Location is key in Tokyo office market's bifurcated recovery

TOKYO -- Tokyo's office market has bottomed out after a four-year COVID-induced downturn, but experts warn of a two-speed recovery as the spread of hybrid work leaves office space in some locations struggling to find tenants.

In Marunouchi, Japan's main financial center, demand for office space has been recovering over the past year. But in Harumi, just 3 kilometers away, vacancy rates are stuck above 20%, according to data from Mitsubishi UFJ Trust and Banking.