Xymax Real Estate Institute

RESEARCH REPORTOSAKA CITY | Supply of New Office Space 2018 &Office Stock Pyramid 2018
December 7, 2017

Xymax Real Estate Institute hereby releases its report on the Supply of New Office Space 2018 andOffice Stock Pyramid 2018 covering Osaka City. The volume of new office supply, which is anaggregation of rentable areas of offices that are newly constructed in the coming years (hereinafter,“new supply”), indicates the direct impact on the market balance in the future. The Office StockPyramid is an aggregation of the rentable areas of office buildings in the market and indicates thebreakdown of the office building stock (rentable area and number of buildings) by size of the building(small & medium/large) and by age, as well as the proportion of large and small/medium-sizedbuildings and their age composition.
1 tsubo = approx. 3.3 sq m
SUMMARY OF RESULTSOSAKA CITY | Supply of New Office Space 2018
New supply in 2018–2021 is expected to be an average of 4,000 tsubo per year, less than
one-seventh of the annual average of the past 10 years (31,000 tsubo).

The average new supply of 4,000 tsubo per year for 2018–2021 is one-fortyfifth of average newsupply in Tokyo 23 Wards (180,000 tsubo per year).



The ratio of new supply in Osaka City (2018–2021) to office stock at end of 2017 (new supplyrate) is expected to be approx. 0.6% (average of 0.1％ per year).

OSAKA CITY | Office Stock Pyramid 2018


Office stock at end of 2018 is expected to be 2.78 million tsubo on a rentable area basis, withsmall & medium-sized buildings and large buildings accounting for roughly the same amount:
1.41 million tsubo and 1.37 million tsubo, respectively.

Office stock of Osaka City (2.78 million tsubo) is less than a quarter of Tokyo 23 Wards’ (12.61
million tsubo).

On a number of buildings basis, office stock is 1,704 buildings, of which small & medium-sizedbuildings account for a little less than 90% (1,516 buildings).

The average age of buildings is 31.1 years for the entire stock, 31.5 years for small &medium-sized buildings, and 27.8 years for large buildings. The stock of small & medium-sizedbuildings is slightly older than large buildings.

Compared to 2000, rentable area increased by approx. 0.37 million tsubo (approx. 15%), andnumber of buildings rose by 79 (approx. 5%).

1
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.

RESEARCH REPORT｜Xymax Real Estate Institute

OSAKA CITY | Supply of New Office Space 2018
New supply of office buildings with a gross floor area of more than 3,000 tsubo is expected to be
16,000 tsubo in Osaka City in 2018–2021, an average of 4,000 tsubo per year. This is less than
one-seventh of 31,000 tsubo, the annual average of the past 10 years (2008–2017) (Figure 1). It
also fell far short of 17,000 tsubo, the annual average for 2017–2020, which was released in ourprevious report*1.
Compared to the new supply in Tokyo 23 Wards, Osaka City’s average new supply of 4,000 tsubo peryear for 2018–2021 is one-fortyfifth of Tokyo 23 Wards’ (180,000 tsubo). The new supply rate, whichis the ratio of new supply in Osaka City (2018–2021) to office stock at end of 2017, is 0.6% (averageof 0.1% per year).
*¹ “OSAKA CITY | Supply of New Office Space 2017 & Office Stock Pyramid 2017” released on December 26, 2016
https://www.xymax.co.jp/english/research/release/161226_1.html

Figure 1: Osaka City Supply of New Office Space (Net Rentable Area)(tsubo)70,00066,00060,00052,00050,0002008–2017 Average

2018–2021 Average

31,000 tsubo
per year

4,000 tsubo
per year

52,00034,00040,00032,00036,00030,00023,00024,000

16,00022,00018,00020,00032,00010,00016,00012,00020,000 24,000

10,000
3,000

2008

2009

2010

2011

2012

11,00013,00016,0000

19,0002013

2014

Gross floor area: 3,000–9,999 tsubo

5,000
2015

5,000
0
2016

0
2017

2018

2019

0
2020

2021

Gross floor area: 10,000 tsubo or more

By area, new office space is planned to be supplied in Namba and Yodoyabashi areas (Figure 2).
Figure 2: New Supply by Area (2018–2021)
0

2,000

4,000

6,000

Namba

8,000

10,00012,00014,000(tsubo)

11,0002018Yodoyabashi

5,000

2020

2The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.

RESEARCH REPORT｜Xymax Real Estate Institute

OSAKA CITY | Office Stock Pyramid 2018
The Office Stock Pyramid follows the method of a population pyramid representing the distribution ofage groups by gender. We classified office buildings with a gross floor area of 300 tsubo or more intolarge buildings and small & medium-sized buildings, and compared the stock (rentable area, numberof buildings) by building age. The pyramid indicates the proportion of large buildings andsmall/medium-sized buildings as well as their age composition.

