2014-04-22

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2014-04-22
Mori Building Co., Ltd.

Market Trend Survey of Large-Scale Office Buildings in Tokyo's 23 Wards

Special Bulletin Report of Survey Results as of December 31, 2013

Since 1986, Mori Building Co., Ltd. (Minato-ku, Tokyo; President & CEO Shingo Tsuji) has regularly conducted market surveys of demand and supply trends for 10,000㎡-class or higher office buildings that were constructed in Tokyo's 23 wards since 1986 (hereinafter referred to as "large-scale office buildings"). Having just completed the tabulation of the results of our most recent survey, we are pleased to present you with this report.

■ Supply Trends
Tokyo's 23 Wards
○ Average annual supply volume over the next 5 years (1,050,000㎡/year) will remain at the same level as the historic average supply volume (1,040,000㎡/year).
○ Supply volume in 2014 will be 880,000㎡ (152% of the previous year's volume).
Central 3 Wards
○ Average annual supply volume over the next 5 years (720,000㎡/year) will account for 69% of the supply volume of Tokyo's 23 Wards.
○ Supply volume in 2014 of 710,000㎡ (131% of the previous year's volume) will account for 81% of the supply volume of Tokyo's 23 Wards.

■ Demand Trends
Tokyo's 23 Wards
○ Absorption capacity (new demand) in 2013 was 990,000㎡ (71% of the previous year).
○ Supply volume in 2013 was 580,000㎡ (33% of the previous year's volume). Vacancy rate at the end of 2013 was 6.2% (1.6 point decrease from the previous year).
Central 3 Wards
○ Absorption capacity (new demand) in 2013 was 610,000㎡ (78% of the previous year).
○ Supply volume in 2013 was 540,000㎡ (56% of the previous year's volume). Vacancy rate at the end of 2013 was 5.9% (0.6 point decrease from the previous year).

■ "Survey of Large-Scale Oce Building Market in Tokyo's 23 Wards" Framework
○ Research execution: End of December 2013
○ Research area: Tokyo's 23 Wards
○ Research subject buildings: Oce buildings with total oor area exceeding 10,000㎡ with a construction completion date of 1986 or later

※ Supply volume is calculated based on publicly available information as well as on-site and "interview" research undertaken in December 2013.
※ The amount of supply volume is a tabulation of gross total office floor area of all large-scale office buildings completed since 1986 including Mori Building properties.
※ Absorption capacity (new demand) is the newly occupied office floor space for a given year of all large-scale office buildings constructed since 1986 and is calculated as follows: (vacant office floor space at the end of the previous year) + (newly supplied floor space) - (vacant floor space at the end of the current year). In order to compare "supply volume" and "demand volume", leasable floor space values are converted to a total floor area value by applying an average "effective rentable space ratio" for large-scale buildings.

Please refer to the PDF file for more information.

Please address inquires regarding this press release to:

Jungo Nishio or Keita Oka｜Marketing Department, Leasing Operations Division, Mori Building Co., Ltd.

Location Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6155, Japan

Tel 03-6406-6672