Survey of Large Office Building Supply
in the 23 wards of Tokyo '06-As of : December, 2005-䇭䇭Since 1986, Mori Trust Co., Ltd. (head office: Minato-ku, Tokyo) has conducted a series of field surveys and questionnaires in the23 wards of Tokyo on large office buildings with a total floor area of 10,000ট or more, covering topics such as the progress ofbuilding project plans. The following are the findings of the latest survey.
Note: In this survey, the supply of office buildings is measured in terms of the total floor area used exclusively for offices.
As such, the floor areas used for retail stores, residences, hotels and other non-office purposes are excluded.

From provision of massive quantity to a steady supply
䌾Renewal of urban business center functions accelerates as rebuilding replaces redevelopment of underutilized
or unused large-scale sites as the primary mover䌾

Key points in the results of this survey

㪈㪅㩷Trends in supply volumes:


Supply is in a decreasing trend over the mid-term, as average annual new supply falls from 1.24
million square meters (in 2000 - 2004) to 950,000 square meters (in 2005 - 2009).
Although the volume of supply in 2006 has reached 1.64 million square meters — the third highest
figure on record — supply in 2007 appears set to return to 1.06 million square meters, a level in line withpast averages, with figures for 2008 and 2009 likely to fall below 1 million square meters. As it returns toa level of average annual supply in the range of 1 million square meters, the market is shifting from aperiod of massive quantity provision — centered on redevelopment of underutilized or unusedlarge-scale sites in 2000-2004 — to a period of steady supply.

㪉㪅㩷Trends in areas in which supply is located:
The trend toward tenants returning to central Tokyo is likely to continue for the time being, withconcentration in the Otemachi, Marunouchi, and Yurakucho areas in Chiyoda Ward becoming evenmore pronounced.
More than 70% of supply in the period 2005 - 2009 will be centered in three of the central wards ofTokyo (i.e., Chiyoda, Minato, and Chuo wards), with the trend toward tenants returning to central
Tokyo appearing likely to continue for the time being. Of these three wards, Chiyoda and Minato wards
in particular stand out, with each accounting for more than 30% of supply. In Chiyoda Ward,concentration in the Otemachi, Marunouchi, and Yurakucho areas is becoming even more pronounced,
while in Minato Ward supply stands out in business districts that have seen higher concentrations ofoffice space recently, such as Akasaka, Shiodome, and Roppongi.

㪊㪅㩷Movement toward supply via rebuilding:
Rebuilding replaces redevelopment of underutilized or unused large-scale sites as the primary mover.
Although during the period 2000 - 2004 supply of large-scale office space through rebuilding accounted
for no more than 20% of the total, in the period 2005 - 2009 this percentage will increase to 51% —exceeding the supply from redevelopment of underutilized or unused sites, which had been the primary
mover in the market. Furthermore, the percentage of supply from rebuilding in Chiyoda and Minatowards, the core areas of new supply for the future, will reach 60 - 70%. These data lend support to themarket trend of office tenants returning to central Tokyo mainly through rebuilding.

For further information, please contact:
Research & Planning Section‫ޓޓޓޓ‬Miyuki Ban‫ޓޓޓޓޓޓޓޓ‬Sales Department
Mori Trust Co., Ltd.‫ޓ‬http://www.mori-trust.co.jp
Toranomon 2-chome Tower, 3-17 Toranomon 2-Chome, Minato-ku, Tokyo 105-0001 JAPAN
Tel: +81-3-5511-2357 / Fax: +81-3-5511-2409
E-Mail: ban-m@mori-trust.co.jp

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Apr. 4, 2006

Future market prospects
The shift toward a supply structure focused on rebuilding that has begun to be actualized
recently is a sign that in the process of its maturing as an international business centerTokyo is on the verge of entering a period of renewal of office stock that is no longer suited
to the times. In fact, changes in the market environment such as increased risk of alarge-scale earthquake and the appearance of asbestos-related issues have thrown intorelief the presence of inadequate stock that cannot be overlooked, leading to growing
demand for renewal of building functions through means such as rebuilding.
In Tokyo, the need for renewal is swiftly growing for a wide range of structures —including not just office buildings but also structures such as roads built for the 1964
Tokyo Olympics, public housing, and lifeline facilities — that in about ten years will markthe 50th year since their construction. A wide range of the social stock that makes up theurban space was built giving top priority to meeting the quantitative needs of the growthin population and infrastructure that accompanied Japan’s period of high economic
growth in the postwar years. It is hoped that this renewal will provide the opportunity for
future progress in quantitative and qualitative improvements in the urban stock, as well as
restructuring of the distribution of this stock, using as a yardstick for value the creation ofample urban amenities, so essential to a mature international urban center.

