Survey of Large Office Building Supply
in the 23 wards of Tokyo '11
June 1, 2011

Since 1986, Mori Trust Co., Ltd. (Head Office: Minato-ku, Tokyo) has surveyed trends in the supply of large-scale office buildings
containing total office space of 10, 000 square meters or more within the 23 wards of Tokyo, based on various publishedmaterials, field surveys, and interviews. The results of the most recent surveys are presented below.In the calculation of total
office floor area, where the survey deals with multi-purpose buildings—buildings coupled with stores, living quarters or
residences, hotels, etc.—only the floor area purely for office use is taken into consideration.
[Survey Date: December 2010]

Hub of supply area to swing back to central Tokyo from surrounding areas
Main Results of This Survey

1. Changes in supply volumes
Despite a temporary increase, supply volumes are projected to resume their slowing changes in 2013.
Supply volumes in 2010 were 830,000 square meters, below the average for the past two decades(1.08 million square meters/year) for the third consecutive year, starting in 2008. While supply foreach of 2011 and 2012 (with projections at 1.37 million and 1.62 million square meters, respectively)
is projected to surpass the average of the past years, the trend is projected to return to a slowingchange in 2013 and 2014. In particular, supply volumes in areas other than the three central wards ofTokyo are expected to show marked declines starting in 2013, due in part to the impact of recent
sluggishness in the rental office market.
2. Trends in supply areas
Starting in 2013, the supply is projected to shift from a trend toward widening distribution across theareas to concentration in central Tokyo.
In 2011-2012, supply volumes in areas outside the three central wards of Tokyo will surpass supply
in the three central wards. By ward, supply volumes will be highest in Shinjuku and Koto wards,
surpassed only by Chiyoda Ward. In addition, when looking at supply by area, areas outside the three
central wards, such as the Osaki/Gotanda, Nishi-Shinjuku, and Nakano areas, will supply a large
number of sites. In contrast, the supply volume for the three central wards in 2013-2014 is projectedto account for more than 80% of the total figure for the 23 wards of Tokyo. By ward, the three centralwards are also expected to hold the top positions. Also, when looking at supply volumes by area,
projections indicate that statistical subdivisions of the Tokyo metropolitan area with particularly highoffice concentrations in parts of the three central wards—for example, Otemachi/ Marunouchi/Yurakucho, Yaesu/Nihonbashi/Kyobashi, or Toranomon areas—will retain the leading positions.
3. Supply trends by land for development
In the three central wards of Tokyo, a trend wherein supply revolves around rebuilding is projected tocontinue.
In the three central wards, in 2011-2014 rebuilding supply is projected to account for approximately
80% of all new office space, with supply concentrating in areas that have traditionally featured highconcentrations of large office buildings (the area around Tokyo Station, for example). Other thanrebuilding supply, redevelopment supply is projected to increase, while office supply from land
currently owned by the national government or other publicly-owned land, capable of being
developed rapidly, will be nonexistent. On the other hand, some 80% of office supply in 2011-2014
outside the three central wards will continue to come from the development of low-use or unusedland.

For further information, please contact:
Research & Planning
Yuko Toyama
Building Leasing Department
Mori Trust Co., Ltd. http://www.mori-trust.co.jp
Toranomon 2-chome Tower, 3-17 Toranomon 2-Chome, Minato-ku, Tokyo 105-0001 JAPANE-Mail: toyama-y@mori-trust.co.jp

