Latest Office Market Report Announced: Office Vacancy Rate Stable from Previous Month

Sanko Estate Co., Ltd. (Headquarters: Chuo-ku, Tokyo; President & CEO: Shojiro Fukushima) will release its "Office Market May 2026" report, which summarizes market data for large-scale buildings*1 in Tokyo's 5 central wards (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) and 6 major cities nationwide (Tokyo, Sapporo, Sendai, Nagoya, Osaka, and Fukuoka) for April 2026. *1: Large-scale building = Rental office building with a floor area of 200 tsubo or more per floor *Survey date: As of end of April 2026 and as of December 31 each year *This release and published data can also be viewed at the following URL: https://www.sanko-e.co.jp/data/ Tokyo's 5 Central Wards, Large-scale Buildings: Vacancy Rate & Potential Vacancy Rate Vacancy Rate Stable from Previous Month, Maintaining a Low Level in the Low 1% Range The vacancy rate remained stable from the previous month at 1.15%. While a significant amount of currently vacant space arose due to relocations to company-owned buildings, vacancy absorption progressed mainly in new and recently completed buildings in Minato Ward. The vacancy rate continues to hover at a low level in the low 1% range. The potential vacancy rate decreased by 0.06 percentage points from the previous month to 2.55%. Tokyo's 5 Central Wards, Large-scale Buildings: Asking Rent & Asking Area Asking Rent Increased for 6 Consecutive Months, Recovering to 33,000 yen/tsubo Level for the First Time Since November 2008 Asking rents increased for the sixth consecutive month, recovering to the 33,000 yen/tsubo level for the first time since November 2008. Of the approximately 250,000 tsubo of asking area, approximately 160,000 tsubo is in existing buildings, a decrease to the level of May 2020. In addition to the rise in rent levels and limited options, there is an increasing number of cases where companies postpone relocation plans and respond by renovating existing offices. Tokyo's 5 Central Wards, Large-scale Buildings: Contracted Area (Quarterly) Year-on-Year Decline for Two Consecutive Quarters Contracted area is an indicator of the activeness of leasing activities. The contracted area in the first quarter of 2026 fell below 100,000 tsubo, marking a year-on-year decline for two consecutive quarters, following the fourth quarter of 2025. Analyst's View Annual contracted area has exceeded the previous year for five consecutive years since 2021, indicating an expanding trend in leasing activities. While current office demand is active, the absorption of vacant space in central Tokyo and the limited availability of significant asking area make it difficult to expect the same momentum in the growth of contracted area as before. Furthermore, with rising material prices due to the tightening situation in the Middle East and increasing caution regarding economic recession, it is necessary to closely monitor future demand trends. (Market Research Department: Toyokazu Imaseki, Hiromi Tsuda) Sanko Estate HP: https://www.sanko-e.co.jp/ About Sanko Estate Co., Ltd. Sanko Estate Co., Ltd. (established May 17, 1977) comprehensively supports corporate office strategies. From selecting and brokering rental office buildings to verifying and proposing optimal workplaces, and providing essential management functions for project execution, we widely address all office-related needs.