Detailed Market Trend Survey

November 4, 2015 Survey of the Large-scale O ce Building Market in ’s 23 Wards

■ Highlights ○ The vacancy rate in 2015 in Tokyo's 23 Wards, particularly in the Central 3 Wards, rose temporarily in the rst half of the year in part due to completion of o ce buildings with high vacancies. However, it is forecast to improve by the close of 2015 to 3.8% in the Central 3 Wards and 4.3% in Tokyo’s 23 Wards due to newly constructed buildings expected to be full upon completion and vacancies expected to be lled in existing buildings in the second half of the year, supported by rms’ expansion of business and/or accommodation of employee increases. ■ Supply Trends ＜Tokyo’s 23 Wards＞ ○ Annual supply in Tokyo’s 23 Wards from 2015 through 2019 will average 1,190,000m2/year, exceeding the previous average (1,030,000m2/year). ○ Supply for 2018-2019 will be larger than our expectations last year due to shifts in the completion period for large-scale o ce buildings scheduled to be built before and after this period. ＜Central 3 Wards＞ ○ Supply in the Central 3 Wards for the next 5 years will be 850,000m2/year, exceeding the average of the past decade (670,000m2/year). ○ The supply rate in the Central 3 Wards for the next 5 years will be 71%, an increase over the 56% rate of the past 5 years.

■ Demand Trends ＜Tokyo’s 23 Wards＞ ○ Vacancy rate at the end of 2014 dropped 1.9 points to 4.3%, compared to the end of the previous year. ○ The vacancy rate for the rst half of 2015 rose 0.3 points to 4.6%, compared to the end of the previous year, due to absorption capacity (600,000m2) falling below supply (750,000m2). ○ For year 2015, absorption capacity (1,050,000m2) and supply volume (1,110,000m2) will be mostly the same, and the vacancy rate at the end of 2015 is forecast to remain steady at 4.3%, the same as the end of the previous year. ＜Central 3 Wards＞ ○ Vacancy rate at the end of 2014 dropped 2.4 points to 3.5%. ○ The vacancy rate for the rst half of 2015 rose 0.8 points to 4.3%, compared to the end of the previous year, due to absorption capacity (390,000m2) falling below supply volume (540,000m2). ○ For year 2015, absorption capacity (730,000m2) will fall below supply volume (790,000m2), and the vacancy rate by the close of 2015 is expected to rise 0.3 points to 3.8%, compared to the end of the previous year.

Since 1986, Mori Building Co., Ltd. (Minato-ku, Tokyo; President & CEO Shingo Tsuji) has regularly conducted market surveys of supply and demand trends for 10,000m2-class or higher o ce buildings that were constructed in Tokyo’s 23 Wards since 1986 (hereinafter referred to as “large-scale o ce buildings”). Through analysis of the results of this survey from diverse angles, future o ce market trend forecasts are also developed. We are pleased to present you with the results of our survey in the following report.

■“Survey of the Large-scale O ce Building Market in Tokyo’s 23 Wards” Framework

Research area: Tokyo’s 23 Wards Research Subject Buildings: O ce buildings with gross oor area exceeding 10,000m2 and a construction completion date of 1986 or later

※“Supply volume” is calculated based on publicly available information, and on-site and “interview” research undertaken in December 2014. In addition, information current as of August 2015 has been added. ※This is a tabulation of gross total office floor space of all large-scale office buildings completed since 1986 including properties owned and used by the same company but excluding floor space reserved for non-office uses such as retail, residential, hotel, etc.

For more information & inquiries, please contact: Mr. Kazuaki Yamaguchi or Mr. Keita Oka｜ 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 Detailed Market Trend Survey

1-1 General Trends in Supply Volume

＜Tokyo’s 23 Wards＞ ○ Annual supply in Tokyo’s 23 Wards from 2015 through 2019 will average 1,190,000m2/year, exceeding the previous average (1,030,000m2/year). ○ Supply for 2018-2019 will be larger than our expectations last year due to shifts in the completion period for large-scale office buildings scheduled to be built before and after this period.