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Conclusions
The Great East Japan Earthquake has also profoundly affected corporate office-building
selection criteria. The post-earthquake rental office market has seen a growing
preference for office buildings offering superior safety and reliability. In response,
future office building plans are even more likely to incorporate further strengthened
measures to counter disaster risks, including advanced, high-level seismic control
structures and base-isolated structures; augmentation of emergency power supplies;
and enhanced emergency supplies for employees facing difficulty returning home
after a disaster. This in turn is expected to create a wider performance gulf between
new and old buildings, eventually prompting the rebuilding of older buildings
associated with inferior disaster performance.
A look at office stocks in the 23 wards of Tokyo shows that 30% of this space consists ofbuildings completed in the 1970s or before, before the enactment of the newearthquake standards. There is a clear and pressing need to renew this older officestock. The recent earthquake also revealed the weakness of the infrastructure
supporting key urban functions, highlighting a need to strengthen a broad range ofthe social infrastructure. To lure back the personnel and investment from overseas
expected to prove essential in restoring and developing the Japanese economy, publicand private sectors will need to work jointly to advance urban reconstruction, based ona new grand design unfettered by preconceived notions. This will be a prerequisite forbuilding safe, disaster-proof cities.

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Figure 1:Office supply trends at large office building in the 23 wards of Tokyo
Office supply in completed buildings
Office supply in buildings under construction
Office supply in buildings to be constructed
Supply quantity(Buildings)
50

49

46

36

33

37

29
29

22
17(10,000㎡)
250

2728

26

19212030

2927

23

40

35

20

16

14

10

Supply quantity

4347

80

2212001991-2010 average supply:
1,080,000㎡/year

183

2011-2014 average supply:
1,110,000㎡/year

Supply volume

162

162

150

137
119

114 118

118

104
100

99

92

89
74

50

0119

118

86

82

72

83
68

64

75

36'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14

Figure 2:Office supply in the three central wards of Tokyo and in other areas[Three central wards of Tokyo][Outside the three central wards]
1991-2010 average supply:
470,000㎡/year

1991-2010 average supply:
610,000㎡/year

100

100

88

84
74
64

53

Markeddecline

5950

50

00164
'11 '12 '13 '14'11 '12 '13 '14

Figure 3:Office supply volumes and shares by building size
'91－'95

40%(510,000㎡/year)

60%(710,000㎡/year)'96－'00

51%(410,000㎡/year)49%(390,000㎡/year)'01－'0556%(710,000㎡/year)

44%(550,000㎡/year)'06－'1061%(560,000㎡/year)49%(460,000㎡/year)'11－'140%73%(810,000㎡/year)

20%

40%

Office buildings of 50,000㎡ or larger

27%(300,000㎡/year)

60%

80%

100%

Office buildings of less than 50,000㎡3/7

Figure 4:Large-scale office supply by ward
[ a. 2011-2014]
Outside thethree central ward
40%

Other16 wards
11%
Koto ward
8%

Shinagawaward
7%
Shibuyaward
3%

Shinjuku
ward
11%

Minatoward
14%

Three central
wards of Tokyo
Chiyoda ward
35%

Outside the1,780,000㎡
three central ward

Chuoward
11%

Three central
wards of Tokyo
60%[ b. 2011-2012]

Chiyoda ward

1,540,000㎡

Chuo ward

490,000㎡

Minato ward

610,000㎡

Shinjuku ward

470,000㎡

Shibuya ward

160,000㎡

Shinagawa ward

300,000㎡

Koto ward

380,000㎡

Other 16 wards

470,000㎡[ c. 2013-2014]
Other
Outside the
Shinagawa 16 wards
three central ward
ward
6%
14%
2%
Shinjuku
ward
6%

Outside thethree central ward
53%
Other
16 wards
13%

Chiyoda ward
30%

Koto ward
13%

Minato ward
19%

Shinagawaward
9%
Shibuyaward
5%2,640,000㎡

Shinjuku
ward
13%

Chuo ward
6%
Three central
wards of Tokyo
47%

Chuo ward
22%

Minatoward
11%

Chiyoda ward
45%

Three central
wards of Tokyo
86%

Figure 5:Volume of office supply in large office buildings by area (top five areas)（10,000㎡）
60[ a. 2011-2012]

