Japan Data
Economy
Jul 15, 2025
Despite the end of the pandemic, the number of Japanese companies moving their head offices from Tokyo is on the rise.
The results of a survey conducted by Tokyo Shōkō Research shows that 16,271 Japanese companies relocated their head office from Tokyo to a different prefecture in fiscal 2024, which is an 18.7% increase over the previous year. Among these companies, 20% had a capitalization of at least ¥10 million, while 80% were below that level. The breakdown by industry shows that relocations were particularly prevalent in the service, information, and retail sectors. One reason for this is that such businesses are easier to relocate than manufacturing companies that operate factories.
By prefecture, Tokyo had the largest net outflow of companies, with 1,158 more companies moving out than the number of companies moving in. This is a major increase over the net outflow of 631 during the previous fiscal year. Meanwhile, neighboring Saitama enjoyed a net inflow of 250 companies, which was the highest figure nationwide, followed by Chiba and Kanagawa. This indicates the trend of companies moving out of central Tokyo for nearby prefectures.
Commenting on the survey results, a representative from Tokyo Shōkō Research noted that, “High rents in Tokyo are making it difficult for businesses to cover costs through their earnings. Even now that the pandemic years are behind us, companies continue to relocate out of central Tokyo and allow employees to work remotely.” The representative added that although Tokyo still offers benefits in terms of demand for goods and services as well as its large pool of talent, intense competition with rivals was driving “more and more small and medium-sized businesses to develop new markets in other parts of Japan and secure regional talent.”
Top Prefectures for Net Inflow of Head Offices or Head Office Functions
Created by Nippon.com based on data from Tokyo Shōkō Research.
Top Prefectures for Net Outflow of Head Offices or Head Office Functions
Created by Nippon.com based on data from Tokyo Shōkō Research.
By region, Kyūshū had the highest net inflow, at 148 companies, largely driven by the new factory of the Taiwan Semiconductor Manufacturing Company (TSMC) located in Kumamoto Prefecture. This development led to an inflow of manufacturing and ICT companies across the entire Kyūshū region.
The Chūbu region, where manufacturing powerhouses like Toyota and Suzuki are located, was a close second, with a net inflow of 147 companies.
Data Sources
(Translated from Japanese. Banner photo © Pixta.)
Tokyo
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