1. Large Buildings and Small & Medium-Sized Buildings
Office stock in Osaka City as of end of 2018 is expected to be 2.78 million tsubo on a rentable areabasis. Small & medium-sized buildings with a gross floor area of less than 5,000 tsubo and large
buildings with a gross floor area of 5,000 or more account for roughly the same amount of stock: 1.41
million tsubo and 1.37 million tsubo, respectively (Figure 3). Office stock of Osaka City (2.78 milliontsubo) is less than a quarter of Tokyo 23 Wards’ (12.61 million tsubo).
The average building age of the entire stock is 31.1 years. The average age of small & medium-sizedbuildings (31.5 years) is slightly older than that of large buildings (27.8 years).
In terms of composition by age, office stock aged 20 years or older accounts for more than 80%
among small & medium-sized buildings, with 1.23 million tsubo aged 20 years or older and 0.18
million tsubo aged less than 20 years.
Among large buildings, stock aged 20 years or older accounts for approx. two-thirds, with 0.9 million
tsubo aged 20 years or older and 0.47 million tsubo aged less than 20 years.
Figure 3: Osaka City Office Stock Pyramid 2018 (Net Rentable Area)
Osaka City

2,78 million tsubo

1,704 buildings

Age: 31.1 years

Small & Medium-sized Buildings

70

Large Buildings(Gross floor area: 300–5,000 tsubo)

65(Gross floor area: 5,000 tsubo or more)

1.41 million tsubo

1,516 buildings

60
Age: 31.5 years
55

1.37 million tsubo

188 buildings

Age: 27.8 years

50
45

0.48 million tsubo (34%)

40

Old seismic standards:

Age (years)

Old seismic standards:

35
Aged 20 years or older:30

1.23 million tsubo (87%)

25
200.38 million tsubo (28%)
Aged 20 years or older:

0.90 million tsubo (65%)

15150,000

Aged less than 20 years:

10Aged less than 20 years:

0.18 million tsubo (13%)

50.47 million tsubo (35%)

100,000

050,000

050,000

100,000

150,000

Net Rentable Area (tsubo)

3The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.

RESEARCH REPORT｜Xymax Real Estate InstituteIn terms of number of buildings, on the other hand, the entire office stock of Osaka City is 1,704
buildings, of which small & medium-sized buildings account for 89% (1,516 buildings) and largebuildings 11% (188 buildings) (Figure 4).
Figure 4: Osaka City Office Pyramid 2018 (Number of Buildings)
Osaka City 1,704 buildings
70

Small & Medium-sized Buildings

Large Buildings

65(Gross floor area: 300–5,000 tsubo)(Gross floor area: 5,000 tsubo or more)

60

1,516 buildings

188 buildings

55

Old seismic standards:

424 buildings (28%)

50

Old seismic standards:

45

50 buildings (27%)

40Aged 20 years or older:30

1,349 buildings (89%)

25Age (years)

35

Aged 20 years or older:

133 buildings (71%)

2015Aged less than 20 years:

10

Aged less than 20 years:

167 buildings (11%)

555 buildings (29%)

0200

150

100

50

050

100

150

200

Number of Buildings

4The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.

RESEARCH REPORT｜Xymax Real Estate Institute
2. Comparison with 2000
Figure 5 is the office stock pyramid as of 2000. Office stock at end of 2000 was 2.41 million tsubo on
a rentable area basis, of which small & medium-sized buildings accounted for 1.35 million tsubo,
slightly more than large buildings, which accounted for 1.06 million tsubo. In terms of age, buildings
aged less than 20 years accounted for a little more than 50% among both small & medium-sized andlarge buildings. On a number of buildings basis, small & medium-sized buildings accounted for 91%(1,472 buildings) of total, while large buildings accounted for 9% (153 buildings).
The age of buildings was 16.5 years for the entire office stock, 16.4 years for small & medium-sizedbuildings, and 17.3 years for large buildings. There was no significant difference between large
buildings and small & medium-sized buildings.
Figure 5: Osaka City Office Stock Pyramid 2000 (Net Rentable Area)
Osaka City 2.41 million tsubo 1,625 buildings

Age: 16.5 years70Small & Medium-sized Buildings

Large Buildings

65(Gross floor area: 300–5,000 tsubo)(Gross floor area: 5,000 tsubo or more)

60

1.35 million tsubo 1,472 buildings Avg. age: 16.4 years

1.06 million tsubo

55

153 buildings Avg. age: 17.3 years

50
Old seismic standards:

45

Old seismic standards:

0.57 million tsubo (42%)

40

0.49 million tsubo (46%)

35

0.55 million tsubo (41%)

30

Aged 20 years or older:
Age (years)

Aged 20 years or older:25

0.46 million tsubo (44%)

201510Aged less than 20 years:

0.80 million tsubo (59%)
150,000

100,000

Aged less than 20 years:

50.59 million tsubo (56%)

050,000

050,000

100,000

150,000

Net Rentable Area (tsubo)

5The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.

