Xymax Real Estate Institute

RESEARCH REPORT

Office Stock Pyramid 2016
January 29, 2016
Xymax Real Estate Institute compiled the Office Stock Pyramid 2016 of Tokyo 23 Wards (Figure 1). This pyramid
chart, similar to the population pyramid representing the distribution of age groups and gender, shows a
distribution of large buildings and small and medium buildings in Tokyo 23 wards. This chart compares therentable area and the number of buildings by building age and shows the proportion of each.
Our previous study, as of 2014, included office buildings that are less than 50 years old. In this 2016 study, weincluded office buildings that are 70 years old or less, meaning those constructed in the post-war period.

Key FindingsTokyo 23 Wards office stock totaled 11.95 million tsubo in the rentable area basis.
Small and medium buildings account for 46% while large buildings account for more than half, 54%.

Tokyo 23 Wards office stock totaled 7,803 buildings in the number of building basis.
Over 90% of the buildings are small or medium buildings.

Entire stock is 27.8 years old on average. Small and medium buildings are 28.4 years old while large
buildings are 22.0 years old. Stock is aging; small and medium buildings in particular.

Not many small and medium buildings were constructed after the economic bubble; over 80% aremore than 20 years old in both the rentable area basis and the number of building basis.

Large buildings that are more than 20 years old slightly exceed those less than 20 years old in thenumber of building basis but not much difference in the rentable area basis. This indicates that supplyof large buildings continued after the burst of the economic bubble.

Large Building: 5,000 tsubo or larger GFA / Small-Medium Building: 300-5,000 tsubo GFA / 1 tsubo = 3.3 sqm

Figure 1: Tokyo 23 Wards Office Stock Pyramid 2016 based on Rentable Area

Office Stock Pyramid 2016
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax Real
Estate Institute Corporation.
Copyright © 2016 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute

1. Small and Medium Buildings versus Large Buildings
As of the end of 2016, the total rentable area of office stock in Tokyo 23 Wards is 11.95 million tsubo. Of them
46% or 5.51 million tsubo are of the small and medium buildings with gross floor area of less than 5,000 tsubo(Figure 2). The rentable area of large buildings (gross floor area of 5,000 tsubo or larger) totaled 6.44 million
tsubo or 54% of the entire stock. The share of small and medium buildings and large buildings areapproximately the same in the rentable area basis.
Figure 2: Tokyo 23 Wards Office Stock Pyramid 2016 based on Rentable Area
Comparison of Small and Medium Buildings and Large Buildings

In the number of building basis, the entire stock in Tokyo 23 Wards totaled 7,803 buildings. Of them, 91% or
7,071 buildings are small or medium buildings whereas large buildings account for only 9% or 732 buildings(Figure 3).
Figure 3: Tokyo 23 Wards Office Stock Pyramid 2016 based on Number of Buildings
Comparison of Large Buildings and Small and Medium Buildings

Office Stock Pyramid 2016
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax RealEstate Institute Corporation.
Copyright © 2016 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute

2. Aged Buildings versus New Buildings
The average age of the entire stock is 27.8 years old. Small and medium buildings averaged 28.4 years old whilelarge buildings averaged 22.0 years old, underlining the aging of small and medium buildings in particular(Figure 4).
The small and medium buildings constructed during the economic bubble in 1987-1993 (23-29 year-oldbuildings) account for a large part of the stock, pushing the number of buildings that are more than 20 years
old to 5,927 buildings or over 80%. Since not many small and medium buildings were constructed after that,the number of buildings that are less than 20 years old remained at 1,144 buildings. Similarly in the rentablearea basis, the share of the aged office buildings (more than 20 years old) dominates the small and medium
building stock with 4.44 million tsubo; the buildings that are less than 20 years old are 1.07 million tsubo.
If we look at large buildings, the number of buildings that is more than 20 years old slightly exceeds those lessthan 20 years old, the former is 395 buildings and the latter, 337 buildings, but this is only a small difference.
Also in the rentable area basis, buildings that are more than 20 years old and those less than 20 years old areroughly the same level, the former is 3.19 million tsubo and the latter, 3.25 million tsubo, indicating that largebuildings have been constantly constructed even after the burst of the economic bubble.
Figure 4: Tokyo 23 Wards Office Stock Pyramid based on Rentable Area
Comparison of Building Age

Office Stock Pyramid 2016
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax RealEstate Institute Corporation.
Copyright © 2016 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute

Buildings constructed under the old seismic standards (35 years old or older) continue to see some level ofvolume, accounting for over 20% in both small and medium buildings (27%) and large buildings (20%) in therentable area basis (Figure 5).
Figure 5: Tokyo 23 Wards Office Stock Pyramid based on Rentable Area
Percentage of Buildings Constructed under the Old Seismic Standards

From now on, new constructions of large buildings will continue, and competitions among same-size buildings
are expected to be intense. Small and medium buildings constructed during the economic bubble will turn 30
years of age and system renewals and renovations will be necessary.

Office Stock Pyramid 2016
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax Real
Estate Institute Corporation.
Copyright © 2016 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute
Survey Overview
PeriodNovember 2015

AreaTokyo 23 Wards

SubjectBuildings

Data

Office buildings (mainly used as office) with 300 tsubo or larger gross floor area
constructed in and after 1946, including buildings to be completed in 2016.
Number of office buildings and size of rentable office area in tsubo (1 tsubo = 3.3 sqm)
Large buildings:
5,000 tsubo or larger gross floor area
Small and medium buildings:
300-5,000 tsubo gross floor area
The data was collected from publicly available sources such as news articles and office for rent information(including those in the past). The data used in this study is those with the building age. Owner-occupiedbuildings are excluded.

The data of new constructions replacing old buildings and the data of demolished buildings have beencollected and reflected in our data to the extent possible. Please, however, understand that some
information may not be included in our data.

Buildings to be completed in 2016 are based on the information available as of November 2015.

If the rentable area is publicly available, that area is applied. If not, the rentable area is estimated based on
the gross floor area with the formula developed by our joint research with the laboratory of Dr. NaokiKatoh, Professor at Graduate School of Engineering, Kyoto University.

"Buildings constructed under the old seismic standards” refer to the buildings constructed before theenforcement of the new seismic standards in 1981. In this study, buildings completed in 1981 or before aredeemed as constructed in line with the old seismic standards.

Office Stock Pyramid 2016
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax RealEstate Institute Corporation.
Copyright © 2016 Xymax Real Estate Institute Corporation. All rights reserved.

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