Survey of Large-Scale Office Building Supply
in Tokyo’s 23 Wards 2022

July 5, 2022

Mori Trust Co., Ltd., (Head Office: Minato-ku, Tokyo) has surveyed supply trends for large-scale office buildings with total officespace of 10,000 square meters or more in Tokyo’s 23 wards since 1986 and for mid-size office buildings with total office spaceof 5,000 square meters to less than 10,000 square meters since 2013, based on various published materials, field surveys, andinterviews. The results of the most recent survey are presented below. In calculating total office floor area, where the survey
deals with multipurpose buildings—buildings that also contain retail space, residential space, or hotels—the calculation includes
only the floor area set aside solely for office use.
[Survey Date: December 2021]

The supply for five years after 2022 is 30% lower than the historical average
Following on 2021, 2022, 2024, and 2026 are also at record lows
Main Results of This Survey
1. Supply of large-scale office buildings

The amount of new space introduced in large-scale office buildings in 2021 stayed low with 610,000m²,
the lowest supply of the past 20 years. While the supply in 2022, 2024, and 2026 will be limited, supply
in 2023 and 2025 will exceed the average supply of 1,150,000m² in the past 20 years, resulting in avolatile supply environment.

2. Supply trends by area

During the period from 2022 to 2023, the supply in Tokyo’s three central wards will remain over 70%. In
the next five years, the supply share of Chiyoda Ward will decrease, and the share of Chuo Ward andMinato Ward will increase. In particular, Minato Ward will account for 50% of the total, and supply will
increase mainly in Minato Ward. Otemachi, Marunouchi, and Yurakucho, which had an outstanding
supply volume in the past five years, will fall out of the top 10 districts in the next five years. On theother hand, the development will proceed in Minato Ward, such as Toranomon and Shimbashi,
Shirokane and Takanawa, Shiba and Mita, Akasaka and Roppongi, and Shibaura and Kaigan.

3. Supply trends by type of development site

Looking into the share of new office space by type of development site from 2012, it can be seen thatthe development of “Undeveloped/underdeveloped land: Redevelopment, etc.” in the three central
wards has been expanding. Land for the development of large-scale office buildings, for which“Rebuilding” was the main source of supply, is shifting to “Undeveloped/underdeveloped land:
Redevelopment, etc.”

4. Supply of mid-size office buildings

The amount of new office space introduced in mid-size office buildings in 2021 was 74,000m². The
amount was lower than that of the previous year for three consecutive years; however, in 2022, theamount increases to 121,000m² in reversal.
The average supply for the next two years is expected to be 102,000m², the same level as theaverage supply for the past ten years of 106,000m².

Conclusion
Regarding new large-scale office buildings constructed in 2021, and tenants were informally decided on for
approximately 90% of the supplied floor space. About 50% of 2022 and about 30% of 2023 have been informallydecided, and demand for new buildings is firm. Looking at existing buildings, the rising trend of vacancy rates in
the five central wards settled in the second half of 2021. The total area contracted, which fell in 2020, is
expected to reverse in 2021 and rise to a certain level in 2022. Rents have also risen to the same level as in2019 in some areas, showing steady growth. This trend in the rental office market indicates that companies have
moved away from the “wait-and-see” attitude of holding back on restructuring their workplace strategies. The
spread of telework provides an opportunity to recognize the importance of face-to-face communication, and thetendency to return to offices is increasing. Companies concerned about the decline in worker engagement andthe dilution of their corporate culture have begun to improve the quality of face-to-face communication. To thisend, companies redefine the role of the center office from broad perspectives, such as self-branding, thepropagation of their own culture, improvement in worker wellbeing, and incorporate these into the space as amessage. In addition to this solid demand, the average supply of large-scale office buildings over the next five
years will be about 30% lower than in the past 20 years, and the supply-demand balance is expected to tighten.
In this age of rapid changes in society, lifestyles, and ways of working, developers are expected to contribute to
the sustainable growth of the Japanese economy by providing space services that capture the current trends
toward companies’ unchanging demands, such as growth and innovation.