The large-scale office building supply volume in Tokyo’s 23 Wards is forecast to average 1,190,000m2/year over the next 5 years (2015–2019), exceeding the past average of 1,030,000m2/year (Figure 1). In particular, the supply volume for 2019 will be 1,830,000m2, which will reach the levels of large-scale supply from the year 2012. Regarding the number of properties and overall supply from 2015–2019, supply will increase by 16 properties (360,000m2). This information is based on a Mori Building survey at the end of 2014, with the addition of information as of August 2015. There were three major changes from the preliminary figures (released on April 22, 2015). The first change was the decrease in supply for the year 2017 (-530,000m2). The amount of decrease was carried over into 2018 and onwards. This may be due to the influence of recent reviews to profitability plans in light of recently rising construction costs, adjustments to rights related to large-scale development, and delays in municipal procedures. The second change was the accumulation of supply for the year 2019. Several projects we assumed would be completed in 2020 when the preliminary figures were released turned out to be scheduled to be completed in 2019. Adding the 2017 supply amount that had been moved to later years showed that the 2019 supply had increased dramatically (+560,000m2). The third change was the increase in supply volume due to plans that have newly surfaced. However, the majority of this increase was offices with a gross floor space of 10,000–29,999m2, so this has a limited impact compared to the first two points. (Also, totaling up changes in the supply period and revisions to estimated floor space shows an increase of 16 properties, or 360,000m2.) As a result, although upcoming supply is expected to stabilize in 2017, it is predicted to follow a step-like transition afterwards, rising greatly in 2018 and then further in 2019.

Figure 1: Large-scale Office Building Supply Volume Trends in Tokyo’s 23 Wards （10,000 ｍ2） 46 47 44 Supply (actual) 41 40 Supply - No. of Properties 42 36 37 Supply (planned) 250 32 32 29 30 28 31 29 Supply 28 26 24 216 25 21 21 19 19 19 19 19 23 16 16 200 12 15 14 23 22 183 183 Supply - Gross 175 Floor Space Average from 2015 154 Historic Average 1,190,000m2/year 150 1,030,000m2/year 125 131 114 118 119 121 119 117 108 111 107 100 104 99 92 91 100 86 85 87 83 74 72 77 65 63 56 55 58 50 36

0 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19

1986 - 2014 2015-2019 ① Properties ………………… 819 ① Properties ……………… 106 ② Gross Floor Space… 29,890,000m2 ② Gross Floor Space…5,950,000m2

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1-2 Supply Volume Trends by Office Building Scale

○ Over the next 5 years, super large-scale office buildings (30,000m2 and above) will account for a high proportion (86%) of total supply volume.

In Figure 2, supply (gross floor space) over several years Figure 2: Large-scale Office Building Supply grouped into 5-year periods has been broken down into 0% 20% 40% 60% 80% 100% 2 large-scale office buildings (gross office floor space of '90～'94 57％ 43％ Over 30,000ｍ 10,000-29,000ｍ2 10,000-29,999m2) and super large-scale office buildings '95～'99 70％ 30％ (gross office floor space of over 30,000m2). Over the '00～'04 81％ 19％ coming 5 years, super large-scale office buildings with 74％ 26％ office floor space exceeding 30,000m2 are forecast to '05～'09 account for a high proportion (86％) of total supply '10～'14 76％ 24％

volume (Figure 2). '15～'19 86％ 14％

1-3 Supply Volume Trends by Area

＜Central 3 Wards＞ ○ Supply volume for the next 5 years will be 850,000m2/year, exceeding the average of the past decade (670,000m2/year). ○ The supply rate for the next 5 years will be 71%, an increase over the 56% rate of the past 5 years.

The supply volume of large-scale office space in the Central 3 Wards (Chiyoda, Chuo, and Minato Wards) over the next 5 years is expected to average 850,000m2/year, exceeding the 670,000m2/year average of the past decade (Figure 3). Moreover, the supply volume to the Central 3 Wards is forecast to account for 71% of the total supply over the next 5 years, an increase over the last 5 years. On a year-by-year basis, the supply ratio is forecast at around 70%.

Figure 3: Large-scale Office Building Supply Volume by Area （10,000 ｍ2） 250 Central 3 Wards Others 20 Wards

2005～2014 2015-2019 183 200 Average Supply in the Central 3 Wards: 175 Average Supply in the Central 3 Wards: 2 154 670,000ｍ2/year 850,000ｍ /year 63 150 131 49 119 117 78 111 107 33 29 86 85 87 100 77 31 25 65 81 8 21 58 17 63 49 120 105 21 4 90 97 19 98 50 69 70 79 82 65 54 44 36 37 44

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Figure 4: Large-scale Office Building Supply Volume Figure 5: 5-Year Forecast of Large-scale Office Building Share by Area Supply Volume Share by Area 0 20 40 60 80 100（%） 0 20 40 60 80 100（%）

Central 3 Wards Others 20 Wards Central 3 Wards Others 20 Wards

75% 25% 2015 72%（790,000m2/year） 28%（310,000m2/year） '05～'09 （750,000m2/year） （250,000m2/year） 2016 77%（820,000m2/year） 23%（250,000m2/year） 56% 44% 2 2 '10～'14 （590,000m2/year） （460,000m2/year） 2017 70%（440,000m /year） 30%（190,000m /year）

