Survey of Large Office Building Supply
in the 23 wards of Tokyo '05-As of : December, 2004-䇭䇭Since 1986, Mori Trust Co., Ltd. (head office: Minato-ku, Tokyo) has conducted a series of field surveys and questionnaires in the23 wards of Tokyo on large office buildings with a total floor area of 10,000ট or more, covering topics such as the progress ofbuilding project plans. The following are the findings of the latest survey.
Note: In this survey, the supply of office buildings is measured in terms of the total floor area used exclusively for offices.
As such, the floor areas used for retail stores, residences, hotels and other non-office purposes are excluded.

Rebuilding of the city center as a business hub takes off in earnest䌾Future office building supply will be concentrated in the area around Tokyo Station,
while companies will also start returning to the heart of the city in large numbers.䌾㪧㫆㫀㫅㫋㫊㩷㫆㪽㩷㫋㪿㪼㩷㫊㫌㫉㫍㪼㫐㩷㫉㪼㫊㫌㫃㫋㫊㪈㪅㩷㪛㪼㫍㪼㫃㫆㫇㫄㪼㫅㫋㫊㩷㫀㫅㩷㫊㫌㫇㫇㫃㫐
Annual supply from 2004-2008 will average just over a million square meters, with no signs of a curbon supply following the huge volume of office space that came onto the market in 2003.
Supply in 2005 will be limited to 820,000ট; however, in 2006 this will approximately double, to 15,300,000
ট, with average annual supply over the five years following the major boost in supply in 2003 (i.e.
2004-2008) projected to reach 1,020,000ট. This is approximately 200,000䋛 more on average annually thanin the five years of constraint witnessed following the major boost to supply in 1994.
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㪉㪅㩷㪫㫉㪼㫅㪻㫊㩷㫀㫅㩷㫊㫌㫇㫇㫃㫐㩷㪸㫉㪼㪸㫊
From 2005 onward the main area of supply will be the district around Tokyo Station, as the rebuildingof this area as a business hub takes off in earnest.
From 2005-2008, while Chiyoda and Minato Wards will account for nearly the same share of new building
supply by ward at 30% each, in terms of more specific business districts, Otemachi, Marunouchi, andYurakucho will be the neighborhoods to watch. The supply of office space in these districts is expected toreach approximately 760,000ট over four years, in fact over 2.5 times the supply seen in the second and lower
ranked districts such as Roppongi, Akasaka, and Osaki-Gotanda.

㪊㪅㩷㪫㫉㪼㫅㪻㫊㩷㫀㫅㩷㪺㫆㫄㫇㪸㫅㫀㪼㫊㩷㫄㫆㫍㫀㫅㪾㩷㫇㫉㪼㫄㫀㫊㪼㫊Trends in the number of companies moving to new buildings highlight a full-scale return to thecentral city.
Most new office buildings completed since 2004 with 10,000 tsubo or more of floor space are situated indistricts conveniently located for JR rail terminals, such as Marunouchi, Shiodome, and Shinagawa. A look at
trends in companies moving premises reveals an obvious desire among businesses to move to better locations(to gain better access to transport infrastructure, for example), highlighting what is becoming a full-scale
return to the central city.

㪦㫌㫋㫃㫆㫆㫂㩷㪽㫆㫉㩷㫋㪿㪼㩷㫄㪸㫉㫂㪼㫋Current trends in the Tokyo office market point to a concentration of supply in favorable locations in the central
city with convenient access to public transport, and the accompanying return to center of the city by the businesssector. This can only be attributed to the fact that knowledge-intensive enterprises setting up business inTokyo have begun making careful choices about office buildings as a vital management resource in terms ofattracting top staff and improving intellectual productivity in reaction to the growing fluidity of humanresources with the demise of aspects of the Japanese labor market such as lifetime employment andpromotion by age. The heart of the city looks set to become even more of a center for business in future, as
the optimal office location catering to corporate demands for the next generation.
The first five years of the initial decade after 2000 saw the creation of new business hubs in districts such as
Shiodome and Shinagawa, due to the large-scale development of former Japanese National Railways’ properties.
However, development of these properties has largely been concluded; as a result the rebuilding of businesshubs (with an emphasis on replacing existing buildings) is expected to begin in earnest. It is not difficult toimagine the nucleus of such development in the districts around Tokyo Station (Otemachi, Marunochi,Yurakucho, Yaesu, Kyobashi, and Nihonbashi) due to the fact that despite the primacy of these Tokyo
locations in terms of transport, around half of their buildings are over 30 years old.
This year's survey suggests a genuine start to the rebuilding of central Tokyo as a business hub, and in thedistricts around Tokyo Station, which boast excellent development potential for both supply and demand, it isexpected that rebuilding will continue into the medium/long- term, via the replacement of existing buildings.
For further information, please contact:
Research & Planning Section‫ޓޓޓޓ‬Miyuki Ban‫ޓޓޓޓޓޓޓޓ‬Sales Department
Mori Trust Co., Ltd.‫ޓ‬http://www.mori-trust.co.jp
Toranomon 2-chome Tower, 3-17 Toranomon 2-Chome, Minato-ku, Tokyo 105-0001 JAPAN
Tel: +81-3-5511-2357 / Fax: +81-3-5511-2409
E-Mail: ban-m@mori-trust.co.jp