For further information, contact:
Keiji Kurokawa, Michihiro Yonehara, Masayuki Mitsui
Strategic Business Planning Group, Office of the President
Mori Trust Co., Ltd. http://www.mori-trust.co.jp
Toranomon 2-chome Tower, 3-17 Toranomon 2-Chome, Minato-ku, Tokyo 105-0001 JAPAN1. Supply of large-scale office buildings
The amount of new space introduced in large-scale office buildings in Tokyo’s 23 wards in 2021 stayed low with
610,000m², the lowest supply of the past 20 years. Looking at the next five years, it is expected that while the supply in
2022, 2024, and 2026 is limited, the supply in 2023 and 2025 exceeds the average supply of 1,150,000m² in the past 20
years, resulting in a volatile supply environment. In addition, the average supply for the next five years will be limited to840,000m², so the supply for the next five years will tend to be lower than the average supply for the past 20 years forfive consecutive years. The supply of large-scale office buildings will remain at a low level for a while. (Chart 1-1)
As a result of calculating supply shares of new office space after tallying the supply by ward and dividing them into thethree central wards and other wards in order to investigate the supply trends, we have found that the sharecorresponding to the three central wards exceeds 60% from 2022. Tokyo’s three wards will remain the pillar of the
supply of large-scale office buildings. (Chart 1-2)
By tallying the new office space of large-scale buildings by building scale in 5-year units and investigating the trends, wehave found that the share of large-scale buildings with total office floor space of 100,000m² or more, which was 30%
during the period from 2002 to 2006, will double to 60% during the period from 2022 to 2026. The trend of large-scale
office buildings remains unchanged toward ultra-large-scale buildings. (Chart 1-3)

【Chart 1-1】Supply trends for large-scale office buildings in Tokyo’s 23 wards

Number of
supply50

Office supply in completed buildings

43

Office supply in buildings under construction

36

27

29

29

29

26

Number of supply

21

20

250

22

22

27

(10,000m²)

40

Office supply in buildings to be constructed

32

19

21

18

23

30

22

19

21

20
17

14

16

10

10

221

5

2002-2021 average supply:
1,150,000m²/year

200

185

181

0

2022-2026 average supply:
840,000m²/year

Supply volume

162
147

150
118

118

100

90

82

118
92

82

99

87
76

66

64

61

'02 '03'04 '05 '06 '07 '08 '09 '10 '11'12 '13 '14 '15 '16 '17 '18【Chart 1-2】 Tokyo’s three central wards
and other wards
76%(370,000m2)

'22

74%
(980,000m2)

'23

70%
(430,000m2)

'24

0%

25%

'02−'0631%(430,000m2/year)

26%(340,000m2)'07−'1133%
21%(320,000m2/year) (200,000m2/year)

17%(230,000m2)

Tokyo’s three central wards

75%
Other wards'23 '24 '25

'26

55%
(610,000m2/year)'17−'21

100%

0%

25%

46%
(440,000m2/year)31%(350,000m2/year)25%(280,000m2/year)21%24%(240,000m2/year) (260,000m2/year)

61%(510,000m2/year)'22−'2641%(570,000m2/year)

28%(400,000m2/year)

44%(480,000m2/year)'12−'1636%(140,000m2)

50%'20 '21 '22

40【Chart 1-3】 Supply and ratio bybuilding scale30%(180,000m2)

64%(260,000m2)

'19

24%
(120,000m2)

83%(1,140,000m2)

'25
'26

61
49

50

0

137

132

126

119

14%
25%
(110,000m2/year) (210,000m2/year)

50%

75%

100%

Buildings of 100,000m² or larger
Buildings of 50,000 - 99,999m²
Buildings of less than 50,000㎡

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2022

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2. Supply trends by area
Supply trends of large-scale office buildings are investigated by area.
When the supply share by ward for the past five years and the future five years was calculated, the share of the three
central wards exceeds 70% for both the past five years and the future five years. A comparison of the three central
wards during the two periods shows that Chiyoda Ward’s supply share is expected to decrease, while Chuo Ward’s andMinato Ward’s supply share are expected to increase. In particular, Minato Ward will account for 50% of the total, andsupply will increase mainly in Minato Ward. (Chart2-1)
Next, we calculated the changes in supply of new office space by district and compared the top 10 districts. We havefound that the supply in Otemachi, Marunouchi, and Yurakucho, which was outstanding for the past five years, will fallout of the top 10 districts in the next five years. In the next five years, developments in Minato Ward, such as
Toranomon and Shimbashi, Shirokane and Takanawa, Shiba and Mita, Akasaka and Roppongi, and Shibaura andKaigan, will advance, according to the trend tabulation by district. (Chart2-2)【Chart 2-1】Supply of large-scale office space by ward
［2022−2026］［2017−2021］