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Apr. 4, 2006

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

Key

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

46
4147

(Buildings)
50

49
43

40 37

29

27
23

22
17
14

1230
24

20

20

16

1282502000 - 2004 average supply:
1,240,000 Ὦ / year

Supply volume200

1986 - 2005 average supply:
1,020,000 Ὦ / year

Supply quantity2924（10,000 Ὦ）

40

3633

33

100

221

183

2005 - 2009 average supply:
950,000 Ὦ / year

164

1995 - 1999 average supply:
840,000 Ὦ / year

150

100

100

108 104

119

114 118

106

92

89

83

82

7274
56

118

118
99

64

55

59

50
3630
7

Supply volume (own buildings)

0'86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

61

60
40
20

738

32
15

17812

27
1138

32

25

23
13

22
1119

21

17
90913
30

Figure 1 - 2: Trends in average total office floor area per building (five-year intervals)

51,000 ≂ / building
27,000 Ὦ / building

29,000 Ὦ / building（1986-1989）（ 1990-1994）

36,000 Ὦ / building（1995-1999）

43,000 Ὦ㩷/ building（2000-2004）（2005-2009）

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Apr. 4, 2006

Figure 1 - 3: Large-scale office supply volume in the 23 wards of Tokyo and individual key business districts(2005 - 2009)〔23 wards〕

Three centralwards
74％

Koto ward〔Business districts〕
Higashi-ikebukuro

Other 16 wards
5%

Shinagawa ward
Shibuya ward
2%
Shinjuku ward

Koraku7%
7%
5%

Chiyoda ward
35%

Nishi-shinjuku

Minato ward
33%

Hirakawacho

Akasaka

Jingumae
AoyamaChuo ward

Shinsen

Toranomon

Otemachi・Marunouchi
・Yurakucho

Shirokane-takanawa

Minato ward

1,590,000 Ὦ

Shinjuku ward

250,000 Ὦ

Shibuya ward

80,000 Ὦ

Shinagawa ward

320,000 Ὦ：200,000 Ὦ〜 400,000 Ὦ

Koto ward

350,000 Ὦ：100,000 Ὦ〜 200,000 Ὦ

Other 16 wards

220,000 Ὦ： 10,000 Ὦ〜 100,000 Ὦ

Ningyocho
Yaesu・
Nihonbashi・Muromachi
Kiba

Ginza
Shiodome

Hamamatsucho

Shibuya

280,000 Ὦ

Kinshicho

Kasumigaseki･
Uchisaiwaicho

Roppongi

Supply volume1,660,000 Ὦ

AkihabaraUchikanda

1,090,000Ὦ

Chuo ward
6%

Chiyoda ward

Jinbocho・
Ogawamachi

Iidabashi・
Kudan

Tsukiji
Tsukishima・HarumiToyosuShinkiba

Shiba・Mita
Shibaura

Approx. supply volume：400,000 Ὦ 〜

RinkaiShinagawa(Konan)
Osaki
GotandaFigure 1 - 4: Trends in the top 10 districts in terms of large-scale office supply volume (2005 - 2009)(10,000 Ὦ)

50

Key

2005
2006

Supply volume40

2007
2008
2009

30
20
100
OtemachiMarunouchi
Yurakucho

Shiodome

Akasaka

Roppongi

Shinagawa(Konan)

Nishishinjuku

Akihabara

Osaki
GotandaToyosuRinkai

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Apr. 4, 2006

Figure 1 - 5: Large-scale office supply volume in the 23 wards of Tokyo and individual key business districts＜1995 - 1999＞〔23 wards〕

