Survey of Large-Scale Office Building Supply
in Tokyo’s 23 Wards 2018
April 25, 2018
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 space of
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 thefloor area set aside solely for office use.
[Survey Date: December 2017]

Supply to increase in 2018–2020 and decline subsequently—Supply in 2021–2022 to be half the past average or lower—
Main Results of This Survey

1. Supply of large-scale office buildings
Supply of large-scale office space in 2017 in Tokyo’s 23 wards was 0.76 million
square meters, falling short of the past 20-year average of 1.05 million square meters.
Supply is projected to be 1.47 million square meters in 2018, 1 million square meters in
2019, and 1.73 million square meters in 2020. The last would mark the third-highest
level in the past 20 years. A subsequent downturn is anticipated for the two years from2021, as supply dips significantly below the past average.

2. Supply trends by area
Supply trends in central Tokyo are expected to remain on the same trajectory during
the 2018–2022 timeframe. Supply in Tokyo’s three central wards will remain at 70% of
total supply. By district, Otemachi/Marunouchi/Yurakucho will continue to account forthe majority of this supply. In Minato Ward, supply is expected to expand in the three
districts of Toranomon/Shinbashi, Shibaura/Kaigan, and Shibakoen/Hamamatsucho. In
Tokyo’s other wards, supply is projected to expand in Shibuya, Osaki/Gotanda, Toyosu,
and Ikebukuro.

3. Supply trends by type of development site
In Tokyo’s three central wards in 2018–2022, majority of supply will come fromrebuilding. However, supply on undeveloped/underdeveloped land (including
redevelopment, etc.) is growing and is expected to reach a pace roughly triple that ofthe past five years. Outside Tokyo’s three central wards, supply on
undeveloped/underdeveloped land (including redevelopment, etc.) will account for
approximately 80% of total supply.

4. Supply of mid-size office buildings
Supply in 2017 was 91,000 square meters, the fourth consecutive year below the
10-year average of 133,000 square meters. In 2018, supply will be 138,000 square
meters, above the average, but it will fall again in 2019. In terms of supply share byward in 2018–2019, Chuo Ward will have the highest share. In Minato Ward, supply willcontinue to grow at a steady rate as it has the past four years.

For further information, contact:
Keiji Kurokawa, Michihiro Yonehara
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
In 2017, the supply of large-scale office space in Tokyo’s 23 wards was 0.76 million square meters, below the past
20-year average of 1.05 million square meters.
Supply in 2018, however, is expected to be 1.47 million square meters, above the past average. Projections see amodest decline in 2019 to 1 million square meters but an increase in 2020 to 1.73 million square meters, the third-highest
level seen over the past 20 years.
For the three years from 2018, average annual supply is projected to be 1.4 million square meters, second only to the
2002–2004 timeframe, when supply averaged 1.53 million square meters.
A major downturn is expected thereafter. In 2021–2022, and in 2022 in particular, supply will be just 0.29 million square
meters, the lowest figure in 20 years, in part in reaction to the glut of office space introduced to market through 2020.
(Chart 1-1) The average supply of office space for each of the five years from 2018 is projected to settle to 1 million
square meters, below the past 20-year average of 1.05 million square meters.
From 2018, for Tokyo’s wards, the majority of supply will be located in the three central wards. But even in the otherwards, from 2018–2020, supply is expected to increase. In 2020, supply is projected to be high and cover a broad area.
(Chart 1-2)
With respect to supply trends by building size, supply of buildings over 50,000 square meters will account for the vast
majority of supply, approximately 80% of the total, and supply of buildings over 100,000 square meters will account foraround 60% of the total, indicating the trend toward the development of ever-larger office properties. (Chart 1-3)

【Chart 1-1】Supply trends for large-scale office buildings in Tokyo’s 23 wards
Office supply in buildings under construction
Office supply in buildings to be constructed

43

Number of supply

36
29(10,000㎡)