Tokyo’s three central wards：
3,990,000m²（72%）
Other wards：1,570,000m²（28%）

Supply (10,000m²)
Chiyoda

183

Chuo

60

Minato156

Shinjuku

21

Shibuya45

Shinagawa

29

Koto

33

Others29

Other wards
5%
Koto
6%
Shinagawa5%

Shinjuku
4%

Chiyoda33%

Shibuya8%

Minato
28%

Chuo
11%

Tokyo’s three central wards：
3,180,000m²（76%）
Other wards： 1,010,000m²（24%）

Supply (10,000m²)

Other wards
3%
Koto
3%
ChiyodaShinagawa
7%
8%

Shibuya6%

Chiyoda81

Minato210

Shinjuku

14

Shibuya26

Shinagawa

33

Koto

14

Others

14

Chuo
19%

Shinjuku
3%

Minato
50%

27

Chuo

【Chart 2-2】Top ten districts［2017−2021］（10,000m²） 144
（26％）
70

2017
2018
2019
2020
2021

Supply volume

60

59
（11％）

50
40

46
（8％）

37
（7％）

30
（5％）

27
（5％）

ToyosuOsaki
Gotanda

30

25
（4％）

22
（4％）

19
（3％）

17
（3％）

20
10
0

Otemachi Tranomon
Marunouchi Shimbashi
Yurakucho（10,000m²） 81
70
（19％）

Supply volume

60

Shibaura
KaiganShibuya

Yaesu
Muromachi Shibakoen Akasaka
Nihombashi Hommachi Hamamatsucho Roppongi
Kyobashi［2022−2026］
75
（18％）

50

2022
2023
2024
2025
2026
2022

47
（11％）
35
（8％）

40

27
（7％）

24
（6％）

16
（4％）

Akasaka
Roppongi

Shibuya

Osaki
Gotanda

5（5）

6（7）

30

14
（3％）

13
（3％）

20

17
（4％）

10
0

(

Yaesu
TranomonShirokane
Shimbashi Nihombashi Takanawa
KyobashiRank) for previous
1（1）timeframe

2（2）

3（3）

Shiba
Mita
4（4）

7（10）

Shibaura Nishishinjuku
Kaigan8（9）9（-）

Toyosu10（-）

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2022

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【Chart 2-3】Supply volume in the key business districts［2017−2021］

Iwamotocho
Higashikanda
Sotokanda

Chiyoda Ward
Yotsuya
Shinanomachi

OtemachiMarunouchi
Yurakucho

Kojimachi
Hirakawacho
KioichoAkasaka
Roppongi
ShibuyaMuromachi
HommachiYaesu
Nihombashi
Kyobashi

Chuo WardToyosuToranomon
Shimbashi

Shibakoen
Hamamatsucho

Minato Ward
Shibaura
KaiganApprox. supply volume：500,000㎡〜：300,000〜500,000㎡

Osaki
Gotanda：200,000〜300,000㎡：100,000〜200,000㎡［2022−2026］

Iidabashi
Kudan
Fujimi

Chiyoda Ward
Nishishinjuku

Yaesu
Nihombashi
Kyobashi

Akasaka
Roppongi
Shibuya

Chuo WardToyosuToranomon
Shimbashi

Minato Ward

Approx. supply volume

Shiba
Mita
Shibaura
KaiganShirokane
Takanawa：500,000㎡〜：300,000〜500,000㎡：200,000〜300,000㎡

Osaki
Gotanda：100,000〜200,000㎡

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2022

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3. Supply trends by type of development site
Looking into the share of new office space by type of development site from 2012, it can be seen that the developmentof “Undeveloped/underdeveloped land: Redevelopment, etc.” in the three central wards has been expanding. Land forthe development of large-scale office buildings, for which “Rebuilding” was the main source of supply, is shifting to“Undeveloped/underdeveloped land: Redevelopment, etc.”
Except the three central wards, buildings on “Undeveloped/underdeveloped land: Redevelopment, etc.” has continued
to be the major source for new office space. In the 23 wards of Tokyo overall, “Undeveloped/underdeveloped land:
Redevelopment, etc.” will be the pillar of supply of lands for development for new office space from 2022 to 2026.
(Chart3-1)【Chart3-1】Supply volume and ratio by land for development［Othter wards］[Tokyo’s three central wards]