5040
30
2010Three central wards of Tokyo
Outside the three central ward

0Otemachi
Marunouchi
Yurakucho

Osaki
GotandaNishi-shinjuku

NakanoAkasaka
Roppongi[ b. 2013-2014]（10,000㎡）
6050
4030
20
10

Three central wards of Tokyo
Outside the three central ward

0Otemachi
Marunouchi
Yurakucho

Yaesu
Nihonbashi
Kyobashi

Toranomon Kandajinbocho
Kandaogawamachi

Iidabashi
Fujimi4/7

Figure 6: Large-scale office supply volume in the individual key business districts[2011-2012]

NakanoNishi-Shinjuku
Shinjuku

Chiyoda ward

Jinbocho
OgawamachiOtemachi
Marunouchi
Kojimachi
Yurakucho
Hirakawacho
Uchisaiwaicho
Kasumigaseki
Nagatacho
Akasaka
Roppongi

Yoyogi

Yaesu
Nihonbashi
Kyobashi

Chuo ward
Toyocho
Kiba

Toranomon

ToyosuShibuyaMinato ward

MeguroApprox.supply volume

Rinkai：400,000㎡～：200,000㎡～400,000㎡：100,000㎡～200,000㎡

Osaki
Gotanda： 50,000㎡～100,000㎡[2013-2014]

Okubo

Iidabashi Jinbocho
Fujimi
Ogawamachi
Muromachi
HonchoOtemachiMarunouchi
Yurakucho

Chiyoda ward

Yaesu
Nihonbashi
Kyobashi

Chuo ward

Akasaka
Roppongi

Ginza
Toranomon

Minato ward

Approx.supply volume：400,000㎡～：200,000㎡～400,000㎡：100,000㎡～200,000㎡： 50,000㎡～100,000㎡

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Figure 7:Volume of office supply and shares by type of land for development[ a. Three central wards of Tokyo]
Other low-use or unused land
140,000㎡/year(13%)

Low-user or unused land
150,000㎡/year(25%)

Other low-use or unused land
30,000㎡/year(5%)
Low-user or unused land
140,000㎡/year(22%)

Other low-use or unused land
80,000㎡/year(13%)

Public land
50,000㎡/year(9%)
Rebuilding
440,000㎡/year(38%)

Public land
430,000㎡/year(37%)
Redevelopment
140,000㎡/year(12%)

Redevelopment
20,000㎡/year(3%)

Redevelopment
11,000㎡/year(17%)
Rebuilding
440,000㎡/year(75%)

Rebuilding
520,000㎡/year(78%)

Low-user or unused land
710,000㎡/year(62%)

2003-2006

2007-20102011-2014[ b. Outside the three central wards]
Rebuilding
20,000㎡/year(5%)
Redevelopment
20,000㎡/year(6%)
Public land
30,000㎡/year(10%)

Other low-use or unused land
240,000㎡/year(79%)

Low-user or unused land
290,000㎡/year(95%)

2003-2006

Rebuilding
60,000㎡/year(21%)
Other low-use or unused land
190,000㎡/year
Redevelopment(63%)
40,000㎡/year(13%)

Low-user or unused land
370,000㎡/year(83%)

Other low-use or unused land
200,000㎡/year
Redevelopment(46%)
90,000㎡/year(19%)

Public land
10,000㎡/year(3%)

Low-user or unused land
240,000㎡/year(79%)

Rebuilding
80,000㎡/year(17%)

2007-2010

Public land
8,000㎡/year(18%)

2011-2014
Rebuilding
Low-user or unused land (Redevelopment)
Low-user or unused land (Public land)
Other low-use of unused land

[Terminology]
Rebuilding:Land after demolition, previously occupied by a building used as an office, hotel, residence, etc.
(or development thereof).
Unused or underutilized land:
Land not previously put to effective use, including land dotted with undeveloped plots like parking lots anddecrepit buildings, densely developed residential areas, former factory sites, railroad land, or unused land(or development thereof).

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Figure 8:Shares of office floor by decade of construction～'59
2%'00～'0819%'60～'69
11%'70～'79
17%'90～'9929%'80～'89
22%

Source: Prepared by Mori Trust Co., Ltd. Based on“Tokyo Land 2009” (Tokyo Metropolitan Government).

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