22

17

250

26

29

32
22

21

20

16

14

27

27

29

19

22

21 19

22

22

18

9

221
1998-2017 average supply:
1,050,000㎡/year181

Supply volume

30
20
10
0

147
118

99
100

126

119

118

89

50

118
99

90

82

100

92

82

76

66

64

53

36

29

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11【Chart 1-2】 Tokyo’s three central wards andother wards
Tokyo’s
three central wards
1998-2017 average supply:
710,000㎡/year'12 '13 '14 '15 '16 '17 '18

'19

100

Other wards(10,000㎡)
150

100

1998-2017 average supply:
340,000㎡/year'98–'0236%(300,000㎡/year)

21%(170,000㎡/year)43%(360,000㎡/year)'03–'0734%(480,000㎡/year)27%(380,000㎡/year)39%
550,000㎡/year)'08–'1233%(360,000㎡/year)27%(290,000㎡/year)40%(430,000㎡/year)41%(370,000㎡/year)'13–'17
57
45

50
27

43

'20 '21 '22【Chart 1-3】Supply and ratio by building scale

121

116

50

40

173

150

72

(10,000㎡)
150

50

2018-2022 average supply:
1,000,000㎡/year

162

0

4

2018-2020 average supply:
1,400,000㎡/year

200

Number of supply

Office supply in completed buildings

52

0%

25%

28%
(26㎡/year)19%
23%(190,000㎡/year) (230,000㎡/year)58%(580,000㎡/year)'18–'2231

31%(280,000㎡/year)

50%

75%

100%

9

0

'18 '19 '20 '21 '22

0

2'18 '19 '20 '21 '22

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

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2018

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2. Supply trends by area
Supply is expected to remain concentrated in central Tokyo for the 2018–2022 timeframe. The supply in Tokyo’s three
central wards will continue to account for 70% of total supply. Of the three wards, Chiyoda Ward is projected to stay ataround 30% of total supply, retaining the top share, but Minato Ward’s share is projected to grow. In Tokyo’s other wards,
Shibuya Ward has accounted for a growing presence. (Chart 2-1)
By district, supply in the Otemachi/Marunouchi/Yurakucho district continues to be highest; this trend remained
unchanged. However, in Minato Ward, whose districts account for a growing proportion of new office space in the Tokyo
area, three districts—Toranomon/Shinbashi, Shibaura/Kaigan, and Shibakoen/Hamamatsucho—entered the top 10.
Shibuya, Osaki/Gotanda, Toyosu, and Ikebukuro, districts outside the central three wards, also ranked in the top 10,
indicating that new office space is now being built across a wider range of neighborhoods.

【Chart 2-1】Supply of large-scale office space by ward
[2013–2017][2018–2022]

Tokyo’s three central wards :3,420,000㎡ (76%)
Other wards : 1,080,000㎡ (24%)

Tokyo’s three central wards :3,650,000㎡ (72%)
Other wards : 1,390,000㎡ (28%)

Other wards
6%
Koto
2%
Shinagawa6%
Shibuya
6%
Shinjuku
4%
Minato24%

Supply (10,000㎡)
Chiyoda
Chuo

78
108

Shinjuku

19

Shibuya8%

Shibuya26

Shinagawa27

Shinjuku
4%

Koto

11

Others25

Chiyoda32%

Minato26%

Supply (10,000㎡)
ChiyodaOther wards
Koto
5%
6%
Shinagawa
5%

MinatoChiyoda
35%

Chuo
17%

157

Chuo
14%

164

Chuo

72

Minato130

Shinjuku

22

Shibuya

39

Shinagawa

26

Koto

28

Others23【Chart 2-2】Top ten districts(10,000㎡)
70

88
(20%)

[2013–2017]

2013
2014
2015
2016
2017

Supply volume

60
50

53
(12%)

40

45
(10%)

30

26
(6%)

26
(6%)

25
(5%)

19
(4%)

18
(4%)

20

15
(3%)

14
(3%)

