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Metropolitan Areas Office Demand Survey 2016 Demand Trends
Office demand is changing. Capture the trends.

Keeping workers and improving productivity are urgent matters facing companies in Japan; labor shortage from the aging population and decline in working-age population is a nationwide problem. More companies are starting to allow employees to be flexible on where and when they work. This trend will impact the office space demand. For example, not only the required size of office but also the preferred location and the way of using the office space will be different in the future.

Xymax Real Estate Institute started a regular survey on the use of office space and ways of how people work. Based on the survey, we examine the impact of the trends on office space demand. The study of demand trends from our first survey is covered in this report.

Summary of Survey Results: Demand Trends
  1. Office Space Demand Change October 2015 – September 2016 (Page 2 – Page 7)
    • Demand is strong. "Increase" and "expand" exceeded "decrease" and "downsize".
      Number of workers: Increased (36%) Decreased (13%)
      Size of office: Expanded (9%) Downsized (3%)Figure 1
    • Similar result for rent per tsubo (incl. CAM): Increased (13%) Decreased (4%)
    • Variance between increase/expand and decrease/downsize in office size and rent was different by industry and by location.
    • Some companies still think their office is not large enough (33%).
  2. Use of Office Now / How the Use Has Changed (Page 8 – Page 11)
    • Companies are beginning to allow alternative workspaces such as hot-desking office, home of employees, mobile-work office, etc.
    • Use of Office and Alternative Workspaces Available Now
    • Refresh spaces (22%)
    • Hot-desking office (18%)
    • Branch offices equipped the same as the main office (23.8%)
    • Work-from-home program (15.7%)
    • Mobile-work office (4.4%)Figures 10, 12
    • Year-on-Year Changes
    • Meeting rooms and personal desk areas were often expanded in new layout.
    • Other than the layout change, work-from-home programs topped the list of changes.Figures 11, 13
  3. Outlook (2-3 years) – Office Space Demand in Near Future (Page 12 – Page 13)
    • Demand will remain strong. "Increase" and "expand" exceeded "decrease" and "downsize".
      Number of workers: Increase (38%) Decrease (3%)
      Size of office: Expand (20%) Downsize (4%)Figure 14
  4. TOPICS: Expand Office into Areas Outside Tokyo (Page 14 – Page 15)
    • Of the companies with office in Tokyo, 16% said they are interested in having office somewhere else.Figure 16
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