Press Release

2016-12-20

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2016-12-20
Mori Building Co., Ltd.

2016 Survey of Office Needs in Tokyo's 23 Wards

Since 2003, Mori Building Co., Ltd. (Minato-ku, Tokyo, President & CEO - Shingo Tsuji) has regularly conducted a Survey of Office Needs in Tokyo's 23 Wards in order to better understand trends in the office building market.
A survey regarding new demand for office space was sent to companies headquartered in the 23 wards and ranked in the top 10,000 in capitalization.We have compiled the 2016 survey results, and we would like to share some of our findings and insights in the following report.

■Over 60% of firms planning to lease new office space are “Planning to Expand Office Space”.
■“More Floorspace per Floor” moved up two places to second for the first time in nine years .


Of the reasons cited for leasing new office space, the number one response was "To Expand Business/To Accommodate an Increase in Employees", followed by “More Floorspace per Floor” in second place.
Approximately 40% of firms indicated a plan “To increase employee numbers”, resulting in firm demand for office space. In creating an office environment, it became clear that “Open meeting space” and “Free address” were at the strong positive trend.

1. Plans to Lease New Office Space
● 22% of firms indicated a plan to lease new office space.Of these, 64% indicated plans for expansion.

2. Reasons for Plans to Lease New Office Space
● The primary reason for planning to lease new office space was 'To Expand Business/To Accommodate an Increase in Employees' for the fourth consecutive year.
● 'More Floorspace per Floor' was second place for the first time in 9 years (2007).
● 'Better Location' and 'Anti-seismic Design' were placed highly as usual.

3. Desired Areas for Planned Lease of New Office Space
● When examined by area "Shimbashi", "Toranomon" areas along Loop Rd. No. 2, "Hamamatsucho", and "Tamachi" which all lie between Tokyo Station and Shinagawa Station, increased in points.

4. Current Rent and Reasonable Rent for New Office Space
● 55% of all firms have a monthly rent of less than 20,000 yen per tsubo.
● There is little difference between current rent and what rent firms expect to pay to lease new office space.

5. 2016 Rent Revisions
● 18% of firms received a rent revision within the last year.
● 79% of firms received a rent increase after the revision. The increase rate in 2016 is the largest since 2007.

6. Employee Numbers & Work Space
● 40% of firms indicated a plan to increase employee numbers.
● The amount of workspace per person was approximately 28% for 'Lacking'.
● In terms of workspace measures, “Open meeting space” and “Free address” were measures preferred for emphasis in the future.

Please refer to the PDF file for more information.

Please address inquires regarding this press release to:

Mr. Kazuaki Yamaguchi, Mr. Keita Oka, or Mr. Shintaro Morita
at the Marking Department, Leasing Operations Division, Mori Building Co., Ltd.

Location Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6155
Tel 03-6406-6672

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