New Research

Osaka City New Supply of Office Buildings & Office Stock Pyramid 2015

Xymax Real Estate Institute is releasing a report on new supply of office buildings and "Office Stock Pyramid" in Osaka City. New supply is the total rentable spaces that will be constructed in the coming years, and "Office Stock Pyramid" is the summary of the total rentable office space existing in the market. The former represents the market flow and the latter represents the stock in the market. Our data also includes the percentage of new additions to existing office stock ("Ratio of New Supply"), showing the impact of new supply to the overall market. These data are important in analyzing Osaka's future office market balance.

Prior to this release, Xymax Real Estate Institute has released reports on new supply* and Office Stock Pyramid** for Tokyo 23 Wards. We will release these data for Tokyo 23 Wards and Osaka City on a regular basis.

Key Findings

New Supply

  • ・New supply of office space in Osaka city in 2015-2018 is expected to be an average of approx. 15,000 tsubo per year based on rentable area; which is roughly a half of 31,000 tsubo per year in the last ten-year average.
  • ・Of the new supply expected as of now, 90% are of large buildings with more than 10,000 tsubo gross floor area.

Office Stock Pyramid

  • ・Office building stock in Osaka City as of the end of 2014 was 2,700,000 tsubo in 1,571 buildings.
  • ・Data breakdown:
    Based on Rentable Area: 52% are large buildings. 48% are small/medium buildings.
    Based on Number of Buildings: 12% are large buildings. 88% are small/medium buildings.
  • ・Average age of large buildings is 23.3 years influenced by continuous supply after the bubble period.
  • ・Average age of small/medium buildings is 27.0 years influenced by reduced supply after the bubble period.
    Future concern is the aging of small/medium building stock which are older than that of large buildings.
  • ・Ratio of New Supply: After additions of new supply in 2015-2018, the office stock will increase by a relatively subdued 2.2% (average of 0.5% per year).

Reference: Osaka City and Tokyo 23 Wards

New Supply (buildings with 3,000 tsubo or greater gross floor area)

  • ・Osaka City's 15,000 tsubo average annual new supply is less than one-tenth of Tokyo 23 Wards' 180,000 tsubo.
    Office Stock Pyramid (buildings with 300 tsubo or greater gross floor area)
  • ・Osaka City's 2,700,000 tsubo total rentable area is about one-fourth of Tokyo 23 Wards' 11,250,000 tsubo.
  • ・Osaka City and Tokyo 23 Wards have a similar percentage of large buildings and small/medium buildings (based on rentable area and number of buildings).
  • ・Small/medium building stock is aging in both Osaka City and Tokyo 23 Wards.
  • ・Osaka City's building stock is slightly more aged than that of Tokyo 23 Wards. The percentage of 20 years old or greater buildings are also high in Osaka City compared to Tokyo 23 Wards.

(1 tsubo = approx. 3.3 sqm)

* "Supply of New Office Space Survey 2015" February 2, 2015
** Office Stock Pyramid 2014" April 17, 2014

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