How much does it cost to rent an office?
Comparison with serviced offices and approximate market rates by area and size

• Update:2023/11/14

In order to have a healthy balance sheet, it is important to reduce fixed costs, including office rent. When considering starting a business, many people worry about rent and other office maintenance costs because they will need an office unless it is a home office.

In this article, we will compare rental office space and office space for rent and explain the price quotes. The article will also give you an idea of the market rates for different areas and sizes, so you can use it as a reference when considering office costs. Please read this article if you are a prospective entrepreneur or if you would like to review your office expenses.

How much does it cost to rent an office? Compare with renting an office

In addition to the initial cost and rent, renewal and restoration fees are required to rent and maintain an office. In addition, depending on the property, there may be additional charges for mail storage, Internet access, conference room use, reception room use, furniture rental, etc.

Below is a comparison of rental and leasing office rates in terms of initial cost, rent, and renewal and restoration fees.

Initial cost

When renting an office space, like renting a house, a deposit and key money are basically required, and a lump sum initial cost is incurred.

A “security deposit” is a deposit paid in advance to cover the cost of restoring the apartment to its original condition (repairs, including cleaning costs) when the tenant moves out. By its nature, if the restoration costs are less than the security deposit, the amount deducted will be returned to the tenant. In some cases, on the contrary, you may have to pay an additional amount.

Generally, the security deposit is equivalent to one month’s rent. However, please note that in some cases, if the property is more expensive than the market rate, you may be asked to pay a security deposit of one or two months’ rent, which is a larger burden. In some cases, instead of key money, the security deposit is equivalent to 3 to 5 months’ rent.

Unlike a security deposit, a “key money” is paid to the landlord as a thank-you for renting the apartment to you. It was a custom that was established at a time when rental properties were very valuable, and although the number of properties with no key money is increasing, there are still many properties that still require key money.

As mentioned above, to rent office space, many companies must prepare six months to a year’s rent for a security deposit and key money combined, which is a considerable amount of money to be prepared at the time of starting a business. This is especially burdensome in the period immediately after starting a business and when business performance is not stable, and is a source of uncertainty for income and expenditure planning.

It is not uncommon for serviced offices to have low and even no security deposit and key money required. To reduce costs and ease the burden of starting a business, we recommend using a serviced office. Tensho Office requires only a “contract fee + first month’s rent and common service fee” to get started, and neither a security deposit nor key money is required.

Rent

For serviced offices in Tokyo, monthly rent is often in the hundreds of thousands of yen, and it is rare to find a property for less than 100,000 yen. On the other hand, with serviced offices, it is highly likely that you can find properties for less than 100,000 yen even in popular areas of Tokyo, and there are even serviced offices in the 30,000-50,000 yen range.

In addition to initial costs such as deposit and key money, monthly fixed rent is much lower than for rented offices.

Renewal and restoration fees

The initial cost of renting an office is not only the deposit and key money. In addition, you will need to purchase office furniture, office appliances, office automation equipment, and in some cases, interior work, which can also add to the cost. If you wish to continue using the property after the contract period ends, a renewal fee will also be charged. In addition, you will also have to pay for restoring the property to its original condition when you move out, even though this will be allocated from the security deposit.

Some rental offices do not charge any renewal or restoration fees, reducing the burden of renewal and move-out fees.

Hassle when moving out

Since serviced office space is leased under a “real estate lease agreement,” interior work and cancellation procedures are required when vacating the space.

On the other hand, serviced office contracts are generally service use contracts or facility use contracts, and in most cases, the Land and Building Lease Law and the obligation to restore the space to its original condition do not apply to real estate lease contracts. Termination procedures are relatively simple, and in many cases, tenants can move out immediately without having to go through any troublesome procedures.

Serviced Office Rates by Area

The initial cost, monthly fee, and rental price of serviced office space varies depending on the area. Here we introduce the characteristics of each area and serviced office fee rates for eight areas in Tokyo: Chiyoda, Chuo-ku, Taito-ku, Minato-ku, Toshima-ku, Bunkyo-ku, Shinjuku-ku, and Shibuya-ku. Please refer to this information when starting a business, relocating an office, or expanding your business.

