Survey of Large-Scale Office Building Supply
in Tokyo’s 23 Wards 2021
September 27, 2021
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 2020]

Supply of large-scale office buildings hovers at a low level~ Lowest-ever levels in 2021, 2022, and 2024 ~Main Results of This Survey
1. Supply of large-scale office buildings
In 2020, large-scale office buildings introduced to market in Tokyo’s 23 wards added 1,850,000m² to
the region’s total inventory of office space, the second-highest annual figure over the past 20 years. The
amount of new space added is expected to drop sharply to 610,000m² in 2021, and is projected to stay
low with 510,000m² in 2022, which is the lowest level in the past 20 years. The figure is projected toincrease significantly to 1,450,000m² in 2023, but decline to 540,000m² in 2024, which is thelowest-ever level. In 2025, the figure is expected to increase once again to 1,340,000m². The supply forfive years from 2021 is projected to hover at a low level.

2. Supply trends by area
From 2021, the percentage of new space in Tokyo’s three central wards will consistently exceed 70%.
Of the three wards, Minato Ward’s share is expected to rise and it will account for more than 50% of thetotal in Tokyo’s 23 wards. The supply trends by district suggest that the amount of new office space
introduced in Otemachi, Marunouchi, and Yurakucho will subside, and that Toranomon and Shimbashi
in Minato Ward will be the highest. In the said ward, development in Shirokane and Takanawa, Shibaand Mita, Akasaka and Roppongi, and Shibaura and Kaigan will become active.

3. Supply trends by type of development site
In the three central wards, “Rebuilding” was previously the pillar of supply. However, the share of“Undeveloped/underdeveloped land: Redevelopment, etc.” has been increasing, and during theperiod from 2021 to 2025, the share of “Undeveloped/underdeveloped land: Redevelopment, etc.” isprojected to account for over 60% of supply. Outside the three central wards,“Undeveloped/underdeveloped land: Redevelopment, etc.” is projected to continue to be the pillar of
supply.

4. Supply of mid-size office buildings
The figure for new office space introduced in mid-scale office buildings in 2020 was 80,000m², andin 2021 it will be 69,000m², which shows that the figures are lower than those of previous years fortwo consecutive years. The figure for new office space introduced in mid-scale office buildings in
2022 is projected to go back up to 106,000m², but it is lower than the average for the past ten years(113,000m²), showing a gradual decrease in supply.

Conclusion
The supply of large-scale office buildings in 2020 was the second-highest in the past 20 years, but most of thebuildings started operations with no vacancies. The number of contracts concluded has also been increasing in
2021, but the number of the contract cases concluded for 2022 and after remains low.
Looking at the trends of existing buildings, return of some surplus floor areas generated by the restrictions on
going out to work for the purpose of measures against infections have been accelerating since mid-2020, andthere are many cases where consolidation to a center office is planned as a temporary response. Although there
were some large-scale returns aiming at reducing the number of offices themselves while announcing a shift to awork style centered on remote work, such trends have been limited to some industries. Companies keep a"wait-and-see attitude" for both new buildings and existing buildings.
For future office buildings, we will need to grasp the background of companies’ taking a “wait-and-see attitude”
and respond to it. Companies are struggling to come up with workplace strategies in the hybrid work age that willbring diversification in the way they work and where they work. Office developers are increasingly required topresent how center offices positioned in the center of workplace strategies should be and to solve issues facedby companies through creating and improving the office environment that embodies it so that they will contributeto the growth of those companies. It is important to support the construction of attractive center offices where
workers will want to come.

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
The amount of new space introduced in large-scale office buildings in Tokyo’s 23 wards in 2020 was 1,850,000m²,
the second-highest supply over the past 20 years. Looking at the future trends, the figure in 2021 will stay at 610,000m²,
and the figure is projected to decline to 510,000m² in 2022, which suggests that the lowest level of supply since 2001 is
expected to continue for two consecutive years. In 2023, the figure is projected to increase to 1,450,000m², but in 2024
the figure is projected to decline to 540,000m², the lowest-ever level. In 2025, the figure is expected to increase once
again to 1,340,000m². The average supply in the next five years will be 890,000m²/year, which is lower than the
average of the past 20 years by 20% or more. This trend in which the supply in the next five years falls below theaverage of the past ten years will remain for four consecutive terms. The supply of large-scale office buildings willremain at a low level for a while. (Chart 1-1)
As a result of calculating shares of new office space after tallying new office space 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 consistently exceeds 70% from 2021. Tokyo’s three wards will remain the pillarof 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,
we have 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 2001 to 2005, doubled to 60% during the period from 2016 to 2020, and the equivalent share will
be constant during the period from 2021 to 2025. The trend of large-scale office buildings is toward ultra-large-scalebuildings. (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

40

Office supply in buildings to be constructed

36

29

29

27

29

32

Number of supply

30

26

22

(10,000m²)

