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, which monitors new demand for office space, is sent to companies headquartered in Tokyo's 23 wards and ranked in the top 10,000 globally in terms of capital. We have compiled the results of the 2019 survey, and we would like to share some of our findings and insights in the following report.

  • 27% of firms indicated they planned to lease new office facilities; of these, more than 60% indicated plans to expand
  • 44% of firms̶the highest percentage over the past decade̶indicated that their reason for leasing new space was 'To Expand Business/To Accommodate an Increase in Employees' (the mostcommon reason for seven consecutive years)
  • The ratio of firms whose rent had increased as a result of the latest rent revisions was 93%, the highest since the survey began

The overall situation is unchanged this year, with many companies expanding their business and their number of employees, expanding their office space and facing rising rents. We can see from this that there is continued demand for office space. For the seventh consecutive year, the #1 reason for leasing new office space was "To Expand Business/To Accommodate an Increase in Employees"; in this most recent survey this garnered the highest percentage of responses over the past decade. For the third consecutive year, the #2 reason was "Better Location," and the #3 reason, for the third consecutive year, was "More Floorspace per Floor." This shows a continued trend towards relocation. To add to this, the number of firms that view expenditure on creating an office environment as a necessary investment and not simply a cost is on the rise, and we believe that workplace programs and workspaces will change even more rapidly in the coming years to accommodate more diverse working styles.

  • 1.Plans to Lease New Office Space
  • 27% of firms indicated plans to lease new office space. Of these, more than 60% indicated plans to expand.
  • Around 50% of firms planning to lease new office space intend to do so within the next two years.
  • 2.Reasons for Plans to Lease New Office Space
  • 44% of firms indicated that the reason for leasing new office space was "To Expand Business/To Accommodate an Increase in Employees."This percentage was the highest it has been the past decade, and was the top reason given for seven consecutive years.
  • "Better Location" was the #2 reason for the third consecutive year, and "More Floorspace per Floor" was #3 for the third consecutive year.
  • 3.Desired Areas for Planned Lease of New Office Space
  • Areas that are expected to become even more appealing achieved top rankings; these included the Tokyo station area and the Shimbashi-Toranomon area.
  • 4.Current Rent and Reasonable Rent for New Office Space
  • The ratio of firms considering 25,000 yen per month per tsubo and above to be a reasonable amount to pay for new office space continues to increase.
  • 5.2019 Rent Revisions
  • 24% of firms received a rent revision within the last year.
  • The ratio of firms whose rent increased as a result of their latest rent revision was 93%, the highest since the survey began.
  • 6.Number of Employees
  • 43% of firms indicated plans to increase their employee numbers.
  • 7.Programs, activities and office environments etc. relating to working styles
  • Around 50% of firms considered expenditure on office environments to be necessary investments and not simply costs.
  • The number of firms stressing the importance of human resource development and diversity is on the rise.
  • Around 60% of firms think positively about activities aimed at new styles of working, such as flex-time programs, working from home, etc.
  • 25% of firms permit their employees to hold a second job or a side job. Overall, around 70% of firms have an attitude of acceptanceregarding second jobs or side jobs.
  • 8.Initiatives regarding environmental problems and other social issues
  • Around 20% of firms responded that they are already implementing such initiatives or plan to do so.
  • Around 50% of firms with at least 300 employees responded that they are already implementing such initiatives or plan to do so.