100%

100%
17％
（650,000m²）
40％（1,610,000m²）

80%

80%
63％
（1,990,000m²）

60%

60%

40%

68％
（1,110,000m²）

83％（2,900,000m²）

76％（1,200,000m²）

71％（710,000m²）

40%
60％（2,370,000m²）
37％（1,190,000m²）

20%

20%

32％
（530,000m²）

24％（370,000m²）

29％（300,000m²）0%0%
2012ー20162017ー2021

2022ー2026

2012ー20162017ー2021

2022ー2026

Undeveloped/underdeveloped land :Redevelopment, etc.
Rebuilding[Definitions]Rebuilding:Land (or the development of such land) previously used as one site, occupied by a building for office, hotel, or
residence which has been demolished.

Undeveloped/underdeveloped land:

Land for highly effective use (or development of such land), including development of clusters of small buildings;
land (or the development of such land) not used effectively; for instance, mixed zones of parking lots and older
buildings, densely populated residential areas, former plant sites, railway sites, or idle land.

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2022

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4. Supply trends for mid-size office buildings in Tokyo’s 23 wards
This section discusses supply trends in mid-size office buildings containing from 5,000m² to less than 10,000m².
The amount of new office space introduced in mid-size office buildings in 2021 was 74,000m². The amount was lower
than that of the previous year for three consecutive years; however, in 2022, the amount will increase to 121,000m² inreversal. The average supply for the next two years is expected to be 102,000m², the same level as the average supply
for the past ten years of 106,000m². Attention is drawn to whether the supply of mid-size office buildings, which has
been on a declining trend in recent years, will improve in the future.(Chart4-1)
Looking at the supply share by ward during the period from 2022 to 2023, the supply share in areas other than the three
central wards will approach 50%. (Chart4-2)
The supply share in areas other than the three central wards was only about 30% during the period from 2018 to 2019
and about 20% during the period from 2020 to 2021, indicating a change in the supply of land for mid-size officebuildings. (Chart4-3 on following page)
Looking at the supply trends for mid-size office buildings by type of development site, office space in rebuilt buildings (“Rebuilding”) is the main source of new space in mid-size office buildings in the 23 wards overall, which shows a trend
distinct from the trend for large-scale office buildings, for which construction on “Undeveloped/underdeveloped land” isthe main category. (Chart4-4 on following page)
As for mid-size office building projects, the share of major developers, which has been on an increasing trend in recent
years, will turn to decline during the period from 2022 to 2023. (Chart4-5 on following page)【Chart4-1】 Supply trends for mid-size officebuildings in Tokyo’s 23 wards【Chart4-2】 Supply of mid-size buildings:
Ratio by ward and top three districts

Office supply in completed buildings
Office supply in buildings under construction
Office supply in buildings to be constructed［2022−2023］

30
22

17

16

19

16

13

12

16
12 12

20
10

12

9

0

Number of supply

Number of supply

20.0

Supply volume

2012-2021 average supply:
106,000m²/year

13.1

10.0

9.1

8.4

Tokyo’s three central wards:
108,000m²（53%）

12.1
8.8 8.0

Other wards:
96,000m²（47%）
8.3

7.4

Top three districts

5.0'12 '13

'14

'15

'16

'17

'18

'19

Minato22%2022-2023 average supply:
102,000m²/year

12.9

11.3

11.2

.0

Chuo
22%

Shinjuku
9%

15.5

Chiyoda9%

Shinagawa3%
Shibuya11%(10,000m2)

15.0

Koto
6%

Other wards
18%

'20

'21

'22

'23

SupplyShiba・Mita

19,000m²

Kayabacho・
Hatchobori・Shinkawa

19,000m²

Sendagaya・Jingumae

16,000m²

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2022

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【Chart4-3】 Supply of mid-size buildings: Ratio by ward and top three districts［2018−2019］

