Tokyo’s office rent boom spurs deals as Blackstone plans sale

Tokyo’s office market remains resilient despite interest rates hitting a 31-year high, with rising rents driving investment to its highest third-quarter level since 2007. | BLOOMBERG

Nov 9, 2026

Interest rates at a 31-year high have yet to dent the office market in Tokyo, where surging rents are boosting investment activity.

Commercial-property investment across Japan hit ¥2 trillion ($13 billion) in the third quarter, the highest volume for the equivalent period since 2007, according to data from brokerage firm Jones Lang LaSalle (JLL). Office deals occupied 36% of the total deal volume — the largest portion — and nearly 70% of total investments were in the Tokyo region.

“Rent is increasing so investors are still able to see huge amounts of rental upside, especially if the current building’s office rent is lower than the market rate today,” Koji Naito, research director of capital markets at JLL Japan, said in an interview.

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