21

20

19

250

23

22

22

27

22

21

21

18

14

19
14
11

221
2001-2020 average supply:
1,080,000m²/year

200

20
10

12

0

185

2021-2025 average supply:
980,000m²/year181

Supply volume

162
147

150
118
100

119

118

89

145
134

126
118
90

82

92

99
87

82

76
66

64

61

54

51

50

0

'01 '02 '03'04 '05 '06 '07 '08 '09 '10 '11【Chart 1-2】 Tokyo’s three central wards
and other wards
81%(500,000m²)

'21
'22

74%
(370,000m²)

'23

79%
(1,140,000m²)

19%(110,000m²)'12 '13 '14 '15 '16 '17 '18'20 '21 '22'23 '24 '25【Chart 1-3】 Supply and ratio bybuilding scale'01−'0516%(130,000m²)'19'06−'1021%(310,000m²)'11−'1530%(380,000m²/year)37%(380,000m²/year)26%(330,000m²/year)

44%(550,000m²/year)

19%(200,000m²/year)

36%(420,000m²/year)

44%(450,000m²/year)27%(310,000m²/year)37%(430,000m²/year)

'24

81%
(440,000m²)

19%(100,000m²)'16−'2058%(680,000m²/year)19%
23%(230,000m²/year) (280,000m²/year)

'25

82%
(1,100,000m²)

18%(240,000m²)'21−'2558%(520,000m²/year)19%
23%(160,000m²/year) (210,000m²/year)

0%

25%

50%

75%

100%

0%

25%

50%

75%

100%

Buildings of 100,000m² or larger
Tokyo’s three central wards

Other wards

Buildings of 50,000 - 99,999m²
Buildings of less than 50,000㎡

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2021

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2. Supply trends by area

Continued from the previous page, in order to further explore the supply trends, we calculated the supply share forthe past five years and the next five years by ward. In the past five years, the share of Tokyo’s three central wards was
70%, but in the next five years it will be 80%. Of the three central wards, Minato Ward’s share has been increasing, and
it is expected to exceed 50% during the period from 2021 to 2025. (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, willsubside, while the supply in Toranomon and Shimbashi will be the highest. During the period from 2021 to 2025,
Shirokane and Takanawa, Shiba and Mita, Akasaka and Roppongi, and Shibaura and Kaigan, all of which are also in
Minato Ward, are on the list of top ten districts, and development in the said ward will get active. (Chart2-2)【Chart 2-1】Supply of large-scale office space by ward
［2016−2020］［2021−2025］

Tokyo’s three central wards：
4,210,000m²（71%）
Other wards：1,730,000m²（29%）

Tokyo’s three central wards：
3,550,000m²（80%）
Other wards： 900,000m²（20%）

Supply (10,000m²)

Other wards
5%
Koto
4%
Shinagawa5%
Shibuya10%

Chiyoda33%

Shinjuku
5%
Minato
27%

Chuo
12%

Chiyoda

194

Chuo

69

Minato158

Shinjuku

28

Shibuya60

Shinagawa

31

Koto

24

Others29

Supply (10,000m²)
ChiyodaOther wards
3%

Koto
Shinagawa 5%

3%83

Minato227

Shinjuku

15

Shibuya23

Shinagawa

14

Chiyoda10%

Shibuya
5%

Chuo
19%

Shinjuku
3%
Minato
51%

45

Chuo

Koto

23

Others15【Chart 2-2】Top ten districts［2016−2020］（10,000m²） 143
（24％）
70

2016
2017
2018
2019
2020

Supply volume

60

50
（8％）

50

45
（8％）

40

42
（7％）

37
（6％）

36
（6％）

30

29
（5％）

27
（5％）

Osaki
GotandaKojimachi
Hirakawacho
Kioicho

22
（4％）

22
（4％）

ToyosuMuromachi
Hommachi20
100Otemachi Tranomon
Marunouchi Shimbashi
Yurakucho

Shibaura
KaiganShibuya91（20％）（10,000m²）
70

Supply volume

60

Yaesu
Akasaka
Roppongi Nihombashi
Kyobashi［2021−2025］
2021
2022
2023
2024
2025
2022

74
（17％）
47
（11％）

50
34
（8％）

40

27
（6％）

30

23
（5％）

23
（5％）

19
（4％）

15
（3％）

14
（3％）

20
10
0

Yaesu
TranomonShirokane
Shimbashi Nihombashi Takanawa
KyobashiRank() for previous
1（2）timeframe

2（6）

3（-）

OtemachiAkasaka
Roppongi Marunouchi
Yurakucho

Shiba
Mita
4（-）

5（5）

6（1）

ShibuyaToyosuShibaura
KaiganOsaki
Gotanda

7（4）

8（9）

9（3）

10（7）

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2021

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【Chart 2-3】Supply volume in the key business districts［2016−2020］

