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 2017 survey results, and we would like to share some of our findings and insights in the following report.
■ Approximately 60% of firms planning to lease new office space are 'Planning to Expand Office Space'.
■ For the fifth consecutive year, the number one reason to lease new office space was 'To Expand Business/To Accommodate an Increase in mployees'.
■ Approximately 40% of firms indicated plans to increase employee numbers. For future workspace policies too, the trends toward 'expansion' and 'promoting streamlining' have strengthened.
The percentage of firms planning to lease new space is increasing from year to year and is at 24%. Of the reasons cited for leasing new office space, 'To Expand Business/To Accommodate an Increase in Employees' was the number one response for the fifth consecutive year and 'Better Location' and 'More Floor Space per Floor' remain in top positions. Approximately 40% of firms indicated plans 'To Increase Employee Numbers', resulting in firm demand for office space. For future workspace policies, the proportion responding 'Maintain the status quo' decreased and the proportion of firms seeking 'Expansion' or 'Promotion of Streamlining' increased.
1. Plans to Lease New Office Space
● The percentage of companies planning to lease new office space rose to 24%.
● 59% of companies that are planning to lease new office space plan to expand floor space.
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 fifth consecutive year.
● The percentage of companies selecting the answer 'Location That Enhances Corporate Status' increased from last year.
3. Desired Areas for Planned Lease of New Office Space
● Shinagawa (around the station) increased 4 percentage points from last year, rising into second place.
● Toranomon, Tamachi, Hamamatsucho, and Shibuya, which have major developments underway, are highly popular areas.
4. Current Rent and Reasonable Rent for New Office Space
● About 80% of all firms have a monthly rent of less than 30,000 yen per tsubo.
● The proportion of firms for which the reasonable rent for a new lease is less than 15,000 yen per tsubo decreased and the proportion for which it is 15,000 yen or more increased.
5. 2017 Rent Revisions
● 19% of firms received a rent revision within the last year.
● 87% of firms received a rent increase after the revision, which greatly exceeded the 60% rate for 2007.
6. Employee Numbers & Work Space
● 42% of firms indicated plans to increase employee numbers.
● 30% of respondents said that the amount of workspace per person was 'insufficient'.
● For future workspace policies, the proportion responding 'Maintain the status quo' decreased and the proportion of companies seeking 'Expansion' or 'Promotion of streamlining' increased.