2018 75%（980,000m2/year） 25%（330,000m2/year） 71% 29% '15～'19 2 2 （850,000m /year） （340,000m /year） 2019 65%（1,200,000m2/year） 35%（630,000m2/year）

‒ 2 ‒ Detailed Market Trend Survey

Figure 6 provides a more detailed look at the supply trends by major business area. The overall supply over the next five years will continue as follows (from largest to smallest): the Marunouchi-Otemachi area (1,360,000m2), the Nihonbashi-Yaesu area (740,000m2), the Shimbashi-Toranomon area (420,000m2), and the Akasaka-Roppongi area (330,000m2). This shows a concentration in the Tokyo CBD*. The supply volume in the Tokyo CBD over the next 5 years will be 2,990,000m2, which accounts for 50% of the overall supply for Tokyo’s 23 Wards (5,950,000m2) and 71% of the overall supply for the Central 3 Wards (4,230,000m2). Note that we have added the area, the Ebisu area, and the Kita-/Higashi-Shinagawa areas this year, in light of upcoming urban development.

Figure 6 : Supply Volume by Major Business Areas

429

159 Jimbocho 136 1 74 13 Akihabara Iidabashi 51 61 Akihabara 36 158 Iidabashi 221 6 Sudacho 29 9 Bancho 23 74 2 Shinjuku 21 Higashi-Nihonbashi Nishi-Shinjuku Kojimachi 52 4 18 Yotsuya 231 223 294 34 148 36 33 42 Ningyocho 77 Tokyo 6 Loop Road No. 2 Nihonbashi- Shimbashi-Akasaka- Marunouchi- 17 71 Yaesu 5 Kayabacho- Roppongi District Otemachi 12 Hatchobori 34 26 198 Uchisaiwaicho-181 8 - Yurakucho 5 Aoyama Kasumigaseki- 26 34 21 Nagatacho Ginza Station District Shimbashi- 111 88 Tsukiji Toranomon 14 37 10 Akasaka- 40 66 Shibuya Roppongi 51 Nishiazabu Hamamatsucho21 97 19 Hamamatsucho Shibuya 80 125 Kachidoki-Harumi 44 9 26 Toyosu- Shiba- Shinonome- 71 Mita Tatsumi 99 Ebisu Tamachi Shibaura-Kaigan 165 21

132 16 91 Shinagawa 145 126 Konan 116 13 -Osaki 113 Daiba-Ariake-Aomi Kita-Shinagawa Osaki Higashi-Shinagawa

Legend

● About Supply (unit:10,000ｍ2) 2015-2019 Planned Supply Volume： 1986-2014 Supply Volume: 39 Top value: 1986-201 total supply Over Less than Over Less than 30 Value in white indicate breakdown 100,000ｍ2 100,000ｍ2 300,000ｍ2 300,000ｍ2

Ｎ ● About area Area Specified for urgent urban Major Business Area Central Business District(CBD) redevelopment 0 1km 2km

*What is the Tokyo CBD? Tokyo CBD is comprised of areas in central Tokyo with a high level of both actual supply volume and future planned supply volume including the (1) Akasaka-Roppongi Area, (2) Marunouchi-Otemachi Area and (3) Shimbashi-Toranomon Area. These areas combined with the overlapping areas that have been specified for urgent urban redevelopment under the “Act on Special Measures Concerning Urban Renaissance” form the “Loop Road No. 2–Shimbashi-Akasaka-Roppongi District” and “Tokyo Station-Yurakucho Station District.” These areas are the focus of office building supply in central Tokyo and together define the Central Business District of Tokyo.

‒ 3 ‒ Detailed Market Trend Survey

1-4 Supply Volume Trends in New Projects and Reconstruction Projects

○ In the next 5 years, reconstruction projects will account for about 72% of new supply volume in the Central 3 Wards. ○ The Marunouchi-Otemachi Area and the Nihonbashi-Yaesu Area supply will be entirely derived from reconstruction projects.

Reconstruction plans comprise 58% of the overall supply volume for the next 5 years. From the perspective of the Central 3 Wards, reconstruction comprises 72% of the total. (See Figure 7.)

Figure 7: Reconstruction Project Share of Total Supply Volume 0 20 40 60 80 100 （%）

Reconstruction Projects New Projects

Total (23 Wards) 58% 42%

Central 3 Wards 72% 28% *“Reconstruction Project” means a project consisting of a large-scale office building (as defined in this survey) on the project site. It does not include the Others 20 24% 76% reconstruction projects that construct a large-scale office building on the former site of a residence(s), a hotel or a small-scale office building.