Ginza

Sendagaya
Jingumae

100(10,000㎡)
70

Yaesu
OtemachiMarunouchi Nihonbashi
Yurakucho Kyobashi

Akasaka
Roppongi

Konan
Toranomon Jinbocho
Shinbashi Ogawamachi

Osaki
Gotanda131(26%)

Kojimachi
Hirakawacho
Kioicho[2018–2022]

2018
2019
2020
2021
2022

60

Supply volume

50

59
(12%)

40

42
(8%)

42
(8%)

35
(7%)

30

28
(6%)

25
(5%)

22
(4%)

19
(4%)

12
(2%)

20
10
0

Rank

( ) for previous
timeframe

Otemachi Toranomon
Marunouchi Shinbashi
Yurakucho
1(1)

2(5)

Shibaura
KaiganYaesu
Nihonbashi
Kyobashi

ShibuyaToyosuOsaki
Gotanda

3(–)

4(2)

5(–)

6(–)

7(4)

Muromachi Shibakoen Ikebukuro
Honcho Hamamatsucho
8(–)

9(–)

10(–)

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2018

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【Chart 2-3】Supply volume in the key business districts[2013–2017]

Ichigaya

Iidabashi
Kudan
JinbochoKojimachi Fujimi
Ogawamachi
Hirakawacho
Otemachi
KioichoMarunouchi
Yurakucho

Chiyoda Ward

Sendagaya
Jingumae

Yaesu
Nihonbashi
Kyobashi

Ginza
Akasaka
Roppongi

Toranomon
Shinbashi

Chuo WardToyosuShibuyaMinato Ward

Approx.supply volume
Konan：500,000㎡～：300,000㎡～500,000㎡

Osaki
Gotanda：200,000㎡～300,000㎡：100,000㎡～200,000㎡[2018–2022]
Ikebukuro

Yotsuya
Shinanomachi

Chiyoda Ward

Muromachi
HonchoYaesu
Nihonbashi
Kyobashi

OtemachiMarunouchi
Yurakucho
Kojimachi
Hirakawacho
Kioicho

Chuo Ward
Toranomon
Shinbashi

ShibuyaMinato WardToyosuShibakoen
Hamamatsucho

Shibaura
KaiganApprox.supply volume：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 2018

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3. Supply trends by type of development site
In Tokyo’s central three wards, supply through rebuilding predominated. However, the amount of new office space
introduced on undeveloped/underdeveloped land (including redevelopment, etc.) is expected to grow substantially toapproximately threefold levels of the past five years.
In Tokyo’s other wards, supply on undeveloped/underdeveloped land (including redevelopment, etc.) will be approximately
80% of the total. (Chart 3-1)
Overall, supply on undeveloped/underdeveloped land (including redevelopment, etc.) exceeds the amount created byrebuilding. While rebuilding-based new office supply has been the dominant format for new office supply, this is now marking
time.

【Chart3-1】Supply volume and ratio by land for development[Tokyo’s three central wards][Other wards](10,000㎡)(10,000㎡)

400

400

350

350
63
(18%)
52
(18%)

250
200
243
(82%)

150

300

171
(47%)

Supply volume

Supply volume

300

279
(82%)

194
(53%)

100

250
200

100

50

50

0

0

2008–20122013–20172018–2022

198
(80%)

150

69
(64%)

51
(20%)

2008–2012

39
(36%)

2013–2017

105
(77%)

31
(23%)

2018–2022

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 2018

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4. Supply trends for mid-size office buildings in Tokyo’s 23 wards
This section summarizes supply trends for mid-size office buildings (building containing 5,000 to less than
10,000 square meters of office space).
Supply of mid-size office buildings in 2017 was 91,000 square meters, the fourth consecutive year in which theamount introduced was below the past 10-year average of 133,000 square meters.
While the supply in 2018 is expected to be above the past 10-year average, this amount is expected to fallshort in 2019. Supply of mid-size office buildings will be moderate. (Chart 4-1)
By supply area, Tokyo’s central three wards in 2018 and 2019 will continue to account for approximately 70% of
total supply. Development will continue to concentrate in these wards. Supply in Chuo Ward in particular will
increase significantly; Chuo Ward is expected to include the top three districts in terms of new space supply.
Minato Ward continues to maintain a stable share of the supply, while Chiyoda Ward’s share is declining
significantly. (Chart 4-3 on the next page)
Looking at supply trends by land for development, projections for 2018 and 2019 indicate the majority of supply
will come from rebuilding in both Tokyo’s central three wards and the other wards. (Chart 4-4 on the next page)
Major developers continue to increase their presence in the mid-size office building market. (Chart 4-5)

