Renting an Office in Japan

Looking forward to renting an office in Japan?  Thinking about a quality environment that best fits to your need?

Let us walk you through the wise ways of renting an office in Japan. The physical appearance and location of your business building also determines the possible build-up of your company in the future.

Today, renting an office in Japan is a norm or a natural typical setup. A starting entrepreneur hardly acquires a business venue of his own, thus, decides to rent an office. There is nothing wrong with that. In fact, popular business tycoons were once renters of an office. They are even leaseholders up to now, but progressively grow and grow more their companies.

When renting an office in Japan, experts highly recommend to consider the following.

  • Cost. Make sure that the expense to go to the office rent will not rock your business revenues. Ask yourself, will it bring the company’s money out of budget?
  • Accessibility. Is the location convenient for your costumers’ top visit? If not, then you better look for another. Otherwise, you are just putting your investment into a total waste.
  • Convenience for employees. Remember that quality employees do not sacrifice their comfort for the sake of having job. Seriously consider this when renting an office in Japan.
  • Safety and security. Life first before anything else. Seriously ensure that the office you will be staying can give you comfort and is nor life-threatening.

It is also very important to know how much budget you need to allocate for the office in Japan you want to rent. Be guided that Tokyo office rents range from US$4 – US$12 per square foot (US$180 – US$540 per square meter) depending on the building type and location.

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In order not to be well guided of your rights when renting an office in Japan, you need to consider the following guidelines:

  • A refundable deposit of 6 – 12 months’ rent;
  • A non-refundable deposit of 1 or 2 months’ rent ;
  • The lessee pays the real-estate agent’s commission of 1 month’s rent;
  • Office lease agreement term of 2 years;
  • The lessee can end the lease with 3 – 6 months’ notice;
  • If the lessee does not end the lease, it will automatically extend every 2 years for a further 2 years, with a 1 month’s rent renewal fee payable at each extension;
  • The lessee must return the office space to its original condition upon vacation using an approved contractor;
  • The landlord can deduct various cleaning and refurbishment amounts from the non-refundable deposit; and
  • The landlord usually demands a personal guarantor, who must live in Japan, to guarantee the lessee.

Therefore, it takes a wise mind to savor the money spent to office rent. It is better to be ready than to be sorry.

You can have many choices of office spaces if you look forward to renting an office in Japan, which range from small to large business areas you want or need.

Renting an Office in Japan FAQ

What are the things to consider if I want to rent an office in Japan?

Consider the cost, accessibility, convenience for your employees, and safety and security.

Can I end the lease anytime I want?

No. The lessee can end the lease with 3-6 months’ notice.

Is it ok for me to just rent an office and not have my own?

Yes. It is very normal for entrepreneurs to rent offices in Japan. Many growing businesses nowadays still  rent office spaces.

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

Tokyo office rents may have dropped, but office space in central Tokyo still costs from US$4 – US$12 per square foot (US$180 – US$540 per square meter) per month, sometimes much more in Tokyo’s prestigious glass-sided buildings.

How can I lessen the lease cost when renting an office in Japan?

  1. Simultaneously negotiate terms on 2 or 3 different locations and contract the one where you get the best terms.
  2. Negotiate hard to:
    • Eliminate the non-refundable deposit.
    • Eliminate any guarantee insurance fee.
    • Reduce the refundable deposit.
    • Receive the first 3 months rent-free.
    • Reduce the monthly rent.
    • Reduce the amount of refundable deposit the landlord keeps at the end of the lease.
    • Extend the lease term past 2 years.
  3. Rent the minimum space your Japanese office needs.
  4. Rent in a lower-cost area away from Tokyo’s trendy fashionable areas.
  5. Rent an office in an older, less prestigious, building.
  6. Rent an office that is not close to a railway station.

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