Examined by business district, the reconstruction ratio is clearly high in the Marunouchi-Otemachi, Nihonbashi-Yaesu, and Akasaka-Roppongi areas (Figure 8).

Figure 8: Reconstruction Projects by Major Business Areas

2 （10,000 ｍ ） Reconstruction Projects New Projects 0 140

120

100 0 80 136 60

40 74 21 2 27 20 31 23 9 21 21 17 16 10 12 0 3 0 1 0 -Otemachi area -Otemachi Marunouchi -Yaesu area Nihonbashi -Toranomon area Shimbashi Shibuya area -Roppongi area Akasaka area Shibaura-Kaigan area Hamamatsucho Konan area Kojimachi area area -Osaki Gotanda

‒ 4 ‒ Detailed Market Trend Survey

2-1 General Trends in Demand

This next section examines new demand trends using the concept of “absorption capacity.” As shown in Figure 9, the concept of “absorption capacity” is newly occupied floor space for the current year [(vacant floor space at the end of the previous year) + (newly supplied floor space) – (vacant floor space at the end of the current year)] in all large-scale office buildings as defined in this survey (over 10,000m2 and completed since 1986).

Figure 9: Concept of New Demand (Absorption Capacity)

（1）When absorption capacity is positive...

Stock at the end of last year Occupied Floor Space Vacant Floor Space

Absorption This Year New Supply Volume Capacity（＋）

Stock at the end of this year Occupied Floor Space Vacant Floor Space

（2）When absorption capacity is negative...

Stock at the end of last year Occupied Floor Space Vacant Floor Space

Absorption Capacity（−） This Year New Supply Volume

Stock at the Occupied Floor Space Vacant Floor Space end of this year

*Total Floor Space (gross) is calculated by applying the effective leasable space ratio for a typical large-scale office building (65.5%) to the leasable floor space(net).

‒ 5 ‒ Detailed Market Trend Survey

＜Tokyo’s 23 Wards＞ ○ Vacancy rate at the end of 2014 dropped 1.9 points to 4.3%, compared to the end of the previous year. ○ Absorption capacity (new demand) for the first half of 2015 rose by 39.5% to 600,000m2, compared to that during the preceding half year. ○ The vacancy rate for the first half of 2015 rose 0.3 points to 4.6%, compared to the end of the previous year, due to absorption capacity falling below supply (750,000m2).

Absorption capacity for large-scale office buildings in Tokyo’s 23 Wards in 2014 was 1,390,000m2. On the other hand, supply volume was 870,000m2, and with absorption capacity exceeding supply volume, the vacancy rate at the end of 2014 dropped 1.9 points to 4.3%, compared to the end of previous year. Absorption capacity in the first half of 2015 was 600,000m2, and although this is an increase over the second half of 2014 (430,000m2), supply volume rose to 750,000m2; and since the absorption capacity fell below supply volume, the vacancy rate rose 0.3 points (from the end of 2014) to 4.6%, as shown in Figure 10. Looking back on the year 2014, it is notable that the vacancy rate for the entire year dropped considerably because the new office space properties supplied were either full or nearly full upon completion and existing building vacancies continued to be filled. The first half of 2015 was notable in that 750,000m2 (around 70%) of the total supply volume had been supplied during this period, and that the supply of super large-scale buildings with a large vacancy had occurred at the same time. As the progress in filling vacancies in existing buildings during this same period was approximately the same level as that during the preceding half year, the amount of vacancies in newly constructed buildings is affecting to the rise in the vacancy rate. Although the vacancy rate increased, there are no apparent signs that demand is shrinking, as will be explained later. In 2013 and 2014, with improving corporate business results and fueled by the limited supply amount, the vacancy rate dropped 3.5 points in two years. As a result, there were fewer vacancies in the market, leading to fewer choices for tenants who desired to relocate. With improved supply and demand, property owners evidently began shifting from filling up vacancies to maintaining rent levels. This resulted in a situation where agreeing contract adjustment terms tended to take time; but new lease demand was strong, which has sustained some positive trends in reasons for leasing, such as "expanded business/accommodation of employee increase", or "better location".

