New Research

Metropolitan Areas Office Demand Survey Autumn 2017
Expansion of work style reforms and changes in office space demand

More companies are starting to allow employees to be flexible on where and when they work, in order to secure human resources and improve productivity on the back of a decline in labor force. This trend will have an impact on office space demand. Against this backdrop, Xymax Real Estate Insititute started a survey on a semi-annual basis in autumn 2016 on office use and work styles, analyzing their influence on office space demand. This report covers the results of our third survey.

Summary of Survey Results
  1. Office Space Demand Change (October 2016 – September 2017) (Page 2 – Page 6)
    • 37.5% of companieshad an increase in the number of office workers over the past year. This is larger than companies thathad a decrease (12.3%) (Figure 1). 8.6% of companies expanded their office space, while 2.2% downsized (Figure 2). Office space demand was robust.
    • Similar result for rent per tsubo (incl. CAM): Increased (15.9%) Decreased (1.9%) (Figure 3).
    • 32.6% of companies still think that their current office is not large enough (Figure 4).
  2. Promoting Work Style Reforms (Page 7 – Page 11)
    • 29.1% of companies currently promote work style reforms. Including companies that have already carried out the reforms, 37.9% of companies have introduced work style reforms (Figure 6).
    • Most popular motive was decision of management (77.9%, Figure 7). Most popular purpose was to improve productivity (67.1%, Figure 8).
    • 70% of companies realize the effects of the reforms “very much” or “somewhat” (Figure 9).
  3. Diversification of Work Places (Promotion of Telework) (Page 12 – Page 16)
    • 26.2% of companies aremaking efforts in providing places and programs for telework (Figure 18). Alternative work places are becoming more available, as evidenced in the growth in “work-from-home program” (19.2%) and “use of serviced or shared offices provided by specialized operators” (6.7%) from the previous survey (Figure 19).
    • Larger companies have a higher introduction rate of work-from-home programs and third place offices (Figure 20).
    • Office space per person is smaller at firms allowing telework than those that do not (Figure 22).
  4. What Companies Require in an Office (Page 17 – Page 19)
    • The most popular tangible element was “convenient location” (88.6%), followed by “good cleaning, sanitation, and maintenance conditions” (82.8%) and “high security performance” (82.0%) (Figure 23). The most intangible elements were “comfortable work environment” (89.6%) and “motivates employees” (85.5%), indicating companies’awareness toward employee satisfaction (Figure 24).
  5. Topics: Interest in Using Third Place Offices (Page 20 – Page 21)
    • 20–30% of companies are very interested or somewhat interested in the five major third place offices (Figure 26). Especially high in “support features for workers with small children” (35.7%).
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