Xymax Real Estate Institute

RESEARCH REPORT

Metropolitan Areas Office Demand Survey Autumn 2023
<Summary Report>
More than 70% of companies continue to embrace hybrid work after thepandemic, leading to a trend toward office expansion.

January 18, 2024

What impact do the long COVID-19 pandemic and its end have on the work styles at Japanese companies
and office demand? Since autumn 2016, Xymax Real Estate Institute (“Xymax REI”) has been conducting a semiannual questionnaire survey of companies across Japan on their office use and employee work styles tocontinuously analyze their relationship with office demand. We have released a report on the results of the 15thsurvey. This Summary is an excerpt of the report.

Main Findings
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In terms of changes in office size over the past year, the percentage of “expansion (actual +potential)” rose after bottoming out in the Spring 2021 survey, with the DI, the difference
between the expansion total and the downsizing total, in positive territory at 4.8 (Figure 1).
In terms of future office size (up to 2–3 years ahead), 16.8% of the companies replied that they“want to expand,” outnumbering those that “want to downsize” (7.5%) (Figure 2). However,the percentage has not returned to pre-pandemic (before the Spring 2019 survey) levels.
As for how often employees come to the office, the percentage of “100% (come to office fulltime)” was 25.2%, roughly unchanged from the Spring 2023 survey, which was conducted
immediately after COVID-19 was downgraded to a Class 5 disease (Figure 3). Regarding future
intentions, “100% (come to office full time)” was 25.1%, with the remaining 74.9% intending tocontinue implementing telework. This suggests that telework will take root as a permanent work
style even after the end of the pandemic.
When asked if workplace strategies are important in retaining talent and human capitalmanagement, more than 70% replied “important” or “somewhat important” (Figure 4-1).
40.8% of companies were “interested” in providing a workplace in the provinces (areas otherthan the current location of the head office) (Figure 5-1). Especially popular initiatives were“develop/use a workation facility for temporary work at resorts, etc.” (50.7%) and “use satellite office

services in the provinces (temporarily or permanently)” (47.7%) (Figure 5-2).
The availability of a work-from-home policy was 44.9%, decreasing after its peak in the Autumn
2021 survey (Figure 6). The availability of a satellite office was 30.9% and increasing each year.

<Survey Overview>
Survey period:
Target respondents:

November 15–26, 2023
48,049 companies in total that include the following:・Tenants of office buildings managed by the Xymax Group・Companies subscribing to ZXY, a satellite office service for corporate customers
・Client companies of XYMAX INFONISTA Corporation
Number of valid answers: 1,705 (Aggregated in office units; therefore, answers from different offices of thesame company are treated as separate answers.)
Geographical coverage:
Nationwide (Tokyo, Osaka, Aichi, Fukuoka, Kanagawa, Saitama, Chiba, and otherprefectures)
Survey method:
EmailMetropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or c ompleteness. This report may not be
reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institutetopic 1
In terms of changes in office size over the past year, the percentage of “expansion (actual +potential)” rose after bottoming out in the Spring 2021 survey, with the DI, the difference
between the expansion total and the downsizing total, in positive territory at 4.8 (Figure 1). The
downsizing trend that has persisted since the COVID-19 pandemic appears to have subsided andshifted to an expansionary phase.
Figure 1: Change in Office Size over Past Year (Actual + Potential)

Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institutetopic 2In terms of future office size (up to 2–3 years ahead), 16.8% of the companies replied that they“want to expand,” outnumbering those that “want to downsize” (7.5%) (Figure 2). When
compared over time, the percentage of “want to expand” has also increased since bottoming out
in the Spring 2021 survey. However, the percentage has not returned to pre-pandemic (before theSpring 2019 survey) levels, which is probably due in part to the fact that hybrid work has takenroot.
Figure 2: Future Change in Office Size

Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institutetopic 3
When comparing the current coming-to-office ratio (actual) over time, the percentage of “100%(come to office full time)” has leveled off at 25.2%, after rising to its highest level since theCOVID-19 pandemic, 25.7%, in the Spring 2023 survey, which was conducted immediately after
COVID-19 was downgraded to a Class 5 disease (Figure 3).
Regarding future intentions, “100% (come to office full time)” was 25.1%, with the remaining
74.9% intending to continue implementing telework. This suggests that telework will take root asa permanent work style even after the end of the pandemic. The average figure hardly differs
between the actual (70.8%) and the intention (71.0%), indicating that the current state is alreadyclose to the intended state.
Figure 3: Actual and Intended Coming-to-Office Ratio (Comparison over Time)

Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institutetopic 4
When asked if workplace strategies* are important in retaining talent and human capitalmanagement, more than 70% of the companies replied they were “important” or “somewhatimportant” (Figure 4-1).
*Strategies for the entire workplace, including not only the development of the main office environment but also the establishment oftelework locations

When we asked each group of respondents the initiative of interest for the main office, the groupthat considered workplace strategies to be “important” tended to have a higher interest in each
initiative (Figure 4-2). In contrast, the group that considered workplace strategies as “notimportant” had a higher percentage of “maintain status quo” for the main office. This indicatesthat companies recognizing the importance of workplace strategies are more interested inadvancing the functions of their main office.
Figure 4-1: Attitude Toward Workplace Strategies in Retaining Talent and Human Capital Management

Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute
Figure 4-2: Initiative of Interest for the Main Office – By Attitude Toward Workplace Strategies

Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

6RESEARCH REPORT｜Xymax Real Estate Institutetopic 5
40.8% of the companies were “interested” in providing a workplace in the provinces (areas otherthan the current location of the head office) (Figure 5-1).
Especially popular initiatives were “develop/use a workation facility for temporary work at resorts,etc.” (50.7%) and “use satellite office services in the provinces (temporarily or permanently)”(47.7%), indicating that roughly half of the companies interested in providing a workplace in theprovinces have interest in these initiatives (Figure 5-2).
Figure 5-1: Interest in Initiatives for Providing Workplaces in the Provinces

Figure 5-2: Initiative of Interest for Providing Workplaces in the Provinces

・Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institutetopic 6
The availability of a work-from-home policy has been decreasing since its peak in the Autumn
2021 survey and was 44.9% this time (Figure 6). On the other hand, the availability of a satellite
office has increased each year and was 30.9% this time.
Figure 6: Availability of Work-from-Home Policy and Satellite Office

The percentage mix in the charts contained in this report is rounded to the first decimal place and, therefore, may not add up to 100%.

For further inquiries, please contact below:Xymax Real Estate Institutehttps://soken.xymax.co.jp | E-MAIL: info-rei@xymax.co.jp

Metropolitan Areas Office Demand Survey Autumn 2023 <Summary Report>
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 © 2024 Xymax Real Estate Institute Corporation. All rights reserved.

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