Figure 10: Supply Volume, New Demand (Absorption Capacity) Supply Volume New Demand (Absorption Capacity) and Vacancy Rate Trends Vacancy Rate （10,000 ｍ2） （%） （%） 10 10 8.1 7.8 6.7 6.9 6.3 5.9 6.2 250 5.3 5.0 4.9 224 4.6 216 4.3 5 4.3 5 3.6 3.8 3.4 3.2 3.1 2.8 2.7 2.4 2.5 200 1.2 175 154157 142 139 139 0 0 150 130 123 125 121 122 119 115 119 117 99 99 97 92 91 91 91 100 88 86 85 87 74 80 77 75 72 69 65 66 60 54 58 44 48 43 36 50 34 31 21

0 st nd st '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 1 Half 2 Half 1 Half of '14 of '14 of '15

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＜Central 3 Wards＞ ○ Vacancy rate at the end of 2014 dropped 1.9 points to 4.3%, compared to the end of the previous year. ○ Absorption capacity (new demand) for the first half of 2015 rose by 8.3% to 390,000m2, compared to that during the preceding half year. ○ The vacancy rate for the first half of 2015 rose 0.8 points to 4.3%, compared to the end of the previous year, due to absorption capacity falling below supply volume (540,000m2).

Next, we will divide our examination into the Central 3 Wards and the other 20 wards. Absorption capacity for the Central 3 Wards in 2014 was 1,050,000m2. It was the first time that absorption capacity exceeded 1,000,000m2 since 2006 (8 years ago). Absorption capacity in the first half of 2015 was 390,000m2, which fell below the supply volume of 540,000m2. As a result, the vacancy rate rose 0.8 points (from the end of 2014) to 4.3%. In the remaining 20 wards, as absorption capacity was 210,000m2, which matched the supply volume levels of 210,000m2, the vacancy rate held steady from the end of 2014 at 5.1%, as shown in Figure 11. The vacancy level for the Central 3 Wards is forecast to see a declining trend, supported by continued positive demand by firms’ expansion of business and/or accommodation of employee increases, even more vacancies expected to be filled in existing buildings, and new properties scheduled to be full upon completion.

Figure 11: Supply Volume, New Demand (Absorption Capacity) and Vacancy Rate Trends by Area

Central 3 Wards Supply Volume Other 20 Wards Supply Volume Central 3 Wards Vacancy Rate Central 3 Wards New Demand Other 20 Wards New Demand Other 20 Wards Vacancy Rate

2 （10,000 ｍ ） （%） （%） 10 10 260 9.3 8.4 8.0

240 6.5 6.6 6.6 6.4 6.1 5.7 5.0 5.2 5.1 5.2 5.1 220 5.9 5.9 4.2 4.0 4.2 5.6 5 5 5.0 3.3 3.2 4.3 200 3.3 3.5 3.5 2.5 2.5 180 1.8

0 0 160

140 78 54 25 49 33 120 61 33 29 30 43 100

38 26 80 81 17 8 21 6 21 117 49 19 60 105 21 70 4 105 103 97 21 88 90 85 78 78 70 7 40 69 5 65 71 54 61 60 54 44 50 35 36 37 36 39 20 29 11 21 10 0 －4

st nd st －20 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 End of 1 Half 2 Half 1 Half '13 of '14 of '14 of '15

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2-2 Future Demand Trends

○ 20% of tenants indicated plans to lease new office space, exceeding 20% for the sixth consecutive year. ○ The ratios of tenants who desired "more floor space" (from 56% to 59%) and "within 1 year" (from 33% to 37%) increased.

In the following section, we would like to present our views on future demand trends, drawing on the results of the “Survey of Office Needs in Tokyo’s 23 Wards” (taken on October 2014), a survey conducted by Mori Building Co., Ltd. since 2003. The ratio of tenants who indicated plans to lease new office space remained at last year’s 20%, making this the sixth consecutive year since 2009 with 20% or more. (see Figure 12). When examined by company demographics, manufacturing rose from 15% to 16%; but non-manufacturing remained at 22%, and financial/insurance dropped from 21% to 18%. When examined by funding source, Japanese-funded companies remained mostly the same (19% to 20%), and foreign-funded companies dropped from last year (27% to 25%). However, foreign-funded sources are still higher point-wise than Japanese (see Figure 13). In regard to space for new office leases, tenants indicating plans to expand increased from 56% to 59% (showing continuous growth for the third year in a row); and those with plans to reduce space declined from 16% to 13%, also for the third consecutive year (see Figure 14). When asked about timing, those planning to lease office space within one year increased from 33% to 37% since last year's survey. Meanwhile, those planning to lease at least three years later decreased from 46% to 43% (Figure 15).

