Xymax Real Estate Institute releases the results of Tokyo 23 Wards Supply of New Office Space Survey 2015. The volume of new supply is a direct impact on market balance. This survey covers the office buildings that are over 3,000 tsubo (approx. 9,900 sqm, 1 tsubo=3.3 sqm) in gross floor area, expected to be completed in the coming years in Tokyo 23 Wards. Xymax Real Estate Institute compiles the actual new additions (including estimate) to the office space market, excluding owner-occupied spaces.
The average annual new supply in Tokyo 23 Wards in 2015-2018 in this survey is 180,000 tsubo (Figure 1), roughly equivalent to that in 2014-2017 in our last year's release*. The four-year annual average new supply is finally expected to be equivalent to the annual average in 2003-2014 at around 190,000 tsubo, or slightly greater, after adding spaces of less-than 10,000 tsubo buildings to be provided by new or additional projects.
The average annual supply of large buildings with over 10,000 tsubo in gross floor area in 2015-2018 is expected to be 160,000 tsubo, slightly greater than the historical average of 150,000 tsubo.