RESEARCH REPORT｜Xymax Real Estate InstituteFigure 6 compares 2000 with 2018. Supply is small in Osaka compared to Tokyo, with rentable area
increasing by approx. 0.37 million tsubo (approx. 15%) and number of buildings by 79 (approx. 5%)
between 2000 and 2018.
In terms of building size, small & medium-sized buildings increased by approx. 4% on a rentable areabasis and approx. 3% on a number of buildings basis, while large buildings increased by approx. 30%,and 23%, respectively. Since new supply has been few, the aging of stock has progressed especiallyin small & medium-sized buildings, which have seen more than doubling of the percentage ofbuildings aged 20 years or older, from 41% to 87%. Large buildings are not supplied every year either,resulting in a gradual rise of their age.
Figure 6: Osaka City Office Stock Pyramid 2000 and 2018 (Net Rentable Area)
Osaka City
2018: 2.78 million tsubo

1,704 buildings
70

Small & Medium-sized Buildings(Gross floor area: 300–5,000 tsubo)

2018: 1.41 mln tsubo 1,516 buildings
2000: 1.35 mln tsubo 1,472 buildings

2000: 2.41 million tsubo

1,625 buildings

Large Buildings

65(Gross floor area: 5,000 tsubo or more)60

2018: 1.37 mln tsubo 188 buildings

55

2000: 1.06 mln tsubo 153 buildings

50
45

Mass supply during bubble period

35(As of 2018)30
25

Age (years)

40

20
15
10

Mass supply during bubble period(As of 2000)
150,000

100,000

5050,000

Small & Medium (2000)

050,000
Net Rentable Area (tsubo)
Small & Medium (2018)
Large (2000)

100,000

150,000

Large (2018)

6The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.

RESEARCH REPORT｜Xymax Real Estate Institute

Su Survey Overview
Supply of New Office Space
Date

November 2017

AreaOsaka City

Target properties

Properties with a gross floor area of 3,000 or more and used mainly as officespace (excluding owner-occupied buildings, in principle)

Target data

Rentable office area (tsubo)

MethodPrimarily through publicly available information such as newspaper articles, inaddition to on-site surveys and interviews with operators* The target of this survey is the floor area of buildings to be newly supplied. Note that this is not a complete survey.
* Rentable area represents such area, if published, and if not, the area estimated from gross floor area based on a formula derived fromthe joint development with Naoki Kato Lab, Architecture and Architectural Engineering, Kyoto University Graduate School ofEngineering.
* The new supply estimated in this survey is the estimated amount as of the date of the survey. The value of new supply changes as
information is added and updated on a daily basis.

Office Stock Pyramid
DateNovember 2017

AreaOsaka City

Target properties

Office Stock Pyramid 2018: Office buildings with a gross floor area of 300 tsubo
or more, completed (or scheduled to be completed) in or after 1946, and usedmainly as office space as of end of 2018
Office Stock Pyramid 2000: Office buildings with a gross floor area of 300 tsubo
or more, completed in or after 1946, and used mainly as office space as of end of2000 (includes properties that were demolished between 2001 and 2017)

Target data

The number and rentable office area (tsubo) of large and small & medium-sized
office buildings.
Large buildings: Gross floor area of 5,000 tsubo or more
Small & medium-sized buildings: Gross floor area of 300–4,999 tsubo* The collected data were aggregated from properties whose date of construction is known based on publicly available information suchas newspaper articles and for-rent information (including past information). Owner-occupied buildings have been excluded, in principle.
* The data of reconstructed or demolished buildings have been collected and reflected to the extent possible.
* Figures of this survey are the aggregated amount as of the date of the survey. Since information is added and updated on a daily basis,any difference from figures published last year is not necessary due to new construction or demolition.
* The office stock in 2018 includes buildings whose scheduled completion date is known as of November 2017.
* Rentable area represents such area, if published, and if not, the area estimated from gross floor area based on a formula jointly
developed with Naoki Kato Lab, Architecture and Architectural Engineering, Kyoto University Graduate School of Engineering.
* “Old seismic standard” buildings refer to buildings constructed with the design method before the enforcement of the Revised Seismic
Design Method of 1981. In this report, they refer to buildings completed in and before 1981.

7
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness.
This report may not be reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2018 Xymax Real Estate Institute Corporation. All rights reserved.