Figure 12: Planned Space Expansion vs.Reduction Figure 13: Intent to Lease New Office Space by Corporate 0 20 40 60 80 100 Demographics (%) 0 20 40 60 80 100(%) 2003 21%（365） 79%（1412） 〈2013〉 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 Companies 19%（345） 81%（1449） 2007 24%（339） 76%（1102） Foreign Companies 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） Non-manufacturing 2011 22%（445） 78%（1605） 22%（304） 78%（1081） Manufacturing 16%（76） 84%（397） 2012 23%（478） 77%（1633） Japanese Companies 20%（340） 80%（1399） 2013 20%（433） 80%（1707） Foreign Companies 25%（67） 75%（199） 2014 20%（413） 80%（1641） Yes, we have plans No plans Yes, we have plans No plans

Figure 15： Timing of Planned Lease of New Office Space Figure 14: Plans for Expansion vs.Reduction 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）

2007 24%（80） 21%（70） 55%（185） 2011 50%（222） 28%（120） 22%（99） 2008 40%（80） 27%（46） 33%（57）

2012 54%（255） 29%（137） 17%（82） 2009 38%（150） 23%（91） 39%（161）

2010 37%（156） 21%（91） 42%（185） 2013 56%（241） 28%（119） 16%（71） 2011 38%（167） 23%（102） 39%（173） 59%（240） 28%（113） 13%（54） 2014 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） Within1year Within 2 years Longer

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○ 82% of those with plans to lease new floor space desire to locate in the Central 3 Wards (Chiyoda, Chuo, and Minato). ○ Areas such as Toranomon, Marunouchi, and Shinagawa (station area) that have been announced as areas for which new development and transportation infrastructure is planned in preparation for the Tokyo Olympics gained a high point share.

When businesses planning to lease new office space were asked about their preferred area, those specifying the Central 3 Wards rose from 79% to 82%, showing an increase over 2013 results (Figure 16). Areas that have been announced as areas for which new development and transportation infrastructure is planned in preparation for the Tokyo Olympics have increased significantly in point share. These include areas such as Toranomon (12%→15%), Kamiyacho (4%→8%) Marunouchi (13%→17%), the area (11%→15%), Hamamatsucho (8%→11%), and Tamachi (8%→12%). Outside of the Central 3 Wards, both Shinjuku (16%→12%) and Shibuya (14%→13%) dropped in point share. All other areas remained about the same (see Figure 17).

Figure 16: 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 Others 20 Wards

Figure 17： Desired Areas for Planned Lease of New Office Space

*Multiple answers allowed 2012（472） 2013（422） 2014（337） *Total number of responding rms is counted as 100. (%) 18 17 〈Chiyoda Ward〉 〈Chuo Ward〉 〈Minato Ward〉 〈Reference:Other Wards〉 1616 16 1616 16 15 15 15 15 14 14 14 14 13 13 13 13 13 12 12 12 12 12 12 11 11 11 11 11 11 10 10 10 10 10 9 9 9 9 8 8 88 8 8 8 88 8 8 7 7 7 7 7 7 7 7 777 7 7 7 6 6 66 6 6 6 5 5 55 5 55 5 4 4 44 4 444 4 33 3 2 2 22 2 22 2 11 11 1 1 0 0 0 0 Marunouchi Otemachi Yurakucho Uchisaiwaicho HIbiya Iidabashi Akihabara Kojimachi/Bancho Hirakawacho/Kioicho Kanda/Ochanomizu Yaesu Nihonbashi Kyobashi Ginza Harumi Shibuya Ebisu Shinjuku Ikebukuro Yotsuya Ariake Shiodome Shimbashi Kamiyacho Akasaka Roppongi Aoyama Hamamatsucho Daiba/Harumi (around station) Shinagawa Toyosu Sea Side Sea Tennozu/Shinagawa Toranomon Tamachi Osaki

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○ Among the reasons for leasing new office space, "expanded business/accommodation of employee increase" (38%) continued as the top reason for the second year in a row. ○ Meanwhile, "lower rent" fell for the fourth consecutive year from 31% to 22%, moving to sixth place.

Among businesses responding that they planned to lease new office space, “expanded business/accommodation of employee increase” (40%→38%) was in first place for the second year in a row. Positive reasons for relocating stayed in the top spots, such as "better location" (32%→28%) and "anti-seismic design" (32%→27%), as shown in Figure 18. Also, "lower rent" (31%→22%) fell to half of its 2010 level of 43% four years previous, taking sixth place. It was the first time in eight years (since 2006, prior to the Lehman Brothers bankruptcy) that this criterion fell to sixth place (Figure 19). "Anti-seismic design" has maintained third place since 2011, and is becoming widely known as a basic condition that must be satisfied when selecting new office space.

