Xymax Real Estate Institute

RESEARCH REPORTSupply of New Office Space 2023
January 18, 2023

Xymax Real Estate Institute (“Xymax REI”) hereby releases the Supply of New Office Space 2023 covering the 23wards of Tokyo (“Tokyo 23 Wards”) and the city of Osaka (“Osaka City”). The supply of new office space, which
is an aggregation of rentable areas of offices that will be newly constructed (hereinafter, “new supply”), has adirect impact on the supply-demand balance of the office market going forward. Each year, Xymax REIaggregates the rentable areas of office space in buildings with a gross floor area (“GFA”) of 3,000 tsubo or morethat are mainly for office-use and are to be completed in the Tokyo 23 Wards and Osaka City.
1 tsubo = approx. 3.3 sqm

Main Findings
1. TOKYO 23 WARDS | Supply of New Office Space 2023
New supply in 2023 is expected to be 224,000 tsubo, exceeding the 10-year average of 159,000
tsubo. 2023 is expected to see the largest new supply in the next four years (from 2023 to 2026).

New supply between 2023 and 2026 is expected to average 158,000 tsubo per year, roughly equal
to the 10-year average (159,000 tsubo per year).

86% of the new supply between 2023 and 2026 is concentrated in the 5 central wards of Chiyoda,Chuo, Minato, Shinjuku, and Shibuya.

New supply between 2023 and 2026 is expected to amount to 632,000 tsubo, with the percentageof new supply to the office stock at the end of 2022 of 12.98 million tsubo (new supply rate) expected
to be approximately 4.9% (1.2% per year).

2. OSAKA CITY | Supply of New Office Space 2023
New supply of 6,000 tsubo is scheduled in 2023.

New supply between 2023 and 2026 is expected to average 35,000 tsubo per year, exceeding the10-year average of 19,000 tsubo per year.

The average new supply for 2023–2026 of 35,000 tsubo per year is 22% of that of the Tokyo 23
Wards (158,000 tsubo per year).



New supply between 2023 and 2026 is expected to amount to 140,000 tsubo, with the percentageof new supply to the office stock at the end of 2022 (new supply rate) expected to be around 4.9%
(1.2% per year).

Supply of New Office Space 2023
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness. This report may not be
reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2023 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate InstituteTOKYO 23 WARDS | Supply of New Office Space 2023
The new supply of office buildings with a GFA of 3,000 tsubo or more is expected to be 224,000 tsubo in theTokyo 23 Wards in 2023, the second largest supply in the past 10 years after 2020 (275,000 tsubo) (Figure 1).
New supply between 2023 and 2026 is expected to total 632,000 tsubo and average 158,000 tsubo per year,roughly equal to the 10-year average.
The average new supply of medium-sized buildings with a GFA between 3,000 tsubo and 10,000 tsubo isexpected to be 20,000 tsubo per year for 2023–2026, less than the average of 23,000 tsubo per year for 2013–
2022. On the other hand, the average new supply of large buildings with a GFA of 10,000 tsubo or more for2023–2026 (139,000 tsubo per year) is expected to exceed the average for 2013–2022 (136,000 tsubo per year).
The new supply rate, which is the percentage of new supply (in 2023–2026) to the office stock at the end of2022 (12.98 million tsubo), is expected to be approximately 4.9% (1.2% per year).
Figure 1: New Supply in Tokyo 23 Wards (Net Rentable Area)

Supply of New Office Space 2023
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness. This report may not be
reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2023 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate InstituteIn terms of new supply in 2023–2026 by ward, 75% of the total is expected to be in the 3 central wards(Chiyoda, Chuo, and Minato) (Figure 2). Minato Ward accounts for 55% of total, the largest share in new supply
among the wards. When we look at the 5 central wards (the 3 central wards plus Shinjuku and Shibuya), 86% of
the total new supply is expected in this area, indicating that supply is concentrated in central Tokyo.
Figure 2: New Supply by Ward (2023–2026)(Figures in brackets represent the percentage of total new supply in 2023–2026)

By area, new supply is expected mainly in the Nihombashi-Yaesu-Kyobashi, Roppongi-Azabu, Toranomon,
Shiba-Mita, and the Shinagawa Station East Exit areas (Figure 3).
Figure 3: New Supply by Major Area (2023–2026)

