Report of the Results of the 2014 Survey of Office Needs in Tokyo’s 23 Wards
December 17, 2014
■ Mori Building Survey Shows Increasing Demand for Office Space in Central Tokyo.
The survey found that 38% of the respondents plan to lease new office space "To Expand Business/To Accommo- date an Increase in Employees". This reason topped the list for the second consecutive year. Companies seeking a better location remained in second at 28%. Firms looking for a “Lower Rent/Lower-Priced Building” declined for a fourth straight year, dropping nine points to 22%, or sixth place, the lowest ranking for this reason in eight years. Companies that plan to lease more space increased for a third consecutive year, rising three points to 59%. Respondents that plan to rent more space specifically "Within 1 year" rose four points to 37%.
Mori Building Co., Ltd. conducted the 2014 Survey of Office Needs in Tokyo’s 23 Wards in order to better understand the future of the office building market in the 23 wards of Tokyo. Survey questionnaire forms regarding new demand for office space were mailed to companies that are headquartered in the 23 wards and are ranked in the top 10,000 in capitalization.
※Results will be reported to participating firms separately.
■ Survey Framework Research Period: Early October～End of October 2014 Methodology: Survey questionnaire forms were mailed to companies that are headquartered in the 23 wards and are ranked in the top 10,000 in capitalization. Response Rate: 20.7%（2,069 firms）
Reference: Historic effective response totals and response rates for 2010～2013
Research Timing 2010/11 2011/11 2012/11 2013/11
Response Rate 19.8%（1,976 firms） 20.6%（2,060 firms） 21.2%（2,118 firms） 21.5%（2,149 firms）
For more information & inquiries, please contact: Mr. Kazuaki Yamaguchi, Ms. Tomoko Fukamachi, Ms. Mari Yoshida Marketing Department, Leasing Operations Division, Mori Building Co., Ltd. Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6155 TEL 03-6406-6672 URL http://www.mori.co.jp
̶ 1 ̶ Report of the Results of the 2014 Survey of Office Needs in Tokyo’s 23 Wards
1 Future Plans to Lease New Office Space
○ 20% indicated a “Plan to Lease New Office Space”- this was the sixth consecutive year for this level of more than 20%. ○ Those indicating expansion of leased space (56%→59%) and those indicating expansion within 1 year (33% →37%) both increased, showing a firm trend for office demand.
The percentage of those indicating they "Plan to Lease New Office Space" remained mostly unchanged from last year at 20 %, exceeding 20% for the sixth consecutive year since 2009. (Figure 1) When examined by corporate demographics, "Manufacturing" (15%→16%) increased, "Non-manufacturing" (22%) remained the same, and "Financial/Insurance" decreased (21%→18%). When examined by funding source, "Japanese" (19%→20%) remained mostly unchanged and "Foreign" (27%→25%) decreased, yet "Foreign" still garnered higher points than "Japanese". (Figure 2) Regarding "Timing of Planned Lease of New Office Space", those indicating "Within 1 year" (33%→37%) increased from last year. Those indicating "3 years or longer" (46%→43%) decreased. (Figure 3) Regarding "Plans for Expansion vs. Reduction of Space", those indicating "Expansion" (56%→59%) increased for the third consecutive year, whereas "Reduction" (16%→13%) decreased for the third consecutive year. (Figure 4)