Figure 18: Reasons for Planned Lease of New Office Space *This survey question is multiple answer. (%) *Accordingly if all applicable samples indicated an area, the percentage would be 100. 50 43 2010（390） 40 40 40 38 38 2011（398） 36 35 36 34 34 35 2012（406） 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 Lower rent/lower priced building redeveloped Current building is to be business project For pursuit of a new (in the case of leasing) high degree of trust Building owner enjoys a environment-friendly building Eco-conscious/ separate office Necessity to establish an annex/ As a temporary move branch office/business office For establishment of a new of employee increase business/for accommodation new department/for expanded For establishment of a Better location seismic performance) (building with superior Anti-seismic design More floorspace per floor Higher grade facilities Superior security (anti-crime) management company) provided by the building Backup systems(in the building/ Disaster prevention systems/ corporate status Location that enhances For consolidation of offices

Figure 19: 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: For establishment of a new department/for expanded business/for accommodation of employee increase No. 2 No.2: Better location

No. 3 No.3: Anti-seismic design (building with superior seismic performance) No. 4 No.4: More oorspace per oor

No. 5 No.5: Higher grade facilities

No. 6 No.6: Lower rent/lower priced building

No. 7 No.7: Superior security (anti-crime)

No. 8 No.8: Disaster prevention systems/Backup systems (in the building/provided by the building management company)

‒ 10 ‒ Detailed Market Trend Survey

3-1 Future Market Trends

○ The vacancy rate in 2015 in Tokyo's 23 Wards, particularly in the Central 3 Wards, rose temporarily in the first half of the year in part due to completion of office buildings with high vacancies. However, it is forecast to improve by the close of 2015 to 3.8% in the Central 3 Wards and 4.3% in Tokyo’s 23 Wards due to newly constructed buildings expected to be full upon completion and vacancies expected to be filled in existing buildings in the second half of the year, supported by firms’ expansion of business and/or accommodation of employee increases.

The situation during the first half of 2015 in Tokyo’s 23 Wards was as mentioned in section 2-1 above. As businesses seem to be maintaining a positive attitude and corporate business results continue to improve, the current rise in vacancies is seen as only temporary. Also, in addition to the comparatively small supply volume in the second half of 2015, it is predicted that some of the properties to be supplied will be filled upon completion. To add to this, we believe that absorption capacity will exceed supply during the second half of 2015, with even more vacancies expected to be filled in existing buildings. The vacancy rate at the end of 2015 is expected to be 4.3%. Supply volume for the year 2016 is predicted to remain at the same level as 2015. Absorption capacity will stay at the supply volume level, with the vacancy rate forecasted to be 4.2% at the end of 2016 (Figure 20).

Figure 20： Supply, New Demand (Absorption Capacity) and Vacancy Rate Trends （10,000 ｍ2） （%） 10 8.1 7.8 6.7 6.9 Vacancy 6.3 6.2 5.9 Rate (%) 5.3 4.3 4.6 4.3 5 3.8 4.2 250 3.4 3.1 3.6 3.2 2.7 2.8 2.4 224 2.5 1.2 216

Supply Volume 0 200 New Demand 175 (Absorption Capacity)

154157 142 150 139 139 130 125 119 121 119122 115 117 111 105 107106 99 99 91 91 88 91 100 86 85 87 80 74 77 75 72 69 65 58 60 54 48 Projected 44 Values 50 36 34 31

0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 1st Half '15 '16 of '15

‒ 11 ‒ Detailed Market Trend Survey

For the Central 3 Wards during the second half of 2015, one of the two super large-scale office buildings was supplied with vacancies, but the other is expected to be filled by completion. With even more vacancies expected to be filled in existing buildings and absorption capacity forecast to exceed supply, the vacancy rate at the close of 2015 is predicted to be 3.8%. Absorption capacity will stay at the supply volume level in 2016 as was the case in 2015, causing the vacancy rate to remain steady. As for the other 20 wards in the second half of 2015, to add to the fact that the supply volume was limited, a high percentage of these were properties owned and used by the same company. Since vacancies in existing buildings are expected to continue to be filled, absorption capacity is estimated to exceed the supply volume level, with a vacancy rate of 5.0%. Similarly, the vacancy rate of existing buildings at the end of 2016 is expected to decrease to 4.8%, in light of limited supply (see Figure 21).

