Xymax Real Estate Institute

RESEARCH REPORT

Office Space per Person 2017
The office space per person was 3.81 tsubo.

October 18, 2017

Xymax Real Estate Institute surveys office building tenants on a regular basis to understand how
companies are using the office. The office space per person of companies leasing typical office buildings(hereinafter "office space per person") is surveyed and analyzed annually. This report summarizes thesurvey results in 2017.

Survey Results

Office space per person of Tokyo 23 Wards in 2017 was 3.81 tsubo for all the tenants.

It was 3.94 tsubo for new tenants, exceeding 3.81 tsubo for existing tenants.
(1 tsubo = approx. 3.3 sqm)

1. Office Space per Person
We collected the data of tenant's office space size and the number of workers as of April 2017 andcalculated the office space per person. The median of the data was 3.81 tsubo.
Figure 1 shows the office space per person by year. The size continued to decrease after 2011 and hit therecord low of 3.80 tsubo in 2016. The size almost remained the same in 2017 with only a slight increase to3.81 tsubo.
Figure 1: Office Space per Person in Tokyo 23 Wards 2008-2017

Office Space per Person 2017
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax Real
Estate Institute Corporation.
Copyright © 2018 Xymax Corporation. All rights reserved.

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2. Commentary
Figure 2 compares the office space per person of the tenants who signed a new lease and that of thetenants who were already there. Here, the new tenants mean those who signed the lease in the past year;
such tenants accounted for approximately 10% of all the tenants.
Figure 2: Office Space per Person of New Tenants and Existing Tenants 2008-2017

The office space per person of new tenants contracted to 3.66 tsubo in 2009 after companies relocated tosmaller offices following the economic slowdown caused by the financial crisis of 2008. In contrast, theoffice space per person of existing tenants grew to the 4 tsubo level in 2010 as companies cut jobs. Thespace per person gap between the new tenants and the existing tenants grew larger.
In 2013, the office space per person of new tenants started to expand. It expanded to a spacious size of
4.25 tsubo in 2014. Such expansion was possible because new office buildings were completed, and theeconomy recovered and companies chose to have a larger office space for business expansion in the near
future and for the expected increase in headcount.
Companies started to take more cost-conscious approach in 2015 due to the low vacancy rate, thedecrease in vacant space and the high market rent, making the office space per person of the new tenants
slightly smaller than that of the existing tenants.
Then in 2017, the office space per person of the new tenants exceeded that of the existing tenants. Somecompanies decided to have desk areas large enough to accommodate future employees. Other
companies decided to use a large space for common facilities such as refresh space and open meeting
space when they relocated to other building. These moves have contributed to the expansion of the officespace per person.

Office Space per Person 2017
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax Real
Estate Institute Corporation.
Copyright © 2018 Xymax Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute

Figure 3 shows the year-on-year headcount change of respondent companies where two-year consecutive
data were available.
Figure 3: Year-on-Year Change in Number of Office Workers 2016-2017

This year repeated the result in 2016. More companies increased the number of employees thandecreased it. Another highlight was that many companies increased the number of employees by morethan 50%. This job expansion is expected to continue. According to the report, Metropolitan Areas Office
Demand Survey 2017 – Demand Trends*, released by Xymax Real Estate Institute, more than 30% of thecompanies said they will hire more.

* Metropolitan Areas Office Demand Survey 2017 — Demand Trends
https://www.xymax.co.jp/english/research/images/pdf/20170802_2.pdf

Office Space per Person 2017
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax Real
Estate Institute Corporation.
Copyright © 2018 Xymax Corporation. All rights reserved.

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RESEARCH REPORT｜Xymax Real Estate Institute
Survey Overview
Period2008 – 2017 (surveyed every year)

TargetRespondents

Office tenants occupying a space in office building in Tokyo 23 Wards.

Effective
Responses

Calculation
Method7,385 tenants (total of the entire period)
397 in 2008
987 in 2013

790 in 2009
872 in 2014

852 in 2010
637 in 2015

894 in 2011
524 in 2016

909 in 2012
523 in 2017

The median of the data calculated by dividing the tenant's office space size by the numberof office workers.

•The size of the office space, herein, is based on the size specified under the leaseagreement.
Other than the desk area, it includes the entrance area (reception desk), meetingrooms, refresh area, document storage, other storage and corridors within theexclusive-use area, etc.

AdditionalInformation•

The number of office workers refers to the "number of users" given by the tenants.

For questions on this report, please contact us.
Xymax Real Estate Institute
PHONE: +81 3 3596 1477 | FAX: +81 3 3596 1478 | Email: info-rei@xymax.co.jp

Office Space per Person 2017
All the contents are as of the date of this report. Xymax Corporation does not guarantee the accuracy or completeness of the information herein.
Copying, quoting, forwarding, distributing, reprinting or any other use of this report is not allowed without prior permission from Xymax Real
Estate Institute Corporation.
Copyright © 2018 Xymax Corporation. All rights reserved.

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