Renting An Office Space in Japan: The Ultimate Guide

Renting an office space in Japan means signing a lease agreement and paying several upfront fees. These include a security deposit, key money, and your first month's rent.

A typical office space rent in central Tokyo runs 23,000 to 40,000 yen per tsubo each month. One tsubo equals about 3.3 square meters, based on 2026 market data.

Companies rent an office for a reputable business address and a dedicated work environment for employees. The tradeoff is higher upfront costs and stricter lease terms than a virtual office or serviced office.

This guide covers real costs, the exact steps to rent an office space in Japan, and the best alternatives if a traditional office is not the right fit for your business.

How much does it cost to rent an office in Japan?

Office space rent in Japan varies a lot by city and by ward. Location is the biggest driver of monthly rent.

Note: Tsubo (坪) is the traditional area measurement in Japan. One tsubo equals about 3.3 square meters, or 35.6 square feet. Landlords almost always quote rent per tsubo, not per square meter.

Here is what office space actually costs across major business districts, based on 2026 market data:

A new office space in a newly built building costs more than an older one in the same area. Rent also runs higher in wards close to major train stations and business districts.

Fees when renting an office space in Japan

Tenants in Japan pay sales tax on rent. As of 2026, that sales tax rate is 10%.

You will also pay several fees on top of monthly rent. Here is the full breakdown:

• Security deposit (敷金, shikikin): a refundable payment, usually 2-6 months' rent.

• Key money (礼金, reikin): a non-refundable payment, usually 1-2 months' rent.

• Agency fee (仲介手数料, chukai tesuryo): a real estate agent commission, capped at one month's rent.

• Guarantee fee (保証料, hoshōryō): a fee to use a guarantor company if your business has no local cosigner.

• Management fee (管理費, kanri-hi): a monthly fee for building maintenance and common areas.

• General cleaning fee (清掃費, seisōhi): a fee some buildings charge for cleaning shared spaces.

• Insurance (保険, hoken): fire and liability insurance.

• Renewal fee (更新料, koshinryo): a fee paid when you renew your lease contract.

• Utilities (光熱費, konetsuhi): electricity, water, gas, and sometimes phone and internet.

• Office furniture and equipment: desks, chairs, and other office equipment you provide yourself.

• Deposit amortization (敷金償却, shikikin shōkyaku): a portion of your security deposit that you do not get back, set at signing. Some landlords, especially outside Tokyo, forfeit this amount regardless of actual repair costs.

Some leases include a free rent term. During this free rent period, you pay no rent at all. This helps businesses cut costs while getting established.

How to rent an office space in Japan

Renting an office space in Japan follows a clear process. Knowing each step helps you find the ideal office space faster. 

1. Choose the right location.

Location is the most important factor when renting an office space. It affects your rent, your commute, and how clients see your business.

Consider these factors before you choose an area:

• Distance to train stations and airports

• Walking time to the nearest station

• Commuting time and cost for employees

• Proximity to banks, the post office, and clients

• Nearby restaurants for meetings and lunch breaks

Different areas of Tokyo have different reputations. Marunouchi, Minato, Ōtemachi, and Shibuya make up the city's central business district and carry the most prestige.

2. Arrange a viewing.

Shortlist two or three locations, then arrange a viewing for each. Seeing a space in person shows you how much room you have for employees and equipment.

A viewing also lets you check the building's facilities and its surrounding area. Look at security, elevators, and nearby amenities.

If you live outside Japan, a local real estate agent can arrange viewings and negotiate on your behalf.

3. Understand office lease types.

Two main lease types exist for renting an office space in Japan. Your choice affects your monthly costs and your flexibility.

1. Long-term rent when renting an office

Long-term leases in Japan come in two forms.

• Ordinary renewable leases run for a term of 2 years under the Act on Land and Building Leases. This lease type suits businesses that plan to stay in the same location long term.

• Fixed-term leases have a set end date and no automatic renewal. This lease type gives both landlord and tenant more flexibility to renegotiate terms once the lease ends.

2. Short-term rent when renting an office

Short-term rent usually means a serviced office. Serviced offices are fully equipped, ready-to-use office spaces you can rent on flexible terms.

A serviced office includes IT infrastructure, a utility room, and access to meeting rooms. Your monthly fee covers security, utilities, office furniture, and the office space rent itself.

4. Pass the tenant screening.

Businesses from foreign countries often face extra scrutiny when renting an office space in Japan. Landlords may decline an application for these reasons:

• The business is renting an office in Japan for the first time

• The business has little or no history in Japan

• The representatives hold nationalities from other countries

• The business has no cosigner or guarantor for the lease contract

Prepare these documents in advance to make an informed decision easier for the landlord:

• A business plan showing your financial management

• Financial statements covering up to three years

• Contact information for a business partner or client based in Japan

• A summary of your representative's qualifications and work history

• A letter from a guarantor company confirming rent payment, if you have no local cosigner

Alternative to renting an office space in Japan

A traditional office is not the only option. Three alternatives can lower your costs while still giving your business a presence in Japan.

