Survey of Large Office Building Supply
in the 23 wards of Tokyo '08

April 11, 2008

We, Mori Trust Co., Ltd. (Head Office: Minato-ku, Tokyo), have since 1986 undertaken continuous field surveys and interviews
concerning the implementation of plans for large-scale office building projects (total floor area: 10,000 square meters) within the23 wards of Tokyo. Results of the most recent surveys and analysis are presented below. In the calculation of total office floorarea, where the survey deals with multi-purpose buildings—buildings coupled with stores, living quarters or residences, hotels,[Survey Date: December 2007]
etc.—only the floor area purely for office use is taken into consideration.

Office supply approaches a turning point-Supply hits a low level in 2008, and central Tokyo’s share of supply falls as wellMain Results of This Survey

1. Changes in Supply Volume:
Annual supply projected to average 710,000 square meters over the next four years, reflecting a
rapid fall to 60% of the level of supply over the past four years
In 2008, supply is projected to total 670,000 square meters, roughly one-half the 2007 level of
1,190,000 square meters. In addition, supply is projected to average only 710,000 square meters/year
over the period 2008–2011 — a level less than 60% that of actual supply (1.2 million squaremeters/year) over the period 2004–2007. The year 2008 marks a turning point away from the trend
toward high supply that had begun around 2002, and supply appears likely to remain at very low
levels over the next few years.
As for the average office area of each building, the upsizing trend has reversed – from 43,000
square meters (2004–2007) to a projected 36,000 square meters (2008–2011).
1.0
0.8
0.6
0.4
0.2
0.0

2. Trends in Supply Location:
Share of supply of the three central wards of Tokyo to fall to the 50% range over the coming fouryears, with a rapid decrease in the number of large-scale development projects in central Tokyo.
A look at supply locations over the period 2008–2011 shows that the share of supply accounted
for by locations in the three central wards of Tokyo will fall substantially, from 75% of supply (over theperiod 2004–2007) to 57%. This phenomenon results from the fact that the recent very large-scale
redevelopment projects on former Japan National Railway or public land, such as those in Shiodome,Roppongi, and Konan, were mostly completed by 2007 and the volume of such development onunderutilized and unused land such as these sites in central Tokyo is set to decrease dramatically.
A look at supply by business district shows that while the Otemachi-Marunouchi-Yurakucho area
remains the center of supply, districts with the next-highest levels of supply are those such as
Nishi-Shinjuku, Osaki/Gotanda, and Toyosu, outside the three central wards.

3. Trends by Development Site:
Rebuilding projects’ share of supply in the three central wards of Tokyo to surpass 80% over the years
2008–2011
A look at supply trends by development site over the period 2008–2011 shows that rebuilding
sites account for more than 80% of development in the three central wards of Tokyo, a clear
indication that the leveling off of development of underutilized and unused land in these wards has
resulted in a shift to a supply structure made up primarily of rebuilding. At the same time, outside thethree central wards of Tokyo 80% of supply consists of development of underutilized and unused
land, implying that the booming office market has led to the steady advancement of redevelopment
projects and of putting unused land to more efficient use.

For further information, please contact:Yuji Iwata
Research & Planning
Building Leasing Department1
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
Tel: +81-3-5511-2434 / Fax: +81-3-5511-2409
E-Mail: iwata-y@mori-trust.co.jp

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Future Market Outlook
In 2008, the office-supply trend in Tokyo is shifting in orientation from a trend toward
large-scale supply centralized in central Tokyo to one toward low levels of supply
dispersed over numerous locations. Behind this shift is the drying up of sites forlarge-scale development in central Tokyo and the resulting supply structure focused onrebuilding. With the recent successive completion of large-scale development projects,
the renewal of the central-city functions—which had been progressing rapidly—islikely to slow down somewhat over the coming several years.
At the same time, it would be difficult to characterize central Tokyo, home to aconcentration of core global business facilities, as having an adequate supply ofhigh-spec, large-scale buildings able to satisfy the needs of these global firms. Officebuildings completed since 2000 that can be viewed as having suitably highspecifications still account for only just over 10% of total office stock in the three
central wards of Tokyo. As such, the renewal of the central-city functions has only justbegun. As competition between cities intensifies on a global basis, large-scale
redevelopment in the central city is indispensable to further improving theinternational competitive strengths of the Tokyo brand in the future. These times thus
inarguably require the adoption of innovative measures in support of such efforts.
To this end, the swift implementation of an urban revitalization project decided on inJune of last year, named “The promotion of urban revitalization for the enhancement ofinternational financial base functions”, is eagerly anticipated. However, in order toimprove the international competitive strengths of the Tokyo market we must strongly
promote the development of an urban environment in which global firms, including
financial institutions from Japan and overseas, can operate with comfort and peace ofmind. Accordingly, many are eagerly awaiting the timely adoption of dynamicinnovations, such as new means of urban development that go beyond the bounds ofexisting frameworks.