Serviced office rates in Chiyoda Ward range from about 45,000 yen

Chiyoda Ward includes the Marunouchi area, one of Japan’s leading business districts, with the Imperial Palace at its center; the Kasumigaseki area, where government offices are concentrated; and the Jimbocho and Ochanomizu areas, which are home to many university campuses. Tokyo Station, a terminal station for the Shinkansen bullet train and conventional train lines, is also located in Chiyoda Ward, making it a very convenient area in terms of transportation.

【Rates for Chiyoda-ku, Tokyo】

【Rental Rates for Tensho Office in Chiyoda-ku, Tokyo】

Rates for Tensho offices in Chiyoda-ku are similar to or slightly lower than the market serviced office rates in Chiyoda-ku. Some offices, such as Suidobashi and Ochanomizu, can be contracted at rates lower than the market rate.

Serviced office rates in Chuo Ward range from about 43,000 yen

Chuo City is home to business hubs such as Yaesu and Nihombashi, where many companies have their headquarters, Ginza, one of Japan’s leading commercial districts, and the rapidly developing Harumi area, which retains a traditional downtown atmosphere. The proximity to Tokyo Station and the many JR and Tokyo Metro lines provide extremely good access to nearby business partners and customers.

【Rates for Chuo-ku, Tokyo】

【Rental Rates for Tensho Office in Chuo-ku, Tokyo】

While Chuo Ward is conveniently located in the center of business and commerce, the price of serviced office space is not that expensive. In the case of Tensho Office, some offices can be rented for as little as 20,000 yen.

Serviced office rates in Taito Ward range from about 39,000 yen

Taito City is home to the Ueno area with many cultural facilities such as the Tokyo National Museum and the National Museum of Nature and Science, and the Asakusa area with many downtown tourist attractions such as Sensoji Temple. Business areas with many offices are quiet and calm, and the area has good access to the northern Kanto and Tohoku regions.

【Rates for Taito-ku, Tokyo】

【Rental Rates for Tensho Office in Taito-ku, Tokyo】

Compared to other wards in Taito City, the market price for serviced office space in Taito City is slightly lower. In particular, we recommend Tensho Office Ueno Suehirocho, which is conveniently located a 3-4 minute walk from a nearby station, yet offers lower rates than the market.

Serviced office rates in Minato Ward range from about 50,000 yen

Minato-ku has many business districts such as Roppongi, Akasaka, Azabu, Shimbashi, and Hamamatsucho, where foreign and IT companies gather. The area is also home to fashionable and exclusive areas such as Omotesando, Aoyama, and Shirokane, which are often used for company branding. Another major advantage of this area is its easy accessibility from all areas of Tokyo.

【Rates for Minato-ku, Tokyo】

【Rental Rates for Tensho Office in Minato-ku, Tokyo】

Prices in Minato-ku vary particularly widely depending on the area and property, with the market price for serviced office space ranging from 50,000-143,000 yen. Tensho Office’s monthly fee is slightly lower than the market rate, so you can rent with peace of mind.

Serviced office rates in Toshima Ward range from about 40,000 yen

Centered on the subcenter of Ikebukuro, Toshima Ward is known as a diverse area with the Sugamo area popular among the elderly and an area where many students gather. The area ranges from upscale areas such as Ikebukuro East Exit to areas bustling with numerous small businesses such as Ikebukuro West Exit, allowing you to choose the rental office service that best fits your company’s atmosphere.

【Rates for Toshima-ku, Tokyo】

【Rental Rates for Tensho Office in Toshima-ku, Tokyo】

The cost of renting an office in Toshima-ku is somewhat lower than in other wards. For example, an office like Tensho Office, which is conveniently located within a 5-minute walk of Ikebukuro and Otsuka stations, can be rented for around 30,000 yen per month.

Serviced office rates in Bunkyo Ward range from about 44,000 yen

Many people may have a strong image of Bunkyo-ku as an educational district where several universities, including the University of Tokyo and Ochanomizu University, have campuses. Since there are also many medical universities and university hospitals, many medical-related companies and publishing companies dealing with medical books and other specialized books can be found in the area. Although there is no large business district, the peaceful environment and convenient transportation make it a good choice for those who want to quietly concentrate on their work.

