Xymax Real Estate Institute

RESEARCH REPORT

Office Stock Pyramid 2023
January 18, 2023

Xymax Real Estate Institute (“Xymax REI”) hereby releases Office Stock Pyramid 2023, which covers the 23wards of Tokyo (“Tokyo 23 Wards”) and the city of Osaka (“Osaka City”). The Office Stock Pyramid illustrates thedistribution of the rentable area and the number of buildings with a gross floor area (“GFA”) of 300 tsubo or
more that are mainly for office-use. The data is distributed based on building age and categorized by size ofbuilding.
1 tsubo = approx. 3.3 sqm

Main Findings
1. TOKYO 23 WARDS | Comparison of Small & Medium and Large BuildingsThe office stock at the end of 2023 will be 13.11 million tsubo on a net rentable area basis, of whichlarge buildings account for slightly more than small & medium buildings at 7.04 million tsubo (54%)
in comparison to the latter’s 6.07 million tsubo (46%).

In terms of number of buildings, the office stock for 2023 will be 9,400 buildings, of which small &medium buildings account for 92% (8,642 buildings).

The average building age is 33.4 years for the entire stock, 34.2 years for small & medium buildings,
and 25.0 years for large buildings. Office stock is especially aging among small & medium buildings.

2. TOKYO 23 WARDS | Comparison of 5 Central Wards and 18 Peripheral Wards


The office stock of the 5 central wards (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya Wards)
consists of 6,862 buildings with a total net rentable area of 9.81 million tsubo, accounting for 75%of total in terms of net rentable area and 73% in terms of number of buildings, while the office stockof the 18 peripheral wards consists of 2,538 buildings with a total net rentable area of 3.30 million
tsubo.

The average building age is 33.6 years in the 5 central wards and 33.2 years in the 18 peripheral
wards.

3. OSAKA CITY | Comparison of Small & Medium and Large Buildings
The office stock at the end of 2023 will be 2.86 million tsubo on a net rentable area basis, of whichsmall & medium buildings and large buildings account for roughly the same amount at 1.42 million
tsubo (50%) and 1.44 million tsubo (50%), respectively.

In terms of number of buildings, the office stock for 2023 will be 1,769 buildings, of which small &medium buildings account for 89% (1,578 buildings).

The average building age is 34.8 years for the entire stock, 35.3 years for small & medium buildings,
and 31.1 years for large buildings.

Office Stock Pyramid 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 | Comparison of Small & Medium andLarge Buildings
The office stock in the Tokyo 23 Wards as of the end of 2023 will be 13.11 million tsubo on a net rentable areabasis (Figure 1). Of this, the stock of small & medium buildings with a GFA between 300 and 5,000 tsubo is 6.07
million tsubo, 46% of total. Large buildings with a GFA of 5,000 tsubo or more account for 7.04 million tsubo, or54% of total, slightly more than small & medium buildings.
The average building age of the entire office stock is 33.4 years. The average age of the stock of small &medium buildings (34.2 years) is older than that of large buildings (25.0 years).
Figure 1: Tokyo 23 Wards Office Stock Pyramid 2023 (Net Rentable Area)

Office Stock Pyramid 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
In terms of the number of buildings, the office stock of the entire Tokyo 23 Wards is 9,400 buildings, of whichsmall & medium buildings account for a majority with 8,642 buildings (92%), while large buildings number 758
buildings (8%) (Figure 2).
Figure 2: Tokyo 23 Wards Office Stock Pyramid 2023 (Number of Buildings)

Many small & medium buildings were completed around the time of the bubble economy period (i.e.,between 1986 and 1997; building age 26–37 years), with 5.06 million tsubo, or 83% of the buildings, aged 20years or older. New supply has been low after the bubble economy period, with only 1.01 million tsubo aged
less than 20 years. Buildings aged 20 years or older also account for a large majority of small & medium buildings
in terms of number, with 7,534 buildings aged 20 years or older and 1,108 buildings younger than 20 years old.
As for large buildings, 3.91 million tsubo are aged 20 years or older, while 3.13 million tsubo are aged lessthan 20 years. Compared to the office stock as of the end of 2022, the percentage of large buildings aged 20years or older increases by 4 percentage points to 56%. In terms of the number of buildings, 460 are aged 20years or older and 298 are aged less than 20 years. Buildings aged 20 years or older increase by 3 percentage
points to 61%. This is because the age of properties completed in 2003, a year when there was mass supply,reaches 20 years or older.