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Figure 1: Trends in supply volume of large-scale office buildings in the 23 wards of Tokyo

Key
Completed supply
Incomplete supply under construction
Incomplete supply not yet under construction
Supply quantity

41

47(Buildings)
50

49
43

40 37

33

29

29

2724（10,000 ㎡）

17122022

23
14

Supply volume30
237
2004 - 2007 average supply:
1,200,000 ㎡ / year100

2008 - 2011 average supply:
710,000 ㎡ / year

183
162

150
100 108 104

10050

0
Supply volume (own buildings)

23 25

20221
1986 - 2007average supply:
1,060,000 ㎡ / year

27

16

250

200

40

36

33

Supply quantity

46

119

114 118
92

83
56

89
74

82

72

67

81

80

55

55
36

'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

61

60
40
20

119

118

118
99

32
15

8

1712

27

38
25

11

13

23

2211

1938

32

21
9179131106710

Figure 2: Trends in average total office floor area per building (four-year intervals)

26,000 ㎡ / building（1988-1991）

30,000 ㎡ / building(1992-1995）

38,000 ㎡ / building(1996-1999）

46,000 ㎡ / building（2000-2003）

43,000 ㎡ / building（2004-2007）

36,000 ㎡ / building（2008-2011）

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Figure 3: Large-scale office supply volume in the 23 wards of Tokyo and individual key business districts(2008 - 2011)〔23 wards〕〔Business districts〕

Other 16 wards

Oshiage

10%

Koto ward
12%
Shinagawaward

Three centralwards57％

Chiyoda ward
34%

9%

Shibuyaward
2%

10%

16%

Shinjuku ward
Minato ward

Akihabara
Iidabashi・
KorakuNishi-Shinjuku

Bancho・
Hirakawacho

7%

Otemachi・Marunouchi・Yurakucho
650,000㎡

Kasumigaseki･
Nagatacho

Akasaka

Chuo ward
Aoyama950,000 ㎡

Chuo ward

190,000 ㎡

Minato ward

460,000 ㎡

Shinjuku ward

280,000 ㎡

Shibuya ward

50,000 ㎡

Shinagawa ward

260,000 ㎡

Koto ward

350,000 ㎡

Other 16 wards

280,000 ㎡

Suitengumae
Nihonbashi・
Muromachi

GinzaToyocho

Shinbashi

Roppongi

Supply volume

Chiyoda ward

Jinbocho・Ogawamachi

ToyosuHarumiShibuyaIkejiri-Ohashi

Hamamatsucho

Hiroo

Shinkiba
Approx. supply volumeTamachi

Ebisu：400,000 ㎡ 〜
Shinagawa(Konan)Meguro：200,000 ㎡〜 400,000 ㎡

Rinkai

Osaki
Gotanda：100,000 ㎡〜 200,000 ㎡： 10,000 ㎡〜 100,000 ㎡

Higashi-Shinagawa

Figure 4: Trends in the top 10 districts in terms of large-scale office supply volume (2008 - 2011)(10,000 ㎡)

50

Key

2008

Supply volume40

2009
2010

30

2011

20
100

OtemachiMarunouchi
Yurakucho

Nihonbashi
Muromachi

AkasakaBanchoHirakawachoKonan

Iidabashi
KorakuNishi-Shinjuku

Osaki
GotandaToyosuRinkai4/7

Figure 5: Large-scale office supply volume in the 23 wards of Tokyo and individual key business districts(2004 - 2007)〔23 wards〕〔Business districts〕
Ikebukuro