【Rates for Bunkyo-ku, Tokyo】

【Rental Rates for Tensho Office in Bunkyo-ku, Tokyo】

The initial and monthly fees for Tensho Office Korakuen in Bunkyo-ku are almost the same as the market rate for serviced offices in Bunkyo-ku. It is conveniently located within a 30-second walk from the nearest station and within walking distance of Suidobashi Station, and is also well-received for its excellent cost performance.

Serviced office rates in Shinjuku Ward range from about 64,000 yen

Shinjuku City includes the Shinjuku Station area, which is home to the Tokyo Metropolitan Government Office and many other public offices and high-rise buildings, and the Takadanobaba and Waseda areas, which are crowded with students from many universities. With a large-scale redevelopment project underway, the city has high expectations for further development in the future.

【Rates for Shinjuku-ku, Tokyo】

【Rental Rates for Tensho Office in Shinjuku-ku, Tokyo】

Although the market price of serviced office space in Shinjuku is slightly higher, it is less expensive than before due to the Corona Disaster and the impact of redevelopment projects. Tensho offices can be rented at a lower cost than the market rate, so those who expect convenience of transportation and development due to redevelopment should consider using the Shinjuku area.

Serviced office rates in Shibuya Ward range from about 58,000 yen

Shibuya Ward is famous for its large downtown area that attracts the younger generation, but in recent years, office functions have also been enhanced. Convenience is also excellent as several train lines, including the Yamanote Line, run through the area. One of the attractions of this area is that there are many stylish offices with stylish interiors, exteriors, and facilities, as well as small- and medium-sized office spaces, and the addresses have brand value.

【Rates for Shibuya-ku, Tokyo】

【Rental Rates for Tensho Office in Shibuya-ku, Tokyo】

Since Shibuya Ward is a very popular area among Tokyo’s 23 wards, the market price of monthly serviced office space is also on the rise. On the other hand, even in a popular location like Shibuya Ward, there are many reasonably priced serviced offices like Tensho Office. Choose the office that best suits your company by considering convenience, functionality, design, and options.

By size! Tensho Office Rental Rates

In addition to transportation accessibility, functionality, and design, the size of the office space has a significant impact on its accessibility. If the space is too small for the number of people, there will not be enough room to work, while the cost will increase with the size of the space, so it is important to choose the right space. The following is a list of Tensho Office’s serviced office rates by size.

~5 sq.m. from 30,000 yen

Although the number of people who can use this service is limited, it is available from the 30,000 yen range even in central Tokyo.

*Includes new contract only price. *Property information changes daily.

• Tensho Office Ikebukuro Nishiguchi ANNEX 4.41㎡ Rental Rents 82,500 yen
• Tensho Office Azabujuban 2.12㎡ Rental Rents 48,400 yen
• Tensho Office Akasaka ANNEX 2.42㎡ Rental Rents 52,800 yen
• Tensho Office Kanda 4.41㎡ Rental Rents 83,600 yen
• Tensho Office Tokyo Station 1.88㎡ Rental Rents 30,800 yen
• Tensho Office Higashi-Shinjuku 3.12㎡ Rental Rents 57,200 yen
• Tensho Office Shimbashi Akarenga Street 2.28㎡ Rental Rents 52,800 yen
• Tensho Office Yoyogi 1.73㎡ Rental Rents 33,000 yen
• Tensho Office Takadanobaba 2.16㎡ Rental Rents 42,900 yen
• Tensho Office Otsuka 1.70㎡ Rental Rents 33,000 yen
• Tensho Office Minami Aoyama 4.60㎡ Rental Rents 82,500 yen

From 80,000 yen for 5 to 10 sq.m.

Offices of 5 sq.m. or more are suitable for about 3 persons. Minami Aoyama and Shinjuku are also in the 80,000 yen range.

*Includes limited price for new contracts. *Property information changes daily.