Kandajimbocho
Kandaogawamachi

Chiyoda Ward
Yotsuya
Shinanomachi
Sendagaya
Jingumae

Muromachi
HommachiOtemachiMarunouchi
Yurakucho
Kojimachi
Hirakawacho
KioichoYaesu
Nihombashi
Kyobashi

Chuo Ward

Ginza
Akasaka
Roppongi

ToyosuToranomon
Shimbashi

Shibuya

Shibakoen
Hamamatsucho

Minato Ward
Shibaura
KaiganApprox. supply volume：500,000m²〜：300,000〜500,000m²：200,000〜300,000m²

Osaki
Gotanda：100,000〜200,000m²［2021−2025］

Chiyoda Ward
OtemachiMarunouchi
Yurakucho

Nishishinjuku

Yaesu
Nihombashi
Kyobashi

Chuo Ward
Akasaka
Roppongi
ShibuyaToyosuToranomon
Shimbashi

Shibakoen
Hamamatsucho

Minato Ward
Shiba
Mita

Approx. supply volume

Shirokane
Takanawa：500,000m²〜：300,000〜500,000m²

Osaki
Gotanda：200,000〜300,000m²：100,000〜200,000m²

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2021

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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 2011, “Rebuilding” was previously thepillar of supply in the three central wards. However, we can see that the office space created on“Undeveloped/underdeveloped land: Redevelopment, etc.” has been increasing. During the period from 2021 to 2025,
office space created on “Undeveloped/underdeveloped land : Redevelopment, etc.” will account for more than 60% of
all new office space.
Except the three central wards, buildings on “Undeveloped/underdeveloped land: Redevelopment, etc.” hascontinued to be the major source for new office space since 2011. In the 23 wards, “Undeveloped/underdeveloped land:
Redevelopment, etc.” has been the pillar of supply of lands for development for new office space. (Chart3-1)【Chart3-1】Supply volume and ratio by land for development［Othter wards］[Tokyo’s three central wards]

100%

100%
19％
（690,000㎡）

80%

31％
（1,320,000㎡）80%
63％（2,250,000㎡）

60%

40%

60%

81％
（2,900,000㎡）

75％（1,290,000㎡）

69％（620,000㎡）

40%

69％
（2,890,000㎡）
37％（1,300,000㎡）

20%

77％
（1,710,000㎡）

20%
23％（530,000㎡）

0%25％（440,000㎡）

31％（280,000㎡）

2016-20202021-20250%
2011-20152016-20202021-2025

2011-2015

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 2021

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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 figure for new office space introduced in mid-scale office buildings in 2020 was 80,000m², and that in 2021 will
be 69,000m², which shows that the figures are lower than those of the previous years for two consecutive years. The
figure for new office space introduced in mid-scale office buildings in 2022 is projected to go back up to 106,000m², but
it is expected to be lower than the average for the preceding ten years (113,000m²), showing a gradual decrease in the
supply of mid-scale office buildings. (Chart4-1)
Looking at the percentage of supply by ward during the period from 2021 to 2022, Minato Ward has the largest sharewith 30%, and Shiba and Mita, and Toranomon and Shinbashi in the said ward are ranked among the top three districts
in terms of supply by district. (Chart4-2)
Trends in shares of new office space by ward show that the share corresponding to the three central wards hover
about 70% of the total, which is the pillar of supply. Since 2019, new office space in Minato Ward has been the main
supply. (Chart4-3 on following page)
Looking at the supply trends for mid-scale office buildings by type of development site, office space in rebuilt
buildings (“Rebuilding”) is the main source of new space in mid-scale office buildings in the 23 wards overall, whichshows a trend distinct from the trend for large-scale office buildings, for which construction on“Undeveloped/underdeveloped land” is the main category. (Chart4-4 on following page)
As for mid-scale office building projects, the share of major developers, which has been increasing in recent years,
will rise sharply to more than half during the period from 2021 to 2022. (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［2021−2022］

30
22
22

17

16

19

16

16

13

12

20
10

12 12
9

0

(10,000m²)

Number of supply

Number of supply

Other wards
23%

Koto
3%
Shinagawa
3%

Chuo
18%

Shibuya3%

20.0
2011-2020 average supply:
113,000m²/year

15.3

15.5

Chiyoda19%

Minato28%

Shinjuku
3%

Supply volume

15.0
13.1

12.9

Tokyo’s three central wards:
114,000m²（65%）

11.3

11.2

10.6
10.0

9.1

8.4

8.8

Other wards:
61,000m²（35%）

8.0
6.9

5.0

.0

'11

'12 '13 '14

'15

'16

'17

'18 '19'20'21 '22

Top three districts

SupplyHoridomecho
・Higashinihombashi

21,000m²

Shiba・Mita

19,000m²

Toranomon・Shimbashi

17,000m²

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2021

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【Chart4-3】 Supply of mid-size buildings: Ratio by ward and top three districts［2017−2018］
Shibuya2%［2019−2020］［2021−2022］