Figure 1: Plan to Lease New Office Space Figure 2: Intent to Lease New Office Space by Corporate Demographics 0 20 40 60 80 100 (%) 〈2013〉 2003 21%（365） 79%（1412） 0 20 40 60 80 100(%) Financial/Insurance 21%（34） 79%（125） 2004 18%（345） 82%（1526） Non-manufacturing 22%（326） 78%（1163） 2005 16%（340） 84%（1759） Manufacturing 15%（73） 85%（419） 2006 19%（321） 81%（1354） Japanese Company 19%（345） 81%（1449） 2007 24%（339） 76%（1102） Foreign Company 27%（83） 73%（230） Yes, we have plans No plans 2008 13%（176） 87%（1190） 2009 21%（411） 79%（1475） 〈2014〉 0 20 40 60 80 100(%) 2010 23%（443） 77%（1517） Financial/Insurance 18%（29） 82%（133） 2011 22%（445） 78%（1605） Non-manufacturing 22%（304） 78%（1081）
2012 23%（478） 77%（1633） Manufacturing 16%（76） 84%（397） 2013 20%（433） 80%（1707） Japanese Company 20%（340） 80%（1399） Foreign Company 25%（67） 75%（199） 20%（413） 80%（1641） 2014 Yes, we have plans No plans Yes, we have plans No plans
Figure 3: Timing of Planned Lease of New Office Space Figure 4: Plans for Expansion vs. Reduction of Space 0 20 40 60 80 100 (%) 0 20 40 60 80 100 (%) 2003 43%（157） 21%（77） 36%（131） 2004 35%（116） 24%（79） 41%（135） 2009 48%（197） 26%（107） 26%（107） 2005 36%（117） 24%（78） 41%（130） 2010 53%（235） 25%（111） 22%（97） 2006 36%（111） 28%（86） 36%（111） 50%（222） 28%（120） 22%（99） 2007 24%（80） 21%（70） 55%（185） 2011
2008 40%（80） 27%（46） 33%（57） 2012 54%（255） 29%（137） 17%（82） 2009 38%（150） 23%（91） 39%（161） 2013 56%（241） 28%（119） 16%（71） 2010 37%（156） 21%（91） 42%（185）
2011 38%（167） 23%（102） 39%（173） 2014 59%（240） 28%（113） 13%（54） 2012 31%（148） 21%（101） 47%（222） Expansion No change Reduction 2013 33%（140） 21%（88） 46%（197） 2014 37%（149） 20%（75） 43%（174） Within 1 year Within 2 years Longer
̶ 2 ̶ Report of the Results of the 2014 Survey of Office Needs in Tokyo’s 23 Wards
2 Reasons for Plans to Lease New Office Space
○ The top reason for planning to lease new office space was "To Expand Business/To Accommodate an Increase in Employees" (38%) for the second consecutive year. ○ On the other hand, “Lower Rent/Lower-Priced Building” (31%→22%) lost points for the fourth consecutive year, resulting in a 6th place rank.
As the reason for planning to lease new office space, "To Expand Business/To Accommodate an Increase in Employees" ranked No. 1 (40%→38%). Also, there still is a positive trend for the reasons to plan a new lease, such as "Better Location" (32%→28%), "Anti-seismic Design" (32%→27%). (Figure 5) On the other hand, "Lower Rent/Lower-Priced Buildings" (31%→22%) decreased by half compared to 4 years ago (43%), resulting in a 6th place rank this year. This drop to the 6th rank is the first time in 8 years since 2006, before the Lehman Shock. (Figure 5-2)
Figure 5: Reasons for Plans to Lease New Office Space ※ Multiple answers allowed. ※ Total number of responding firms is counted as 100. (%) 50 43 2010（390） 40 40 2011（398） 40 38 38 36 35 36 2012（406） 34 34 35 32 32 30 31 2013（422） 28 28 28 27 30 27 27 26 2014（399） 2424 24 24 22 2323 22 20 21 2021 20 18 19 16 16 15 15 13 12 12121212 12 12 11 10 9 9 9 9 9 9 10 8 8 8 8 8 6 6 7 7 5 6 5 5 5 3 3 3 2 2 1 1 1 2 2 1 1 2 2 1 0 Better Location Anti-seismic Design More Floorspace per Floor Higher Grade Facilities Lower Rent / Lower-Priced Building Superior Security Backup Systems Disaster Prevention Systems / Current Building is to be Redeveloped Corporate Status Location That Enhances (in the case of leasing) Building Owner Enjoys a High Degree of Trust Environment-Friendly Building Eco-conscious / Separate Office Necessity to Establish Annex / As a Temporary Move an Increase in Employees To Expand Business / To Accommodate To Pursue a New Business Project To Consolidate Offices Business Office To Establish a New Branch Office /
