Since 2003, Mori Building Co., Ltd. (Minato-ku, Tokyo, President & CEO - Shingo Tsuji) has conducted an annual Survey of Office Needs in Tokyo's 23 Wards in order to better understand trends in the office building market.
This survey regarding new demand for office space was sent to companies headquartered in the 23 wards and ranked in the top 10,000 in terms of capital. We have compiled the 2018 survey results, and we would like to share some of our findings and insights in the following report.
■ The percentage of firms planning to lease new office space continues to increase, with more than 60% of these firms responding that they are "Planning to Expand Office Space."
■ For the sixth consecutive year, the number one reason for leasing new office space was "To Expand Business/To Accommodate an Increase in Employees."
■ The ratio of firms whose rent had increased as a result of the latest rent revision was 91%, the highest ever since the survey began.
The demand for offices remains stable, as many firms are expanding their office rental space, increasing their employee numbers and raising their rents. For the sixth consecutive year, the number one reason for leasing new office space was "To Expand Business /To Accommodate an Increase in Employees", while wanting to move to a "Lower Rent/ Lower-Priced Building" was the lowest rank since the survey began, showing an on-going positive trend for relocation. When asked about the challenges companies are facing regarding office environment, "Strengthening internal communication and collaboration" and "Consideration of employee health" ranked at the top. More companies are striving to relocate to higher quality offices for the purpose of acquiring more talented employees and promoting new ways of working.
1. Plans to Lease New Office Space
・ The percentage of firms planning to lease new office space continues to increase, with more than 60% of these firms responding that they are planning to expand their space.
・ Around 50% of those firms that are planning to lease new office space intend to do so within the next few years.
2. Reasons for Plans to Lease New Office Space
・ For the sixth consecutive year, the number one reason for leasing new office space was "To Expand Business/To Accommodate an Increase in Employees".
・ "Lower Rent/Lower-Priced Building" came in at 7th place, the lowest rank ever since the survey began.
3. Desired Areas for Planned Lease of New Office Space
・ Areas that are expected to become even more appealing achieved top rankings, including the Tokyo station area and the Shimbashi-Toranomon area.
4. Current Rent and Reasonable Rent for New Office Space
・ The percentage of price range over 25,000 yen per tsubo increased in both the "Current Monthly Rent" and "Reasonable Monthly Rent to Lease New Office Space".
5. 2018 Rent Revisions
・ 21% of firms received a rent revision within the last year.
・ The ratio of firms whose rent had increased as a result of the latest rent revision was 91%, the highest ever since the survey began.
6. Issues Regarding Business Management and Creating a Better Office Environment
・ In regard to business management, the issue given the highest priority was "Strengthening human resources."
・ As an issue regarding the creation of a better office environment, cost-cutting decreased, while "Strengthening internal communications" and "Consideration of employee health" have increased.
7. Number of Employees and Work Space
・ 45% of firms indicated plans to increase their number of employees.
・ For future workspace policies, the ratio of firms responding to "Maintain the status quo" decreased, while the ratio of companies seeking "Expansion" or "Promotion of streamilining" increased.