1. Virtual office

Virtual offices are the best alternative to renting an office in Japan.

They offer a professional business address without applying a physical space. Instead, you use a virtual office space provider’s address, lowering the overhead costs.

When using or switching to a virtual office in Japan, your mail will be redirected to the provider’s address, meaning they will handle it. Different virtual address providers have different procedures for forwarding your mail. 

Use MailMate’s virtual office as your go-to. 

MailMate’s virtual office plan is perfect for startups and entrepreneurs entering the Japanese market. 

Here’s how MailMate is the best option for you.

a) Have a physical Japanese address

Get an address in Japan without physically renting an office space! That’s what a virtual office address is.

You can choose between addresses in Tokyo’s business districts such as Shinjuku and Minato-ku or Fukuoka City’s business area in Hakata and Tenjin for a reduced price with a virtual address from MailMate.

b) Eliminating physical office costs

With a virtual office, your business does not need to pay ongoing overhead costs for rent, maintenance, and utilities. Instead, all you pay for is the address provided. 

Plus, using a virtual office has a lower initial investment cost, meaning you will avoid paying high down payments on a fixed lease.

With MailMate’s virtual address, you only pay month by month—no fixed contract and you can cancel at any time.

c) Flexible work environment

Virtual office space is great for those with online businesses, remote workers, freelancers, or who want to start with hybrid work. 

There are plenty of virtual office tools and virtual office softwares to help you stay focused on your tasks.

If you need a physical office space for a day, there are plenty of one-day or hourly office spaces around the city.

d) Mail and document management

When using or switching to a virtual office in Japan, your mail will be redirected to the provider’s address, meaning they will handle it. 

Using a virtual office for your business needs means that all incoming mail related to your business comes to MailMate.

MailMate will scan the outside contents for you to view on your dashboard. Then, you can request to open the mail, and MailMate will scan its content. You also have additional options, such as forwarding and shredding that mail. 

Their bilingual staff is here to help you understand and manage your Japanese mail.

Plus, all important documents will comply with Japan’s new electronic bookkeeping system.

2. Shared office

Also known as coworking spaces, these are communal workspaces where individuals and different companies work in the same space. These locations also allow remote and hybrid workers to come in and use their space for a certain amount of time.

Shared offices are a good option for networking. Their flexible teams and cost efficiency make them more advantageous than traditional or private offices. 

However, because the office is open and communal, there is a lack of privacy and constant noise around you.

3. Home office

Home offices are ideal as they combine where you live and work.

While great for remote and online work, using your home address for your business puts your privacy at risk and can present your business as unprofessional.

Frequently asked questions

How much does it cost to rent an office space in Japan?

Office space rent in Japan depends heavily on location. Tokyo's five central wards average about 23,000 to 24,000 yen per tsubo each month, while prime Marunouchi and Otemachi buildings run 40,000 yen or more. Fukuoka's Hakata Station area runs a similar 23,000 to 24,000 yen per tsubo, with the Gion and Nakasu area closer to 17,000 to 18,000 yen. One tsubo equals about 3.3 square meters.

What fees do you pay when renting an office space in Japan?

Beyond monthly rent, tenants pay a security deposit, key money, and an agency fee to their real estate agent. You will also pay a management fee, sales tax at 10%, and sometimes a renewal fee or guarantee fee. Some businesses without a local cosigner pay a guarantee fee to use a guarantor company instead.

Can foreigners rent an office space in Japan?

Yes, foreigners can rent an office space in Japan, though landlords apply extra screening. Common reasons for rejection include no business history in Japan, foreign representatives, or no local cosigner. A strong business plan, financial statements, and a guarantor company can offset these concerns.

What is the difference between a serviced office and a normal rental agreement?

A serviced office is fully furnished and ready to use, with IT infrastructure and meeting rooms included in one monthly fee. A normal rental agreement, or traditional lease, requires you to set up your own furniture, utilities, and infrastructure separately. Serviced offices suit startups and short-term needs, while long-term leases suit established companies.

Is a virtual office a good alternative to renting an office in Japan?

Yes, a virtual office is a strong alternative if you do not need daily physical space. It gives your business a reputable business address and mail handling for a fraction of the cost of renting an office. Most companies use a virtual office to enter the Japanese market before committing to a physical lease.

How long is a typical office lease in Japan?

A standard ordinary lease in Japan runs for 2 years under the Act on Land and Building Leases. Fixed-term leases can run for a different, predetermined period with no automatic renewal. Short-term serviced offices, by contrast, often run month to month.

In closing

Renting an office space in Japan takes time and preparation. Establishing your business here is worth the effort.

If a traditional office is out of your price range, consider a virtual office or coworking space instead. Both options cut your costs and help you make an informed decision about your next step in Japan.