• Tensho Office Ikebukuro Nishiguchi ANNEX 5.93㎡ Rental Rents 95,700 yen
• Tensho Office Azabujuban 7.27㎡ Rental Rents 99,000 yen
• Tensho Office Suidobashi 5.20㎡ Rental Rents 93,500 yen
• Tensho Office Akasaka ANNEX 6.47㎡ Rental Rents 99,000 yen
• Tensho Office Yoyogi ANNEX 5.36㎡ Rental Rents 90,200 yen
• Tensho Office Akihabara Manseibashi 5.57㎡ Rental Rents 102,300yen
• Tensho Office Ochanomizu 6.24㎡ Rental Rents 93,500yen
• Tensho Office Shinjuku 8.06㎡ Rental Rents 84,700 yen
• Tensho Office Ikebukuro Nishiguchi 8.34㎡ Rental Rents 126,500 yen
• Tensho Office Minami-Aoyama 5.80㎡ Rental Rents 82,500 yen
• Tensho Office Akasaka 7.58㎡ Rental Rents 102,300 yen
• Tensho Office Shimbashi Gochome 7.37㎡ Rental Rents 132,000yen

10-15 sq.m. is over 110,000 yen

A minimum of 10 square meters can accommodate 4 to 8 people, but the rent will be more than 110,000 yen.

*Includes limited price for new contracts. *Property information changes daily.

• Tensho Office Azabujuban 11.78㎡ Rental Rents 151,800 yen
• Tensho Office Akasaka ANNEX 12.75㎡ Rental Rents 165,000 yen
• Tensho Office Shimbashi Akarenga Street 10.11㎡ Rental Rents 154,000 yen
• Tensho Office Shinjuku 11.63㎡ Rental Rents 115,500yen
• Tensho Office Otsuka 13.80㎡ Rental Rents 132,000 yen
• Tensho Office Akasaka 14.18㎡ Rental Rents 198,000 yen
• Tensho Office Tamachi 13.61㎡ Rental Rents 187,000 yen

15 sq.m. to over 200,000 yen.

IIn the 23 wards of Tokyo, it is not uncommon for rental offices to cost 200,000 yen or more for this size.

*Includes limited price for new contracts. *Property information changes daily.

• Tensho Office Azabujuban 23.39㎡ Rental Rents 253,000 yen
• Tensho Office Suidobashi 29.00㎡ Rental Rents 319,000 yen
• Tensho Office Akasaka ANNEX 20.61㎡ Rental Rents 253,000 yen

Details of serviced office fee breakdown

When choosing a serviced office, pay attention not only to the monthly rent, but also to the initial cost and various optional fees. In some cases, the rent may appear low at first glance, but in reality, support fees, cleaning fees, and equipment rental fees are added. It is important to know the breakdown of fees and choose an office that is affordable with no extra costs.

Below is a breakdown of the fees involved in renting an office space.

Initial cost

The initial cost of signing a serviced office contract generally breaks down as follows

• Contract Deposit
• Deposit and key money
• Guarantee Fee
• First month’s rent
• Administration fee
• First month cleaning fee
• Screening fee
• Support fee

In the case of Tensho Office, the only initial costs incurred are the contract fee and the first month’s rent and common service fee. Therefore, limited funds can be used effectively.

Monthly Fee

Monthly fees for serviced offices generally break down as follows.

• Rent
• Common service fee
• Mail storage fee
• Internet usage fee
• Meeting room charge
• Reception room charge
• Furniture rental fee

At Tensho Office, the only running costs incurred are rent and common service fees, so there is no need to worry about extra expenses.

Tensho Office does not charge extra fees

Tensho Office does not charge initial and running costs as well as relocation fees, annual fees, renewal fees, restoration fees, and cleaning fees. Since no extra costs are required for all move-in, use, and move-out, our rates are lower than the market rate.

Summary

The initial cost and rent of renting office space in central Tokyo is high, and is a major monthly burden. In addition, renewal fees at the time of contract renewal, restoration costs when vacating, and other expenses are incurred in order to continue renting the space.

Tensho Office’s office space is available at a relatively affordable price in the heart of Tokyo, and the cost is low compared to other office space rental rates. You can also rent an office in Minato-ku, Chuo-ku, or Chiyoda-ku, Tokyo. Tensho Office requires only a contract fee plus the first month’s rent and common service fee, making both initial and running costs low.