Shinjuku
13%［2022−2023］［2020−2021］

Other wards
8%
Koto
4%
ChiyodaShibuya3%
6%

Other wards
18%
Shibuya4%

Chiyoda
27%

Chuo
44%

Minato
22%

Koto
6%

Minato44%

Other wards
18%

Chiyoda
9%
Chuo
22%

Chuo
7%

Shinagawa3%

Shibuya
11%
Shinjuku
9%Minato22%

Tokyo’s three central wards:
155,000m²（71%）

Tokyo’s three central wards:
121,000m²（78%）

Tokyo’s three central wards:
108,000m²（53%）

Other wards:
63,000m²（29%）

Other wards:
33,000m²（22%）

Other wards:
96,000m²（47%）

Top three districts

SupplyTop three districts

Top three districts

SupplySupplyYaesu・Nihombashi・Kyobashi 32,000m²

Toranomon・Shimbashi 40,000m²

Shiba・Mita

Kayabacho・Hatchobori・Shinkawa 29,000m²

Horidomecho・Higashinihombashi 11,000m²

Kayabacho・Hatchobori・Shinkawa 19,000m²

Muromachi・Honcho

Kojimachi・Hirakawacho・Kioicho 11,000m²

Sendagaya・Jingumae

28,000m²

19,000m²

16,000m²【Chart4-4】 Supply of mid-size buildings: Ratio by type of development site (2022-23)［Three central wards］［Other wards］

Undevelopedor
Underdeveloped
land
29%

Undevelopedor
Underdeveloped
land
48%
Rebuilding
71%

Rebuilding
52%【Chart4-5】 Supply of mid-size buildings: Ratio developed by major developers*［2012−2016］

Major
developers
27%・32,000m²/year

Others73%・87,000m²/year［2017−2021］

Major
developers
38%・35,000m²/year
Others62%・58,000m²/year［2022−2023］

Major
developers
32%・32,000m²/year

Others
68%・70,000m²/year* Major developers: General developers with paid-in capital of 10.0 billion yen or more

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5. Conclusion
Regarding new large-scale office buildings constructed in 2021, tenants were informally decided on approximately 90%of the supplied floor space, according to our survey. About 50% of 2022 and about 30% of 2023 have been informallydecided, and demand for new buildings is firm.
Looking at the demand for existing buildings, the rising trend of vacancy rates in the five central wards settled in thesecond half of 2021. The total area contracted, which fell in 2020, is expected to reverse in 2021 and rise to a certain
level in 2022. Rents have also risen to the same level as in 2019 in some areas, showing steady growth.
This trend in the rental office market indicates that companies have moved away from the “wait-and-see” attitude ofholding back on restructuring their workplace strategies. The spread of telework resultantly provides an opportunity torecognize the importance of face-to-face communication, and the tendency to return to offices is increasing. Companies
concerned about the decline in worker engagement and the dilution of their corporate culture have begun to improve thequality of face-to-face communication. To this end, companies redefine the role of the center office from broad
perspectives, such as self-branding, the propagation of their own culture, improvement in worker wellbeing, andincorporate these into the space as a message. In addition to this solid demand from the above background, etc., theaverage supply of large-scale office buildings over the next five years will be about 30% lower than in the past 20 years,
and the supply-demand balance is expected to tighten steadily.
In this age of rapid changes in society, lifestyles, and ways of working, developers are expected to contribute to thesustainable growth of the Japanese economy by providing space services that capture the current trends toward
companies’ unchanging demands, such as growth and innovation.

【Chart 5-1】 Office stock in Tokyo’s three central wards
Minato ward
Chuo ward
Chiyoda ward

（10,000㎡）
5,000

Office space

4,000

3,710

4,384

3,912

4,889

4,663

4,588

3,000
2,000
1,000
0

'96

'97 '98 '99 '00 '01'02 '03'04 '05 '06'07 '08 '09 '10

'11

'12

'13 '14 '15 '16 '17 '18 '19'20

Source: Compiled by Mori Trust based on “An Overview of Tokyo’s Land” (Tokyo Metropolitan Government)【Chart 5-2】 Growth of office stockThree central wards
Chiyoda ward（％）

Chuo ward
Minato ward

12%

Growth rate

10%
8%
6%
4%
2%
0%
-2%

'96

'97 '98 '99 '00 '01'02 '03'04 '05 '06'07 '08 '09 '10

'11

'12

'13 '14 '15 '16 '17 '18 '19'20

Source: Compiled by Mori Trust based on “An Overview of Tokyo’s Land” (Tokyo Metropolitan Government)

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2022

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