Three centralwards
75％

Other 16 wards
4%
Koto ward

Asakusa

Shinagawaward
Shibuyaward2%
Shinjuku
ward
0.2%

10%
9%

Chiyoda ward
34%

Minato ward
33%

Akihabara
Yotsuya 3-chome

Bancho・Kojimachi

8%

Supply volume

Chiyoda ward

Otemachi・Marunouchi
・Yurakucho
990,000㎡

Chuo ward
AkasakaHarajuku

1,650,000 ㎡

Chuo ward

380,000 ㎡

Minato ward

1,570,000 ㎡

Shinjuku ward

10,000 ㎡

Shibuya ward

80,000 ㎡

Shinagawa ward

440,000 ㎡

Koto ward

500,000 ㎡

Other 16 wards

190,000 ㎡

Aoyama

Kinshicho

UchiIidabashi Jinbocho・ kanda
・kudan Ogawamachi

Roppongi

Kasumigaseki･
Uchisaiwaicho
Toranomon

670,000㎡

Ginza

Shirogane

Toyocho・Monzen-nakacho

Shiodome

Hamamatsucho

Shibuya

HamachoNihonbashi・Kyobashi
・Muromachi

HarumiToyosuShinkiba

TamachiEbisu

Approx. supply volume：400,000 ㎡ 〜
Shinagawa(Konan)750,000㎡

Osaki
GotandaHigashi-Shinagawa

Rinkai：200,000 ㎡〜 400,000 ㎡：100,000 ㎡〜 200,000 ㎡： 10,000 ㎡〜 100,000 ㎡

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Figure 6: Percentages of large-scale office supply volume by site type (2008 - 2011)〔Three central wards〕
Former Japan
National Railway site:
80,000 ㎡ (5%)

〔Other districts〕

Others:120,000 ㎡(7%)

Redevelopment project:
60,000 ㎡(4%)

Rebuilding:
240,000 ㎡(20%)

Underutilized or unused site:
260,000 ㎡ (16%)
Others:620,000 ㎡(50%)

Rebuilding:
1,340,000 ㎡(84%)

Redevelopment
project:
370,000 ㎡(30%)

Underutilized or unused site:
990,000 ㎡ (80%)

Figure 7: Supply volume by site type of the top 10 districts in terms of large-scale office supply volume(10,000 ㎡)

70

KeyRebuilding

Supply volume60

Redevelopment project
Former Japan
National Railway site

50

Other underutilizedor unused site

40
30
20
100

OtemachiMarunouchi
Yurakucho

Nihonbashi
Muromachi

AkasakaBanchoHirakawacho

Konan

Iidabashi
KorakuNishi-Shinjuku

Osaki
GotandaToyosuRinkai[Definition of terms]
Rebuilding:(Developments taking place on) land resulting from the demolition of buildings previously used as offices, hotels, residences, etc.
Underutilized and unused site:(Developments taking place on) land not previously used effectively, including land with intermixed parking lots, dilapidated
buildings, and a number of empty lots, concentrated residential-use land, former factories, former railway land, etc.
Redevelopment project:
A redevelopment project carried out by a redevelopment association or Tokyo Metropolitan Government.

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Figure 8: Supply trends in three central wards of Tokyo and other districts〔Large-scale office supply〕(10,000 ㎡)

400

Key

3,600,000㎡

300

148 （41％）200

1,600,000㎡
26 （16％）

1,220,000㎡

1,230,000㎡

112

99

212 （59％）

100
0Rebuilding
Underutilized and unused site134

2004-2007（84％）

2008-2011

（92％）

（80％）

24 （20％）10 （8％）
2004-2007
2008-2011

Three central wards

Other districts〔Average office floor area per building〕

54,000㎡/building

45,000㎡/building

37,000㎡/building（2000-2003)（2004-2007)（2008-2011)

Three central wards

38,000㎡/building

33,000㎡/building

35,000㎡/building（2000-2003)（2004-2007)（2008-2011)

Other districts

Figure 9: Shares of office stock by year of completion of office construction*
2000-2005
4%

2000-2005
11%

1979 or earlier

1990s
23%

1979 or earlier
45%

1990s

31%

45%

1980s

1980s

21%

20%

Three central wards

Other districts* The data above was prepared by Mori Trust Co., Ltd. based on office floor area (including bank floor area) figures included inTokyo no Tochi 2006 (“Tokyo Land 2006”), published by the Tokyo Metropolitan Government.
The above graphs assume that the increase in supply volume in each year equals the office floor area of buildings completed inthat year and depict shares by decade calculated using total office stock as of January 1, 2006 as the denominator.

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