--- title: "London vs Tokyo: Class A office comparison" description: "Side-by-side Class A office comparison for London and Tokyo — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/london-vs-tokyo pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > London ($121/sqft, 8.6% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: London on talent depth and Tokyo on rent and tax. ## TL;DR - Class A rent: London $121/sqft vs Tokyo $113/sqft. - Vacancy: London 8.6% vs Tokyo 4.6%. - Talent index: London 96 vs Tokyo 84. - Corporate tax: London 25% vs Tokyo 30.6%. - Premium flex/seat/month: London $1,380 vs Tokyo $980. # London vs Tokyo: Class A office comparison **London ($121/sqft, 8.6% vacancy) and Tokyo ($113/sqft, 4.6% vacancy) compete on different axes: London on talent depth and Tokyo on rent and tax.** ## TL;DR - [Class A](/glossary/class-a) rent: London $121/sqft vs Tokyo $113/sqft. - Vacancy: London 8.6% vs Tokyo 4.6%. - Talent index: London 96 vs Tokyo 84. - Corporate tax: London 25% vs Tokyo 30.6%. - [Premium flex](/topics/lease-vs-flex)/seat/month: London $1,380 vs Tokyo $980. ## Market data side-by-side | Metric | London | Tokyo| | Region | EMEA | APAC| | Country | United Kingdom | Japan| | Class A rent (USD/sqft/yr) | $121 | $113| | Class A rent (local) | 95 GBP | 50000 JPY| | Vacancy | 8.6% | 4.6%| | Trend | rising | rising| | Prime yield | 4.5% | 3%| | Premium flex / seat / month (USD) | $1,380 | $980| | Submarkets covered | 7 | 6| | Corporate tax | 25% | 30.6%| ## Lease norms | Metric | London | Tokyo| | Typical term | 10 yrs | 5 yrs| | Typical rent-free | 24 mos | 4 mos| | Lease norms | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. | Tokyo leases are typically 5-7 years with a 2-year tenant notice. Standard leases are 'fixed-term' (teiki shakuya) or 'ordinary' (futsu shakuya) — fixed-term is increasingly common for Grade A. Rent is base + common-area maintenance billed separately. Restoration to original (genjo kaifuku) is contractual and significant. Personal seal (jitsuin) requirements apply.| | Tax note | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. | Effective corporate tax rate 30.6% (national + local). Tokyo Metropolitan corporate inhabitant tax adds a meaningful local component.| ## Talent | Metric | London | Tokyo| | Talent index (0–100) | 96 | 84| | Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | The largest single-language white-collar talent pool in the world. Average all-in compensation for senior knowledge workers indexes 84 vs. New York's 100, though English-fluent bilingual talent commands a premium.| ## Transit & commute **London:** The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. **Tokyo:** JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks. ## Top submarkets — London - [**Mayfair & St James's**](/cities/london/mayfair-st-james) — trophy tier · £165/sqft/yr · ≈ $210 PSF/yr USD - [**City of London**](/cities/london/city-of-london) — trophy tier · £95/sqft/yr · ≈ $121 PSF/yr USD - [**Fitzrovia & Soho**](/cities/london/fitzrovia-soho) — prime tier · £110/sqft/yr · ≈ $140 PSF/yr USD ## Top submarkets — Tokyo - [**Azabudai & Roppongi**](/cities/tokyo/azabudai-roppongi) — trophy tier · ¥60,000/tsubo/mo · ≈ $136 PSF/yr USD - [**Marunouchi & Otemachi**](/cities/tokyo/marunouchi-otemachi) — trophy tier · ¥55,000/tsubo/mo · ≈ $124 PSF/yr USD - [**Toranomon**](/cities/tokyo/toranomon) — trophy tier · ¥50,000/tsubo/mo · ≈ $113 PSF/yr USD ## Decision criteria ### Pick by cost Tokyo is the cheaper Class A market on a USD basis. ### Pick by talent depth London has the deeper talent index (96/100 vs 84/100). ### Pick by tax London has the lower headline corporate tax (25% vs 30.6%). Local incentives can change the effective rate materially. ### Pick by lease optionality London typical term is 10 years with 24 months free; Tokyo runs 5 years with 4 months free. ### Pick by transit London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks. ## Run a 4-city comparison Score London, Tokyo and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in London or Tokyo?**** : Tokyo is cheaper on a USD basis: $113/sqft vs $121/sqft. ****Which has better talent depth, London or Tokyo?**** : London indexes higher on talent depth (96 vs 84). ****Which has more sublease availability, London or Tokyo?**** : London carries higher vacancy (8.6% vs 4.6%) and therefore typically more sublease overhang. ****What lease term should I expect in London vs Tokyo?**** : London typical term is 10 years with 24 months rent-free; Tokyo typical term is 5 years with 4 months rent-free. ****How does transit and commuter access compare?**** : London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. Tokyo: JR Yamanote loop plus 13 metro lines connect every Class A address. Shinkansen termini at Tokyo, Shinagawa, and Ueno support inter-city corporate networks. ## Editorial provenance Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/london-vs-tokyo), updated 2026-04-15T00:00:00.000Z.