Other wards
5%
Koto
5%

Chiyoda27%

Shinjuku
7%

Shinjuku
18%
Minato
10%

Koto
3%

Other wards
10% Chiyoda
11%
Shibuya
7%

Chuo
33%

Shinagawa3%

Other wards
23%

Chiyoda
19%

Chuo
23%

Chuo
18%
Shibuya3%

Minato42%

Minato28%

Shinjuku
3%

Tokyo’s three central wards:
154,000m²（70%）

Tokyo’s three central wards:
126,000m²（75%）

Tokyo’s three central wards:
114,000m²（65%）

Other wards:
66,000m²（30%）

Other wards:
42,000m²（25%）

Other wards:
61,000m²（35%）

Top three districts

SupplyTop three districts

SupplyTop three districts

SupplyKayabacho・Hacchobori・Shinkawa 40,000m²

Toranomon・Shimbashi 31,000m²

Horidomecho・Higashinihombashi

21,000m²

Muromachi・Honcho

28,000m²

Yaesu・Nihombashi・Kyobashi 26,000m²

Shiba・Mita

19,000m²

Shinjuku

26,000m²

Akasaka・Roppongi

Toranomon・Shimbashi 17,000m²

16,000m²【Chart4-4】 Supply of mid-size buildings: Ratio by type of development site (2020-21)［Three central wards］［Other wards］

Undevelopedor
Underdeveloped
land
17%

Undevelopedor
Underdeveloped
land
40%

Rebuilding
83%

Rebuilding
60%【Chart4-5】 Supply of mid-size buildings: Ratio developed by major developers*［2011−2015］

Major
developers
27%・35,000m²/year［2016−2020］［2021−2022］

Major
developers
30%・30,000m²/year
Others
50%・43,000m²/year

Others73%・92,000m²/year

Major
developers
50%・44,000m²/year

Others70%・70,000m²/year* Major developers: General developers with paid-in capital of 10.0 billion yen or more

Survey of Large-Scale Office Building Supply in Tokyo’s 23 Wards 2021

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5. Conclusion
The supply of large-scale office buildings in 2020 was 1,850,000 m², which is the second-highest in the past 20 years,
but most of the buildings started operations with no vacancies. In 2021, 80% of the supply of new space has been
contracted, but the number of the contract cases concluded will remain low from 2022. The strong demand for new
office buildings began to stagnate rapidly due to the impact of COVID-19.
Looking at the trends of existing buildings, return of some surplus floor areas generated by the restrictions on goingout to work for the purpose of measures against infections have been accelerating since mid-2020, and there are manycases where consolidation to a center office is planned as a temporary response. Although there were some large-scale
returns aiming at reducing the number of offices themselves while announcing a shift to a work style centered onremote work, such trends have been limited to some industries. Companies keep a "wait-and-see attitude" for both newbuildings and existing buildings.
In some years in the future, except 2023, supply of new space introduced in large-scale office buildings will record
the lowest-ever level and the average of supply will continue to be lower than that of the past 20 years, but the trend of
gradual increase in stock will be maintained（Chart5-1, 5-2）. As mentioned in this report, the supply trends by type ofdevelopment site from 2021 show that “Undeveloped/underdeveloped land” will be the major source and "Rebuilding"will decrease. Therefore, stock will increase in central Tokyo while the supply of new buildings is secured to a certain
extent.
Amid the continuing supply of office space in central Tokyo such as this, for future office buildings, we need to grasp
the background of companies’ taking a “wait-and-see” attitude and respond to it. As companies have various
remote-work-related problems that they are forced to face in the COVID-19 pandemic, including increased stress due tolack of exercise and changes in work environments, and reduced engagement and creativity of workers due to poor
communication, companies are looking for ways to solve these problems. That is to say, companies are struggling tocome up with workplace strategies in the hybrid work age that will bring diversification in the way they work and where
they work. Office developers are increasingly required to present how center offices positioned in the center ofworkplace strategies should be and to solve issues faced by companies through creating and improving the officeenvironment that embodies it so that they will contribute to the growth of those companies. It is important to support theconstruction of attractive center offices where workers will want to come.

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

（10,000㎡）
5,000

4,802

4,587

4,568
4,292

Office space

4,000

3,897
3,589

3,000
2,000
1,000
0
'95 '96'97 '98 '99 '00 '01'02 '03'04 '05 '06'07 '08 '09 '10

'11

'12

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

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%
'95 '96 '97 '98 '99'00 '01'02 '03'04 '05 '06 '07'08 '09 '10'11 '12 '13 '14 '15 '16'17 '18 '19-2%
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 2021

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