Figure 5-2: Trends in the Reason for Plans to Lease New Office Space
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
No. 1 No.1: To Expand Business / To Accommodate an Increase in Employees No. 2 No.2: Better Location
No. 3 No.3: Anti-seismic Design
No. 4 No.4: More Floorspace per Floor
No. 5 No.5: Higher Grade Facilities
No. 6 No.6: Lower Rent / Lower-Priced Building
No. 7 No.7: Superior Security
No. 8 No.8: Disaster Prevention Systems / Backup Systems
̶ 3 ̶ Report of the Results of the 2014 Survey of Office Needs in Tokyo’s 23 Wards
3 Desired Areas for Planned Lease of New Office Space
○ 82% of those with intent to lease new premises desire a location in the Central 3 Wards (Chiyoda, Chuo, and Minato). ○ Areas such as Toranomon, Marunouchi, Shinagawa (around station), which are areas where major transportation infrastructure development and urban redevelopment will take place in preparation for the Tokyo Olympics, gained major points.
Regarding desired areas by those who plan to lease new office space, the percentage answering the "Central 3 Wards" (79%→82%) increased from last year. (Figure 6) Areas such as Toranomon (12%→15%), Kamiyacho (4%→8%), Marunouchi (13%→17%), Shinagawa (around station) (11%→15%), Hamamatsucho (8%→11%) and Tamachi (8%→12%), which are areas where major transportation infrastructure development and urban redevelopment will take place in preparation for the Tokyo Olympics, gained major points. Also, Nihonbashi (16%) continued to gain many points. In "Other Wards", Shinjuku (16%→12%) and Shibuya (14%→13%), both of which gained many points last year, gained less points this year, and other areas in this category remained almost unchanged. (Figure 7)
Figure 6: Desired Areas for Planned Lease of New Office Space 0 20 40 60 80 100 (%)
2003 64% 36%
2004 61% 39%
2005 60% 40%
2006 63% 37%
2007 64% 36%
2008 62% 38%
2009 75% 25%
2010 81% 19%
2011 77% 23%
2012 77% 23%
2013 79% 21%
2014 82% 18%
Central 3 Wards Other 20 Wards
〈参考： 都心3区外〉 Figure 7: Desired Areas for Planned Lease of New Office Space ※ Multiple answers allowed. ※ Total number of responding firms is counted as 100. (%) 18 17
0 Ginza Marunouchi Otemachi Yurakucho Uchisaiwaicho Hibiya Kojimachi/ Bancho Hirakawacho/ Kioicho Iidabashi Akihabara Kanda/Ochanomizu Yaesu Nihonbashi Kyobashi Harumi Shiodome Shimbashi Kamiyacho Akasaka Roppongi Aoyama Hamamatsucho Daiba/Aomi Shinagawa (around station) Ariake Osaki Shibuya Ebisu Meguro Shinjuku Ikebukuro Yotsuya Toranomon Tamachi Tennozu/ Shinagawa seaside Toyosu
2012（472） 2013（422） 2014（337）
̶ 4 ̶ Report of the Results of the 2014 Survey of Office Needs in Tokyo’s 23 Wards
4 Business Continuity Planning (BCP)
○ The percentage of respondents with a BCP plan in place exceeds 50% as was seen last year and remains stable at a high level. ○ By industry “Financial / Insurance” has a higher percentage of having a BCP plan (72%) compared to other industries.