【Chart4-1】Supply trends for mid-size office buildingsin 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

27
20(10,000㎡)

Supply volume

19

14.1

18
16

12

16

13

20

11

2008-2017 average supply:
133,000㎡/year

19.5

20.0

15.0

23

30

22

22

15.5

15.4 15.3

0

10.0

9.1

8.0

5.0

.0

Other wards
Shibuya 8%3%Chiyoda
6%
Koto
7%
Shinjuku
13%

Chuo
41%

Minato22%

Other wards :69,000㎡(32%)

11.3
8.4

[2018–2019]

Tokyo’s three central wards :149,000㎡(68%)

14.5

13.1
11.2

10

Number of supply

Office supply in buildings to be constructed
Number of supply

Top three districts

SupplyYaesu•Nihonbashi•Kyobashi

32,000㎡

Muromachi•Honcho

28,000㎡

Kayabacho•Hacchobori•Shinkawa 24,000㎡'08 '09 '10 '11'12 '13 '14

'15

'16

'17

'18 '19

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2018

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【Chart4-3】Supply of mid-size buildings: Ratio by ward and top three districts[2014–2015][2016–2017]

Koto
3%
Shinjuku Other wards
3%
6%
Shibuya
Chiyoda
7%
19%

Koto
6%
Shibuya7%

Other wards
10%
Chiyoda27%

Shinjuku
13%

Shinjuku
11%

Chuo
25%

Minato37%[2018–2019]
Other wards
Shibuya 8%3%ChiyodaKoto
6%
7%

Minato
25%

Chuo
14%

Chuo
41%

Minato22%

Tokyo’s three central wards :159,000㎡ (81%)

Tokyo’s three central wards :136,000㎡ (67%)

Tokyo’s three central wards :149,000㎡ (68%)

Other wards :37,000㎡ (19%)

Other wards :68,000㎡ (33%)

Other wards :69,000㎡ (32%)

Top three districts

SupplyTop three districts

SupplyTop three districts

Supply31,000㎡

Toranomon•Shinbashi

46,000㎡

Yaesu•Nihonbashi•Kyobashi

32,000㎡

Yaesu•Nihonbashi•Kyobashi 21,000㎡

Jinbocho•Ogawamachi

16,000㎡

Muromachi•Honcho

28,000㎡

Uchikanda•Kandasudacho

Kayabacho•Hacchobori•Shinkawa 16,000㎡

Toranomon•Shinbashi

15,000㎡

Kayabacho•Hacchobori•Shinkawa 24,000㎡【Chart4-4】Supply of mid-size buildings: Ratio by type of development site (2018-19)[Three central wards][Other wards]

Undeveloped or
Underdeveloped land
16%

Undeveloped or
Underdeveloped land
31%

Rebuilding
69%

Rebuilding
84%【Chart4-5】Supply of mid-size buildings: Ratio developed by major developers*[2008–2012]

Major developers
22%•33,000㎡/year

Others78%•114,000㎡/year[2013–2017]

Major developers
28%•33,000㎡/year

Others72%•86,000㎡/year[2018–2019]

