October 20, 2015

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Office Space per Person 2015
Space per person is the smallest ever. Rent per person is on the increase.
Xymax Real Estate Institute is studying corporate tenants in office buildings to have a better
understanding of how the office space is used.
This is the annual reporting of office space per person in a typical office building. The analysis focusedon cost is also available with the survey of the rent per person (including CAM charge) started from lastyear.
For the result of the previous survey, see "Office Space per Person 2014" released on December 1, 2014.

Key Findings● Office space per person in Tokyo 23 Wards in 2015 was 3.87 tsubo, the smallest size
since the survey began.
● This result may be largely influenced by increased workers following the job market
recovery.

● Monthly office rent per person in Tokyo 23 Wards in 2015 started to increase andmarked 65,192 yen.
(1 tsubo=approx. 3.3 sqm)

Survey Outline
Period2009 – 2015 (surveyed annually)

Respondents

Office tenants occupying the office buildings in Tokyo 23 Wards

Valid Response

Accumulated: 6,000 tenants
829 in 2009
871 in 2010
873 in 2014
637 in 2015

Calculation
MethodEstimated by dividing the tenants' office space and the monthly rent by the number ofworkers in the office. The median of each is referred to as "office space per person" and"office rent per person".

894 in 2011

909 in 2012

987 in 2013

Office space: Net rentable area specified in the contract including the desk area,
entrance (reception area), conference rooms, refresh rooms, document rooms, storage
rooms and exclusive-use corridors.
NotesRent: Rent including CAM charge
Number of office workers: Number of "users" of the office space as responded by thetenant.

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed unless prior consent from XYMAX is obtained.
Copyright © XYMAX Corporation. All rights reserved.

1Office Space per Person
The median of the office space per person as of April 2015 calculated from the net rentable area and thenumber of office workers of tenants was 3.87 tsubo, which means that the space per person of half of thetenants was smaller than 3.87 tsubo and that of the remaining tenants was larger than 3.87 tsubo.
Figure 1 shows the office space per person by year. After having remained around 3.9 tsubo to 4.0 tsubo
in 2009-2014, the office space per person in Tokyo 23 Wards decreased to below 3.9 tsubo for the firsttime, to 3.87 tsubo in 2015, the smallest size since the survey began.
Figure 1: Office Space per Person 2009-2015 (Tokyo 23 Wards)

Behind the shrinking office space per person is probably the increase in workforce as the job market
improved. The ministry surveys show steady improvements of the job market. The unemployment rate,
for the first time in 18 years, decreased to 3.3% in April this year, and the jobs-to-applicants ratio marked
1.17 for the first time in 23 years, according to the surveys by the Ministry of Internal Affairs andCommunications and the Ministry of Health, Labour and Welfare*.
* Labour Force Survey by Ministry of Internal Affairs and Communications Statistics Bureau
http://www.stat.go.jp/english/data/roudou/index.htm
Labour Statistics by Ministry of Health, Labour and Welfare
http://www.mhlw.go.jp/english/database/db-l/index.html

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed unless prior consent from XYMAX is obtained.
Copyright © XYMAX Corporation. All rights reserved.

2Figure 2 is a year-on-year comparison of some surveyed corporate tenants with data of two consecutiveyears. The distribution of the ratio of increase or decrease is shown. The number of tenants that added
workers was greater (45%), than the number of tenants that reduced workers (34%). Thus, thetenant-by-tenant analysis also indicates that the increase in workforce is the factor of the shrinking officespace per person.

Figure 2: Distribution of Year-on-Year Growth of Tenant's Office Workers 2014-2015

Office Rent per Person
The median of the office rent per person as of April 2015 calculated by dividing the gross monthly rent by
the number of office workers was 65,192 yen per month, which means that the monthly office rent of halfof the tenants was less than 65,192 yen and that of the remaining tenants was more than 65,192 yen(see Figure 3). The rent per person increased for the first time since the survey began.
As shown, the office space per person is decreasing while the rent per person is increasing. This
indicates that the rent increased faster than the workforce, not only for new tenants but also for existing
tenants who renewed lease contracts and agreed rent increase, reflecting the recovery of the officespace market.

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed unless prior consent from XYMAX is obtained.
Copyright © XYMAX Corporation. All rights reserved.

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Figure 3: Office Rent per Person 2009-2015 (Tokyo 23 Wards)

Commentary
The job market improved and many companies are hiring more workers now. If tenants want to keep
their office space per person, they need to expand the office space. However, increasing rent is a criticalissue for tenants. To accommodate increased workers in the same size of space, some companies
converted the meeting room into an office space, while other companies implemented a hot-desking
office to achieve effective use of desks.
The recent rapid progress in the information and communications technology (ICT) enabled workplaceinnovation. Companies are introducing mobile working or having a satellite office. There is a possibility
that these working style changes can achieve downsizing of office space per person and reduction ofrent per person.
The office environment is on track for transformation responding to all kinds of challenges such asincreasing productivity, diversifying workforce, reducing costs and more. Xymax Real Estate institute will,through these surveys, continue to study the actual conditions of use of office space and provide
referential information.

The original research report in Japanese and translated reports in Chinese and Korean are also available online.
Japanesehttps://www.xymax.co.jp/

Chinesehttps://www.xymax.co.jp/cn/index.html

Koreanhttps://www.xymax.co.jp/ko/index.html

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed unless prior consent from XYMAX is obtained.
Copyright © XYMAX Corporation. All rights reserved.

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