Percentage of firms with a BCP plan (52%→51%) in place exceeds 50%. (Figure 8) By industry, “Financial/Insurance” has a higher percentage of having a BCP plan (72%) compared to other industries. (Figure 9) Top BCP items include “Procedures to Confirm Employee Safety” (94%), “Emergency Supplies/Provisions for Employees” (90%) and “Procedures for Employees who can't return Home” (70%). (Figure 10)
Figure 8: BCP Status as of November 2014
n= 2021 No BCP & No Plans to Make BCP Existing BCP 21%（432） 25%（495）
No BCP, but Planning to Planning in Revise Existing Progress BCP BCP Exists + No BCP, 28%（566） but Planning in Progress 26%（528） BCP Exists 79%（1589） 51%(1023)
Figure 9: BCP Status by Corporate Demographics 2014 0 20 40 60 80 100 (%)
Planning to No BCP, but No BCP & No Plans Overall Existing BCP Revise Existing BCP Planning in Progress to Make BCP （2021） 25%（495） 26%（528） 28%（566） 21%（432）
Financial/Insurance 50%（80） 22%（35） 13%（21） 15%（24） （160）
Non-manufacturing 22%（298） 25%（346） 30%（405） 23%（315） （1364）
Manufacturing 23%（109） 30%（138） 29%（135） 18%（83） （465）
Japanese Company （1714） 23%（400） 26%（451） 29%（494） 22%（369）
Foreign Company 33%（86） 23%（59） 24%（63） 21%（54） （262）
※ Multiple answers allowed. Figure 10: BCP Content 2011 Survey(378) 2013 Survey(1097) ※ Total number of responding firms is counted as 100. 2012 Survey(1049) 2014 Survey(1013) (%) 94 93 94 100 89 86 89 90
80 70 70 67 65 65 62 61 60 58 59 60 58 53 54 53 60 47 43 43 42 44 38 38 38 40 35 37 35 33 33 30 26 26 27 28 20
0 Safety Confirm Employee Procedures to for Employees Supplies/Provisions Emergency can ’ t Return Home Employees who Procedures for Backup Procedures Information System Procedures Evacuation Communications Securing Company Management the Building Coordination with a Backup Office Establishment of Power Supply) (Uninterruptible UPS Standards Selection Office Building
̶ 5 ̶ Report of the Results of the 2014 Survey of Office Needs in Tokyo’s 23 Wards
5 Expectations of Positive Effect on Business Performance due to the Tokyo Olympics
○ The percentage of firms expecting enhanced performance on business with Tokyo having been chosen as the venue for the 2020 Olympics remains almost unchanged from last year (37%→36%). ○ More firms in 17 out of 30 industries indicated an increased number of "Expecting Enhanced Performance" responses than last year.
Those answering "Expecting Enhanced Performance" remained almost unchanged (37%→36%). Those answering "Not Sure" significantly decreased (31%→21%) whereas those answering "No Change" (32%→42%) increased. Examined by corporate demographics, more Japanese Companies (36%) are expecting a positive effect on their business compared to the Foreign Companies (31%). (Figure 11) Broken down by industry, more firms in 17 out of 30 industries indicated an increased number of "Expecting Enhanced Performance" responses than last year. "Architect Offices and Design Consultants", "Leasing", "Banks", "Chemistry and medical-supplies related manufacturers, sales", "Government Related Organizations", indicated increased points. (Figure 12) Figure 11: Expectations of Effect on Business Performance due to the Tokyo Olympics 0 20 40 60 80 100 (%) 0.7% 2013（2129） 37%（785） 32%（679） 31%（651） （14） Expecting Enhanced Overall Performance 2014（2037） 36%（729） 42%（864） 21%（421） 1.1% （23） No Change 0.6% 2013（1784） 31%（554） 30%（544） Japanese 38%（675） （11） Not Sure Company 1.2% 2014（1732） 36%（629） 42%（729） 20%（354） （20） Worsen