Office Stock Pyramid 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 | Comparison of 5 Central Wards and 18
Peripheral Wards
Here we examine the office stock by sorting the 23 wards into 5 central wards (Chiyoda, Chuo, Minato,Shinjuku, and Shibuya Wards) and 18 peripheral wards. The office stock in the 5 central wards of Tokyo as of theend of 2023 will be 9.81 million tsubo based on net rentable area, which accounts for 75% of the entire officestock of the Tokyo 23 Wards (13.11 million tsubo) (Figure 3). This is broken down into 4.47 million tsubo (46%)
of small & medium buildings and 5.34 million tsubo (54%) of large buildings. The average building age of theentire stock of the 5 central wards is 33.6 years. Small & medium buildings are aging more rapidly than large
buildings, with the average age being 34.2 years for the former and 25.7 years for the latter.
Figure 3: Tokyo 5 Central Wards Office Stock Pyramid 2023 (Net Rentable Area)

The number of buildings is 6,862 for the 5 central wards, which is 73% of the stock of the Tokyo 23 Wards(9,400 buildings) (Figure 4). Small & medium buildings account for 6,310 (92%) and large buildings 552 (8%).
Figure 4: Tokyo 5 Central Wards Office Stock Pyramid 2023 (Number of Buildings)

Office Stock Pyramid 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 InstituteMeanwhile, the office stock in Tokyo’s 18 peripheral wards at the end of 2023 will be 3.30 million tsubo on anet rentable area basis, 25% of the stock of the entire Tokyo 23 Wards (13.11 million tsubo) (Figure 5). Of this,small & medium buildings account for 48% with a net rentable area of 1.60 million tsubo, while large buildings
account for 52% with 1.70 million tsubo. The average building age of the entire stock of the 18 peripheral wards
is 33.2 years, which is not that different from the 33.6 years for the 5 central wards. By building size, the averageage of small & medium buildings is 34.0 years, while that of large buildings is 23.3 years.
Figure 5: Tokyo 18 Peripheral Wards Office Stock Pyramid 2023 (Net Rentable Area)

The number of buildings is 2,538 for the entire 18 peripheral wards, of which 2,332, or 92%, are small &medium buildings, and 206, or 8%, are large buildings (Figure 6).
Figure 6: Tokyo 18 Peripheral Wards Office Stock Pyramid 2023 (Number of Buildings)

Office Stock Pyramid 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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OSAKA CITY | Comparison of Small & Medium and Large
Buildings
The office stock in Osaka City at the end of 2023 will be 2.86 million tsubo on a net rentable area basis (Figure7). Of this, small & medium buildings with a GFA between 300 and 5,000 tsubo and large buildings with a GFAof 5,000 tsubo or more account for roughly the same amount at 1.42 million tsubo (50%) and 1.44 million tsubo(50%), respectively. The office stock of Osaka City (2.86 million tsubo) is 22% of that of the Tokyo 23 Wards(13.11 million tsubo).
The average building age of the entire office stock is 34.8 years. The average age of small & medium buildings
is 35.3 years and that of large buildings is 31.1 years.
By building age, office stock aged 20 years or older accounts for 89% of small & medium buildings, with 1.26
million tsubo aged 20 years or older and 0.16 million tsubo aged less than 20 years, indicating that supply has
been limited over the past 20 years. Among large buildings, office stock aged 20 years or older accounts for72%, with 1.03 million tsubo aged 20 years or older and 0.41 million tsubo aged less than 20 years old.
Figure 7: Osaka City Office Stock Pyramid 2023 (Net Rentable Area)

Office Stock Pyramid 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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In terms of the number of buildings, Osaka City as a whole has 1,769 buildings, of which small & medium
buildings account for 1,578 (89%) and large buildings 191 (11%) (Figure 8).
Figure 8: Osaka City Office Stock Pyramid 2023 (Number of Buildings)

Office Stock Pyramid 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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RESEARCH REPORT｜Xymax Real Estate Institute
Survey Overview
Survey period

December 2022

Coverage

23 wards of Tokyo, city of Osaka

Office buildings with a gross floor area of 300 tsubo or more as of the end of 2023,
Target properties

completed (or scheduled to be completed) in and after 1946 and used mainly as officespace (excludes owner-occupied buildings)
Number of office buildings and net rentable area (in tsubo) for offices of small & medium andlarge buildings

Target data

Large buildings: Gross floor area of 5,000 tsubo or more
Small & medium buildings: Gross floor area between 300 and 5,000 tsubo
Mostly based on publicly available information such as newspaper articles, with some field

Survey method

surveys and interviews with business operators* The data of reconstructed or demolished buildings have been collected and reflected to theextent possible. Therefore, the overall stock volume and stock volume for a certain building age
may decrease from the previous year’s survey.
* The sum figures may not match due to rounding.
* The figures contained in the survey were aggregated at the time of the survey. Since informationis added and updated on a daily basis, any differences from figures released in the previous year
are not necessarily due to new construction or demolition.

Remarks* The office stock for 2023 includes buildings whose scheduled completion date was known in
December 2022.
* 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.
* In this report, buildings completed in and before 1981, when the Revised Seismic Design Methodof 1981 was enacted, are aggregated as “old seismic standard” buildings.

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Office Stock Pyramid 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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