Brookfield Asset Management is finalizing a ¥300 billion ($1.9 billion) acquisition of Dentsu Group Inc.'s Tokyo headquarters, according to people familiar with negotiations. The transaction would rank among Japan’s largest commercial property deals this year, reflecting persistent demand for prime Tokyo office assets despite global real estate headwinds.

The deal centers on Dentsu’s 32-story tower in the Shiodome district, a hub for multinational corporations. $1.9 billion represents a premium valuation for the building, which houses the advertising giant’s global headquarters. Dentsu is expected to lease back portions of the space, maintaining operations while monetizing its real estate holdings.

Brookfield’s move signals continued confidence in Tokyo’s office market, where vacancy rates remain below 5% in prime areas. The Canadian firm has deployed over $8 billion in Asia-Pacific commercial real estate since 2020. For Dentsu, the sale follows a broader corporate restructuring that included 12.5% staff reductions last year.

The transaction underscores Tokyo’s appeal to institutional investors seeking stable yields, with the yen’s depreciation making Japanese assets comparatively affordable for foreign buyers. Closing terms are being negotiated, with an announcement possible within weeks.