2013（313） 0.6% Foreign 33%（103） 36%（114） 30%（94） （2） Company 1.1% 2014（268） 31%（84） 45%（121） 22%（60） （3）
Figure 12: Expectations of Effect on Business Performance due to the Tokyo Olympics by Industry 0 20 40 60 80 100 (%) " " indicates industries with an increased number of 2013（2129） 37% 32% 31% 0.7% Overall "Expecting Enhanced Performance" responses than last year. 2014（2037） 36% 42% 21% 1.1% 0 20 40 60 80 100 (%) Manufacturing/ Architect 2013（8） 50% 50% 2013（59） 37% 34% 29% Offices and Sales of Machines, Design Consultants 2014（10） 60% 30% 10% Transport Plane 2014（60） Machines, etc. 32% 37% 30% 1% Manufacturing/ 2013（52） 50% 31% 19% Information 2013（244） 30% 31% 39% Sales on Mining, Processing and Oil, Metal, etc. 2014（55） 51% 36% 13% Computer Software 2014（266） 31% 39% 30%
Construction, 2013（150） 55% 27% 15% 3% Other 2013（83） 36% 35% 27% 2% Real Estate, Non-Manufacturing Warehousing, etc. 2014（140） 50% 36% 11% 3% Industries 2014（40） 31% 43% 26% Chemistry 2013（13） 2013（101） Leasing 38% 23% 38% 1% and Medical 18% 40% 42% 2014（10） 50% 40% Supplies Related 2014（82） 29% 54% 17% 10% Manufacturers, Sales Services (Temporary 2013（75） 49% 25% 24% 2% 2013（38） 29% 32% 39% Communication Staffing, 2014（32） Defense, etc.) 2014（89） 49% 34% 15% 2% 28% 38% 34% Investment 2013（57） 37% 30% 33% 2013（17） 24% 52% 24% Business and Educational Investment Advisors 2014（62） 45% 40% 15% 2014（18） 28% 55% 17%
Other 2013（83） 45% 21% 34% Clothing 2013（25） 24% 32% 44% Manufacturing Manufacturing, 2014（23） Industries 2014（89） 45% 36% 19% Sales 26% 52% 17% 5% 2013（210） 1% 2013（18） Trading 43% 26% 30% Security 28% 28% 44% Companies 2014（195） 42% 37% 19% 2% 2014（24） 25% 54% 21% Accounting Retail (Shopping, 2013（133） Office, Certified 2013（42） 24% 38% 38% 41% 29% 29% 1% Tax Accountant Dining Out, etc.) 2014（109） 40% 39% 17% 4% Office, Management 2014（41） 24% 63% 12% 1% Consultants Food Related 2013（34） 47% 26% 27% Government Related 2013（18） 11% 56% 33% Manufacturing, Organizations Sales 2014（45） 40% 29% 29% 2% 2014（17） 24% 52% 24% Mass Media, 2013（88） 45% 26% 2% Private Enterprises 2013（115） 22% 44% 34% Broadcasting, 27% (Foundations, Advertising 2014（74） 2014（137） and Publishing 39% 38% 23% Corporations, etc.) 23% 55% 22% Manufacturing/ 2013（99） 2013（24） Sales of Electricity, 33% 30% 36% 1% Life Insurance and 21% 62% 17% Precision 2014（98） 38% 43% 16% 3% Other Insurance 2014（30） 23% 60% 17% Instruments, etc. 2013（35） 31% 40% 29% Manufacturing/ 2013（34） 32% 38% 29% 1% Other Finance Sales of Fibers, (Credit Sales etc.) 2014（40） 35% 43% 20% 2% Papers, Pottery, etc. 2014（26） 19% 58% 19% 4%
2013（56） 46% 27% 25% 2% Law and 2013（28） 14% 46% 39% 1% Transportation 2014（64） 34% 44% 22% Patent Offices 2014（22） 5% 68% 27%
2013（10） 20% 50% 30% Electric Power, 2013（4） 25% 50% 25% Banks 2014（12） 33% 58% 8% 1% Gas, etc. 2014（6） 83% 17%
̶ 6 ̶