The highlights of the major areas are as follows:〇The Nihombashi-Yaesu-Kyobashi area has the largest supply of 88,000 tsubo. Large supply is scheduled in
2025 from the Tokyo Ekimae Yaesu 1-chome East District Urban Redevelopment Project districts A and B, and in
2026 from the Nihombashi 1-chome Central District Urban Redevelopment Project district C.
〇In Roppongi-Azabu, large supply is scheduled in 2023 from the Toranomon & Azabudai District Urban
Redevelopment Project district A.
〇The Toranomon area is undergoing integrated redevelopment, with supply expected to continue in 2023
from large-scale redevelopment projects such as the Toranomon Hills Station Tower.
〇In Shiba-Mita, large supply is scheduled in 2023 from the Tokyo Mita Redevelopment Project (tentativename).
〇At Shinagawa Station East Exit, large supply is scheduled in 2025 and 2026 from Shinagawa Development

Supply of New Office Space 2023
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness. This report may not be
reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2023 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate InstituteProject Phase I.

OSAKA CITY | Supply of New Office Space 2023
As for new supply of office buildings with a GFA of 3,000 tsubo or more in Osaka City, a large supply of 90,000
tsubo is scheduled in 2024, bringing the expected total new supply in 2023–2026 to 140,000 tsubo (Figure 4).
The average for 2023–2026 is expected to be 35,000 tsubo per year, approximately 1.8 times the 10-year averageof 19,000 tsubo per year and 22% of the average new supply in the Tokyo 23 Wards for 2023–2026 of 158,000
tsubo per year.
The new supply rate, which is the percentage of new supply (in 2023–2026) to the office stock at the end of2022 (2.83 million tsubo), is expected to be approximately 4.9% (1.2% per year). This is equal to the new supply
rate of the Tokyo 23 Wards.
Figure 4: New Supply in Osaka City (Net Rentable Area)

Supply of New Office Space 2023
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness. This report may not bereproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2023 Xymax Real Estate Institute Corporation. All rights reserved.

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By area, large supply is scheduled in the Umeda, Yodoyabashi, Honmachi, Dojima-Nakanoshima, Shin-OsakaMinami, Namba, and Shinsaibashi areas, in this order (Figure 5).
Figure 5: New Supply by Area (2023–2026)

The highlights of the areas are as follows:〇Umeda is expected to see the largest supply of 68,000 tsubo. Large supply is scheduled in 2024 from theUmeda 3-chome Plan (tentative name) and the Umekita Phase 2 District Development Project.
〇In Yodoyabashi, large supply is scheduled in 2025 from the Yodoyabashi Project (tentative name) and theYodoyabashi Station West District Urban Area Redevelopment Plan.

Supply of New Office Space 2023
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness. This report may not be
reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2023 Xymax Real Estate Institute Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute
Survey Overview
Survey period

December 2022

Coverage23 wards of Tokyo, city of Osaka

Target properties

Properties with a gross floor area of 3,000 tsubo or more that are used mainly as office space(excludes owner-occupied buildings)

Target data

Net rentable area for offices (tsubo)

Survey method

Mostly based on publicly available information such as newspaper articles, with some fieldsurveys and interviews with business operators

Remarks* This survey targets the areas of buildings to be newly supplied. Note that this is not a complete
survey.
* Published rentable areas are used in the study, if available. If not, the study uses the area
estimated from gross floor area based on a formula derived from a joint study with the Naoki
Kato Lab, Architecture and Architectural Engineering, Kyoto University Graduate School ofEngineering.
* The amount of new supply in this survey is an estimate at the time of the survey. The figure ofnew supply fluctuates as information is added and updated on a daily basis.
* The sum figures may not match due to rounding.

For further inquiries please contact below:
Xymax Real Estate Institutehttps://soken.xymax.co.jp | E-MAIL: info-rei@xymax.co.jp

Supply of New Office Space 2023
The contents of this report are as of the time of writing. Xymax Real Estate Institute does not guarantee their accuracy or completeness. This report may not be
reproduced, cited, transmitted, distributed, or reprinted without prior permission of Xymax Real Estate Institute.
Copyright © 2023 Xymax Real Estate Institute Corporation. All rights reserved.

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