Market Size of Japan Office Real Estate Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Japan Office Real Estate Market Analysis
The Japanese office real estate market is expected to register a CAGR of over 4% during the forecast period.
In Japan, the COVID-19 pandemic sparked dramatic shifts in workplace working practices and locations. In reaction to the pandemic, roughly 60% of companies introduced remote working. In the office market, the number of relocations or new openings was placed on hold, delayed, or canceled due to the impact of the pandemic. In October 2021, about 37% of companies used remote work for employees.
- Through 2022, the vacancy rate for Grade A offices is expected to rise by about 2%.At the same time, about 190,000 tsubos (6,28,900 square meters) of new Grade A office space is expected to be delivered in 2023, making it the second-highest total in history after 2018. The Grade A vacancy rate is expected to reach 3.5% in Q4 2023, up 2.3 percentage points from Q4 2020.
- 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. In most regional cities, vacancy rates should begin to drop in 2022. On the other hand, the quantity of new supply is likely to influence the rate of increase. In comparison to other cities, the quantity of additional office space anticipated for completion over the next three years in Yokohama, Kanazawa, and Fukuoka is higher.
