How Much Does It Really Cost to Open an Office in Tokyo?
Updated: 6 days ago
The rent is only the beginning. Here’s what foreign companies should budget for when setting up an office in Tokyo.
Last updated: September 2026
Cost to Open an Office in Tokyo: What You Really Need to Budget
Understanding the cost to open an office in Tokyo is essential before committing to a property. The monthly rent is only one part of the budget. Security deposits, brokerage fees, fit-out costs and other expenses can significantly increase the amount you need to spend before your office is operational.
A Tokyo office can require a significant amount of cash before your team even moves in: security deposits, brokerage fees, common service charges, guarantees, furniture, IT infrastructure and potentially substantial fit-out costs.
For foreign companies entering Japan for the first time, there is another layer of complexity: the building owner may assess the company, its guarantor and its business structure before accepting the lease.
So the right question is not:
“How much is the rent?”
It is:
“How much will it cost us to open and operate this office?”
Start with the monthly rent — but don't stop there
Let's take a simple example.
Imagine you find a 70 m² office in central Tokyo for ¥1,000,000 per month.
At first glance:
¥1,000,000 × 12 = ¥12,000,000 per year
But that does not mean you need ¥12 million to get started.
You may also need to consider:
Security deposit
Brokerage fee
Common service fees
Guarantee company fees, where applicable
Insurance
Furniture
Internet and telecommunications
Office equipment
Interior work and fit-out
Moving costs
Potential restoration costs at the end of the lease
JETRO's current model case for a 70 m² Tokyo office uses a security deposit of approximately 10 months' rent and a brokerage fee equivalent to one month's rent. These are model assumptions rather than universal rules, and actual terms vary considerably by property.
Tokyo Metropolitan Government's Business Development Center likewise notes that foreign companies commonly need to consider security deposits, guarantors, common service fees and, in some cases, key money.
The security deposit can be a major part of your initial cash requirement
This is one of the first things foreign companies should understand.
For some Tokyo offices, the security deposit can represent many months of rent.
Using our ¥1,000,000/month example, a 10-month deposit would mean:
¥10,000,000 before considering the rent itself and other costs.
That doesn't necessarily mean the money is permanently lost. Its treatment depends on the lease terms, including deductions or non-refundable portions where applicable.
But from a cash-flow perspective, it matters enormously.
A company comparing:
Office A — ¥1,000,000/month
with:
Office B — ¥1,150,000/month
should not automatically assume Office A is cheaper.
The initial deposit, fit-out requirements and other contractual conditions may change the calculation substantially.
Brokerage is only one part of the transaction
JETRO's current model case uses a real-estate brokerage fee equivalent to approximately one month's rent for its example Tokyo office.
But the exact fee structure depends on the transaction and the parties involved.
For a company entering Japan, it is therefore useful to look at the whole occupancy cost, rather than focusing on one line item.
What about the fit-out?
This is where two offices with the same rent can become completely different projects.
One space may already be close to what you need.
Another may be an empty shell requiring:
partitions
flooring
lighting
meeting rooms
reception
electrical work
air-conditioning adjustments
network infrastructure
furniture
JETRO notes that office renovation costs depend heavily on the building's specifications and the desired layout. Its model guidance gives a basic example starting at around ¥10,000 per m² for simple partition work, but a full fit-out can be considerably more depending on the scope.
This is why seeing the space is not enough.
You also need to understand what the building will allow you to change and what condition the premises must be returned in later.
The landlord may also look at your company
For an established Japanese company, leasing an office can be relatively straightforward.
For a newly established Japanese entity backed by a foreign parent, the situation can be different.
The building owner may review the company's documents and financial situation, and a guarantor may be required depending on the property and circumstances.
Tokyo's Business Development Center specifically identifies the lack of a Japanese guarantor as one of the challenges foreign companies can face when renting an office. A guarantee company can sometimes be used as an alternative.
This means that finding a property you like does not necessarily mean you can lease it.
The suitability of the property and the suitability of the tenant both matter.
Your office can also matter for your business setup
This is an important point that is easy to overlook.
For certain immigration and business-setup situations, the characteristics of the office itself can matter.
JETRO explains that applicants for the Business Manager status generally need an exclusive, physical office independent from other companies. A purely virtual office or certain shared arrangements may create problems depending on the circumstances.
So before signing a lease, a foreign entrepreneur should consider not only:
“Can we afford this office?”
but also:
“Is this office appropriate for what we are trying to establish in Japan?”
This is one reason why office selection should ideally happen early in the planning process, rather than being treated as the final administrative step. JETRO specifically recommends beginning the office search early because an office address can be needed for several company-setup procedures.
A simple way to think about your initial budget
Instead of starting with:
Monthly rent × 12
think about your project in four buckets:
A. Securing the property
Initial rent
Security deposit
Brokerage
Guarantee-related costs
Other lease-related fees
B. Preparing the space
Interior work
Partitions
Furniture
IT and telecommunications
Signage
C. Starting operations
Insurance
Utilities
Moving
Equipment
Administrative costs
D. Planning for the exit
Restoration obligations
Removal of furniture and equipment
Potential reinstatement costs
The exact amounts vary enormously from one property to another.
That's why a cheap rent does not necessarily mean a cheap office.
The question we recommend asking before choosing an office
Before falling in love with a property, ask:
What will this space cost us to occupy, operate and eventually leave?
Then look at:
Total initial cash requirement
Monthly occupancy cost
Fit-out requirements
Lease conditions
Deposit structure
Guarantee requirements
Building restrictions
Restoration obligations
Suitability for your business structure
This gives you a much more realistic picture than comparing rents alone.
Conclusion
Opening an office in Tokyo is not simply a question of finding the right monthly rent.
For an international company, the right office is the one that fits the business, the budget, the timeline and the practical requirements of establishing a presence in Japan.
At Tokyo Immo, we help international companies understand their requirements, identify suitable properties and navigate the practical side of finding an office in Tokyo. When a project requires additional expertise, we can also connect clients with trusted local specialists through our network.
Sources
JETRO — Cost Estimation: Setting Up Business in Japan
JETRO — Necessity of Having an Office
Tokyo Metropolitan Government — Invest Tokyo, Business and Lifestyle Information