Major developers
36%•43,000㎡/year

Others64%•76,000㎡/year

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2018

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5. Conclusion
In 2017, vacancies were steadily filled in new office buildings due in part to supply being below the past
average. Vacancy rates in existing buildings also continue to decline; office market conditions are currently firm.
Projections for the office market over the next five years suggest a major influx of new supply over the three
years from 2018. However, preoccupancy rates are high at many of these buildings. For the two years from2021, supply is expected to decline sharply, to roughly half the past average. Underpinned by vigorous demand,robust market conditions are expected to continue.
One factor driving this demand is companies seeking office environments that support diverse working styles
and promote creativity—primarily companies seeking to apply workstyle reforms to strengthen productivity. This
trend is expected to continue gaining momentum. (See the Appendix on page 11.)
To accommodate such needs, future offices will be asked to provide “creative platform functions in urban
areas” that improve the well-being of staff, provide a sophisticated workplace, and promote socializing amongpeople with diverse perspectives through cutting-edge technologies and open communities that help generate
new encounters and ideas in various scenarios.
This is a key function for urban office spaces in attracting companies and talent from around the world. It’s
also an issue that needs to be addressed more energetically, through public-private partnerships, to further
strengthen international competitiveness.

【Chart 5-1】Office stock in Tokyo’s three central wards

Minato Ward
Chuo Ward
Chiyoda Ward

(10,000㎡)
5,000
3,710

4,000

Office space

3,968

4,405

4,705

4,584

3,195
3,000
2,000
1,000
0

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
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 Ward12%

Growth rate

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

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16
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 2018

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Appendix Excerpt from 2017 Tenant Questionnaire
The following is an excerpt from the results of a questionnaire of tenant companies conducted from August to
October 2017.
Regarding “Promoting working environments and other aspects that encourage diverse and flexible working styles,”
36% of the companies responding answered “Currently implementing”; 27% answered “Currently considering”; andjust 4% answered “Don’t feel it’s necessary.” Consistent with recent societal attitudes, the results suggest strong
interest in the theme of diverse working styles. (Chart A)
Chart B addresses the implementation of functions that promote diverse working styles. Functions have beenreorganized into “Expanding office functions,” “Promoting digitalization,” and “Developing personnel systems.”
Compiling the results shows implementation status clearly differs among the three functions. (Chart C)
However, the implementation of certain functions related to “Expanding office functions” has progressed compared
to 2013 (Chart D).

[Chart B] Initiative Level by Item (n=255)
Expanding Office Functions[Chart A] Initiative Level for “Promoting Diverse
Working Styles” (n=267)
4%
13%
36%

27%

4% 7%

19%

“Refresh” spaces

43%

Social spaces

39%

Concentrated work spaces

24%“Free address”

28%
15%

Satellite office

Promoting Digitalization

19%

Fitness spaces

69%
6%
8%
12%
13%

12%

Telecommuting

36%

Internal SNS

35%

Don’t know whether it’s necessary
Don’t feel it’s necessary

40%

14%

45%
60%

9%

12%

36%

9%

46%

74%
44%

Remote attendance management

Developing Personnel Systems

A management issue, but not yet considered

29%

23%

15%

8% 7%
19%

11%

67%

Distribution of smart devices

Currently considering

26%

24%

13%

Web conferencing

Currently implementing

24%

9%

53%

Electronic approval

13%

12% 4% 12%

Permit side jobs/dual professions

8% 6%

Flextime program

48%

11% 6%

Restrictions on overtime

52%

16%

0%
Implemented/planned

11%

14%

14%

21%

72%
64%

Short working hours program

11%

26%

25%
Considering implementation

50%

23%
35%

12%

19%

75%

100%

Want to implement

Will not implement[Chart C]
Expanding Office Functions

27%

11%

43%

52%

Promoting Digitalization
Developing Personnel Systems

0%
Implemented/planned

19%
12%

44%

10%

25%

50%

Considering implementation

11%

9%

26%
37%

75%

Want to implement

100%
Will not implement[Chart D]
Fitness spaces

3%9%Social spaces

36%
32%
28%

Concentrated work spaces“Free address”
Satellite office

22%
10%

37%

19%

Telecommuting

0%

45%

50%

22%

10%

30%

40%

Most recent survey

20%

2013

50%

60%

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 20189/9