Since 1986, Mori Building Co., Ltd. (Minato-ku, Tokyo; President & CEO Shingo Tsuji) has regularly conducted market surveys of demand and supply trends for 10,000㎡-class or higher office buildings that were constructed in Tokyo's 23 wards since 1986 (hereinafter referred to as "large-scale office buildings"). Having just completed the tabulation of the results of our most recent survey, we are pleased to present you with this report.
Greater demand than predicted for Office Space led to a lower vacancy rate in 2014.
Supply volume for 2015 will exceed the historical average.
■ Supply Trends
＜Tokyo's 23 Wards＞
○ Supply volume in 2014 was 870,000㎡ (150% of the previous year's volume).
○ Supply volume in 2015 will be 1,100,000㎡ (126% of the previous year's volume).
＜Central 3 Wards＞
○ Supply volume in 2014 was 700,000㎡ (130% of the previous year's volume).
○ Supply volume in 2015 of 800,000㎡ (114% of the previous year's volume) will account for 73% of the supply volume of Tokyo's 23 Wards.
■ Demand Trends
＜Tokyo's 23 Wards＞
○ Absorption capacity (new demand) in 2014 was 1,390,000㎡ (140% of the previous year).
○ Vacancy rate at the end of 2014 was 4.3% (1.9 point decrease from the previous year).
＜Central 3 Wards＞
○ Absorption capacity (new demand) in 2014 was 1,060,000㎡ (174% of the previous year).
○ Vacancy rate at the end of 2014 was 3.5% (2.4 point decrease from the previous year).
■ "Survey of Large-Scale Office Building Market in Tokyo's 23 Wards" Framework
Research execution: End of December 2014
Research area: Tokyo's 23 Wards
Research subject buildings: Buildings with total office floor area exceeding 10,000㎡ with a construction completion date of 1986 or later
※ Supply volume is calculated based on publicly available information as well as on-site and "interview" research undertaken in December 2014.
※ Supply volume is a tabulation of gross total office floor area of all large-scale office buildings completed since 1986, including properties owned and used by the same company.
※ Absorption capacity (new demand) is the newly occupied office floor space for a given year of all large-scale office buildings constructed since 1986 and is calculated as follows: (vacant office floor space at the end of the previous year) + (newly supplied floor space) - (vacant floor space at the end of the current year). In order to compare "supply volume" and "demand volume", leasable floor space values are converted to a total floor area value by applying an average "effective rentable space ratio" for large-scale buildings.