December 07, 2017

TOKYO 23 WARDS | Supply of New Office Space 2018 & Office Stock Pyramid 2018

Xymax Real Estate Institute hereby releases its report on the Supply of New Office Space 2018 and Office Stock Pyramid 2018 covering the Tokyo 23 Wards area. The volume of new office supply, which is an aggregation of rentable areas of offices that are newly constructed in the coming years (hereinafter, “new supply”), indicates the direct impact on the market balance in the future. The Office Stock Pyramid is an aggregation of the rentable areas of office buildings in the market and indicates the breakdown of the office building stock (rentable area and number of buildings) by size of the building (small & medium/large) and by age, as well as the proportion of large and small/medium-sized buildings and their age composition.

1 tsubo = approx. 3.3 sq m

SUMMARY OF RESULTS
TOKYO 23 WARDS \| Supply of New Office Space 2018 New supply in 2018–2020 is expected to be relatively large at around 200,000 tsubo per year, while new supply in 2021 is currently forecast at 87,000 tsubo, the smallest since 2008. Average new supply in 2018–2021 is expected to be 180,000 tsubo per year, exceeding 164,000 tsubo, the annual average of the past 10 years. 65% of new supply in 2018–2021 is concentrated in the three central wards of Chiyoda, Chuo and Minato. The ratio of new supply in Tokyo 23 Wards (2018–2021) to office stock at end of 2017 (new supply rate) is expected to be approx. 5.8% (average of 1.5% per year). TOKYO 23 WARDS \| Office Stock Pyramid 2018 Office stock at end of 2018 is expected to be 12.61 million tsubo on a rentable area basis, with small & medium-sized buildings and large buildings accounting for roughly the same amount:5.94 million tsubo (47%) and 6.68 million tsubo (53%), respectively. On a number of buildings basis, office stock is 8,899 buildings, of which small & medium-sized buildings account for more than 90% (8,162 buildings). The average age of buildings is 30.0 years for the entire stock, 30.7 years for small & medium-sized buildings, and 23.0 years for large buildings. Aging of stock is more prominent in small & medium-sized buildings. Compared to 2000, rentable area increased by approx. 3 million tsubo (approx. 31%), and number of buildings rose by approx. 500 (approx. 6%).

SUMMARY OF RESULTS

TOKYO 23 WARDS | Supply of New Office Space 2018
- New supply in 2018–2020 is expected to be relatively large at around 200,000 tsubo per year, while new supply in 2021 is currently forecast at 87,000 tsubo, the smallest since 2008.
- Average new supply in 2018–2021 is expected to be 180,000 tsubo per year, exceeding 164,000 tsubo, the annual average of the past 10 years.
- 65% of new supply in 2018–2021 is concentrated in the three central wards of Chiyoda, Chuo and Minato.
- The ratio of new supply in Tokyo 23 Wards (2018–2021) to office stock at end of 2017 (new supply rate) is expected to be approx. 5.8% (average of 1.5% per year).
TOKYO 23 WARDS | Office Stock Pyramid 2018
- Office stock at end of 2018 is expected to be 12.61 million tsubo on a rentable area basis, with small & medium-sized buildings and large buildings accounting for roughly the same amount:5.94 million tsubo (47%) and 6.68 million tsubo (53%), respectively.
- On a number of buildings basis, office stock is 8,899 buildings, of which small & medium-sized buildings account for more than 90% (8,162 buildings).
- The average age of buildings is 30.0 years for the entire stock, 30.7 years for small & medium-sized buildings, and 23.0 years for large buildings. Aging of stock is more prominent in small & medium-sized buildings.
- Compared to 2000, rentable area increased by approx. 3 million tsubo (approx. 31%), and number of buildings rose by approx. 500 (approx. 6%).