosan, Mitsubishi Estate, Sumitomo Realty & Development, Tokyu Land Corporation, etc.

Japan Office Real Estate Market Leaders

  1. Mitsui Fudosan

  2. Mitsubishi Estate

  3. Sumitomo Realty & Development

  4. Tokyu Land Corporation

  5. Nomura Real Estate Holdings

  6. *Disclaimer: Major Players sorted in no particular order
Japan Office Real Estate Market Concentration
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Japan Office Real Estate Market News

  • November 2023: Mori Building Co., Ltd. officially launched Azabudai Hills, a mixed-use complex and world-class new neighborhood in central Tokyo. Azabudai Hills is a nature-rich landmark with integrated urban functionalities, including a top-tier business center, residential, retail, cultural, and medical facilities, educational institutions, and an ample open space filled with lush greenery that brings people together.
  • January 2023: Buildings in the capital's Otemachi business district are becoming green and lush as developers resort to plants, trees, and farms to attract office employees seeking refreshing work surroundings. Mitsui & Co. and Mitsui Fudosan Co. are at the forefront of the movement, creating one of the district's most prominent green areas. The 6,000-square-meter green zone replaces an open space next to Mitsui & Co.'s former headquarters.

Japan Office Real Estate Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS AND DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increasing Rental Prices of Office Spaces
  • 4.3 Market Restraints
    • 4.3.1 Remote Work and Hybrid Models
  • 4.4 Market Opportunites
    • 4.4.1 The demand for flexible office spaces, including co-working spaces and serviced offices, has been growing
  • 4.5 Value Chain / Supply Chain Analysis
  • 4.6 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.6.1 Bargaining Power of Buyers/Consumers
    • 4.6.2 Bargaining Power of Suppliers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitute Products
    • 4.6.5 Intensity of Competitive Rivalry
  • 4.7 Government Regulations and Initiatives
  • 4.8 Technological Trends
  • 4.9 Insights into Rental Yields in the Office Real Estate Segment
  • 4.10 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy (%)/Vacancy (%))
  • 4.11 Insights into Office Real Estate Construction Costs
  • 4.12 Insights into Office Real Estate Investment
  • 4.13 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

  • 5.1 By Key Cities
    • 5.1.1 Tokyo
    • 5.1.2 Kyoto
    • 5.1.3 Rest of Japan

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration Overview
  • 6.2 Company Profiles
    • 6.2.1 Mitsui Fudosan
    • 6.2.2 Mitsubishi Estate Co.
    • 6.2.3 Sumitomo Realty & Development
    • 6.2.4 Tokyu Land Corporation
    • 6.2.5 Nomura Real Estate Holdings
    • 6.2.6 Hulic
    • 6.2.7 Tokyo Tatemono
    • 6.2.8 Mori Trust
    • 6.2.9 Mori Building
    • 6.2.10 Nakano Corporation*
  • *List Not Exhaustive
  • 6.3 Other Comapnies

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

8. APPENDIX

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Japan Office Real Estate Industry Segmentation

Office real estate is a crucial component of the commercial real estate market. It refers to buildings and other properties used for office space and related activities, such as research and development, data centers, and call centers.

A complete background analysis of the Japan Office Real Estate Industry, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The Japan office real estate market is segmented by key cities (Tokyo, Kyoto, and the rest of Japan). The report offers market size and forecasts for the Japan Office Real Estate market in value (USD) for all the above segments.

By Key Cities Tokyo
Kyoto
Rest of Japan
By Key Cities
Tokyo
Kyoto
Rest of Japan
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Japan Office Real Estate Market Research FAQs

How big is the Japan Office Real Estate Market?

The Japan Office Real Estate Market size is expected to reach USD 21.36 billion in 2025 and grow at a CAGR of 3.17% to reach USD 24.96 billion by 2030.

What is the current Japan Office Real Estate Market size?

In 2025, the Japan Office Real Estate Market size is expected to reach USD 21.36 billion.

Who are the key players in Japan Office Real Estate Market?

Mitsui Fudosan, Mitsubishi Estate, Sumitomo Realty & Development, Tokyu Land Corporation and Nomura Real Estate Holdings are the major companies operating in the Japan Office Real Estate Market.

What years does this Japan Office Real Estate Market cover, and what was the market size in 2024?

In 2024, the Japan Office Real Estate Market size was estimated at USD 20.68 billion. The report covers the Japan Office Real Estate Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Japan Office Real Estate Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Japan Office Real Estate Industry Report

Statistics for the 2025 Japan Office Real Estate market share, size and revenue growth rate, created by Mordor Intelligenceā„¢ Industry Reports. Japan Office Real Estate analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Japan Office Real Estate Market Report Snapshots

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