Three centralwards
35％〔Business districts〕
Honkomagome
・HakusanGokokuji

Chiyoda ward
8%
Chuo ward
5%

Kuramae

Other 16 wards
19%

Nakano-sakaue

Minato ward

Shinagawa ward 11% 9%
13% Shibuya Shinjuku ward
ward

Iidabashi
・KudanShinjukugyoen

22%

Koto ward
13%

Kinshicho

Kagurazaka・Koraku

Jinbocho・
Ogawamachi
Kanda

Nishi-shinjuku
Yoyogi
490,000ὮHamacho

OtemachiShinanomachi

Hirakawacho
・BanchoSasazuka
Sendagaya
・Jingumae

Akasaka
AoyamaNihonbashi
・Kyobashi

Kasumigaseki・
Uchisaiwaicho
Toranomon

Supply volume

Chiyoda ward

320,000 Ὦ

chuo ward

210,000 ≂Minato ward

920,000 ɜ

Shinjuku ward

360,000 Ὦ

Shibuya ward

470,000 Ὦ

Shinagawa ward

560,000 Ὦ

Koto ward
Other 16 wards

Shiomi

Kachidoki・Tsukishima

ShibuyaIkejiriohashi

ToyochoTsukiji

Ginza

Shinbashi

Kayabacho
・Shinkawa

Utagawacho
・Sakuragaokacho

Shiba

Sangenjaya

Shibaurakaigan

Ebisu
・Hiro-oApprox. supply volume：400,000 Ὦ〜

Meguro：200,000 Ὦ〜400,000 Ὦ

530,000 Ὦ：100,000 Ὦ〜200,000 Ὦ

810,000 Ὦ： 10,000 Ὦ〜100,000 Ὦ

Rinkai
540,000Ὦ

Shinagawa(Konan)Osaki
TennozuOi＜2000 - 2004＞〔23 wards〕

Three centralwards
75％

Other 16 wards
6%
Koto ward
3%〔Business districts〕

Takadanobaba
Asakusa

Shinagawaward
Shibuya ward
Shinjuku ward
4%

Kagurazaka
・Koraku

6%
6%

Chiyoda ward
25%

Iidabashi
・Kudan Jinbocho・
Ogawamachi

Yotsuyasanchome

Minato ward
39%

Chuo ward
11%

Nishishinjuku
・Yoyogi

Kojimachi
・BanchoAoyamaSupply volume
Shibuya

Chiyoda ward

1,560,000 Ὦ

Chuo wards

670,000 Ὦ

Minato ward

2,440,000 Ὦ

Shinjuku ward

230,000 Ὦ

Shibuya ward

340,000 Ὦ

GinzaToyocho・Kiba
Monzen-nakachotsukiji

Shiodome
730,000Ὦ
HarumiToyosuShiba・
Mita

Nakameguro

Nihonbashi・Kyobashi
・HonchoKayabacho

790,000Ὦ

Toranomon
Roppongi
510,000 Ὦ
Hamamatsucho・
Shibakoen

Dogenzaka
・Sakuragaokacho

Kanda

Otemachi・Marunouci
Yurakucho

Nagatacho
Kasumigaseki
Akasaka

Sendagaya
・Jingumae

Kinshicho

Akihabara

Shibaura・
KaiganEbisu

Approx. supply volume：400,000 Ὦ〜
MeguroShinagawa ward

400,000 Ὦ

Koto ward

210,000 Ὦ

Other 16 wards

340,000 Ὦ：200,000 Ὦ〜400,000ᴾὮ

Shinagawa(Konan)
Gotanda600,000 ὮRinkai：100,000 Ὦ〜200,000 Ὦ： 10,000 Ὦ〜100,000 Ὦ

Oi

Higashishinagawa

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Apr. 4, 2006

Figure 1 - 6: Percentages of large-scale office supply volume by site type〔2000-2004〕〔2005-2009〕

Rebuilding:
1,240,000 Ὦ(20%)

Other:
3,360,000 Ὦ(54%)

Underutilized or unused site:
4,950,000 Ὦ (80%)

Former Japan
National Railway sites:
1,590,000 Ὦ (26%)

Underutilized or unused sites:
2,330,000 Ὦ (49%)

Other:
2,040,000 Ὦ(43%)

Rebuilding:
2,420,000 Ὦ(51%)

Former Japan National Railway sites:
290,000 Ὦ (6%)

Rebuilding: Refers to land on which structures such as office buildings, hotels, and residential properties that had used the site inits entirety have been demolished in the development or sale stage.
Underutilized or unused sites: Refers to sites such as those with scattered patches of unused land including parking facilities andold buildings, sites with concentrations of residential properties, factory sites, rail yards, and idle land.

Figure 1 - 7: Percentages of large-scale office supply volume by site type
/ by ward (23 wards of Tokyo) (2005 - 2009)〔Minato ward〕〔Chiyoda ward〕

Underutilized or unused sites:
500,000 Ὦ (59%)

Underutilized or unused sites:
620,000 Ὦ (39%)

Other:
350,000 Ὦ(21%)
Former Japan National
Railway sites:
150,000 Ὦ (9%)

Other:
480,000 Ὦ(30%)

Rebuilding:
1,160,000 Ὦ(70%)

〔Other wards〕

Underutilized or unused sites:
1,210,000 Ὦ (80%)
Rebuilding:
290,000 Ὦ(20%)
Rebuilding:
970,000 Ὦ(61%)

Other:
1,210,000 Ὦ(80%)

Former Japan National
Railway sites:
140,000 Ὦᴾ(9%)

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