Figure 21: Supply Volume, New Demand (Absorption Capacity) and Vacancy Rate Trends by Area

Central 3 Wards Supply Volume Other 20 Wards Supply Volume Central 3 Wards Vacancy Rate Central 3 Wards New Demand Other 20 Wards New Demand Other 20 Wards Vacancy Rate （%）

9.3 10 8.4 8.0

6.5 6.6 6.1 5.7 5.2 5.1 5.0 5.9 5.0 4.8 5.6 5 Vacancy Rate (%) 4.2 3.3 3.2 4.3 10,000 2 3.8 3.8 （ ｍ ） 3.3 3.5 220 2.5 1.8 Supply Volume 175 180 0 New Demand 154 157 (Absorption Capacity) 139 139 140 78 49 54 119 122 118 33 111 105 107 106 61 99 29 43 91 100 86 85 87 25 31 32 27 38 75 65 21 69 81 17 58 60 21 60 49 19 105 21 70 4 106 103 97 21 90 34 31 78 79 82 79 78 70 73 5 65 50 54 Projected 20 44 35 36 37 54 61 39 29 21 Values 0 -4 st 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 Half 2015 2016 -20 of 2015

‒ 12 ‒ Detailed Market Trend Survey

Major Large-Scale Office Buildings to be Completed in the Future (includes some completed projects) Floor Area Name of Project (Name of Building) Lead Project Developer(s) Location （m2） （ Tsubo） 2015 Sumitomo Fudosan Hirakawacho Building 12,381 3,745 Sumitomo Realty & Development Co., Ltd. Hirakawacho, Chiyoda-ku Cross Place Hamamatsucho 12,965 3,922 Corporation Shiba-Koen, Minato-ku NTT Urban Development Corporation, , Hulic Co., Ltd., Shinagawa Season Terrace 206,025 62,323 Konan, Minato-ku Tokyo City-Development Co., Ltd. Sumitomo Banking Corporation, East Wing 88,549 26,786 Sumitomo Mitsui Banking Corporation Marunouchi, Chiyoda-ku Kyobashi MID Building Project 11,916 3,605 MID Urban Development Co,. Ltd. Kyobashi, Chuo-ku Nihonbashi Building 23,235 7,029 Tokyo Tatemono Co., Ltd., The Iyo Bank, Ltd., Hulic Co., Ltd. Nihonbashi, Chuo-ku Merkmal Keio Sasazuka 38,449 11,631 Keio Juuki Seibi Co., Ltd. Sasazuka, Shibuya-ku Tokyo Nihonbashi Tower 138,000 41,745 Sumitomo Realty & Development Co., Ltd. Nihonbashi, Chuo-ku ", Hakuhodo Incorporated, Mitsui Sumitomo Insurance Co., Ltd., Terrace Square 52,851 15,987 Kanda-Nishikicho, Chiyoda-ku Taishukan Publishing Co., Ltd., Yasuda Real Estate Co., Ltd." DIC Building 29,995 9,073 Nissei Real Estate Co., Ltd. Nihonbashi, Chuo-ku Rakuten Crimson House 63,449 19,193 Redevelopment Association (Tokyu Corp., Tokyu Land Corp., others) Tamagawa, -ku Osaki Bright Tower 91,957 27,817 Redevelopment Association ( Co., Ltd., others) Kita-Shinagawa, Shinagawa-ku Osaki Bright Core 44,769 13,543 Redevelopment Association (Mitsui Fudosan Co., Ltd., others) Kita-Shinagawa, Shinagawa-ku YKK80 Building 20,919 6,328 YKK Fudosan Co., Ltd. Kanda-Izumicho, Chiyoda-ku Hulic Toranomon Building 12,211 3,694 Hulic Co., Ltd. Toranomon, Minato-ku Shibuya 1-chome Reconstruction Project 13,800 4,175 Tohka Co., Ltd. Shibuya, Shibuya-ku Tekko Building 117,000 35,393 Tekko Building Marunouchi, Chiyoda-ku Sumitomo Fudosan Mita Building 24,203 7,321 Sumitomo Realty & Development Co., Ltd., Sumitomo Fudosan Finance Co., Ltd. Shiba, Minato-ku Otemon Tower JX Building 108,000 32,670 Company, Ltd., JX Holdings, Inc. Otemachi, Chiyoda-ku Onward Kashiyama Shibaura Daiichi Building 22,246 6,729 Onward Kashiyama Co, Ltd. Kaigan, Minato-ku Urban Net Nihonbashi 2-chome Building 14,796 4,476 NTT Urban Development Corporation Nihonbashi, Chuo-ku East Ueno 2-chome Project 40,627 12,290 , Naeba Properties S.P.C. Higashi-Ueno, Taito-ku 2016 Mark Light Toranomon 11,955 3,616 Yasuda Real Estate Co., Ltd. Nishi-Shimbashi, Minato-ku Urban Net Ginza 1-chome Building 11,879 3,593 NTT Urban Development Corporation Ginza, Chuo-ku Sumitomo Fudosan Nibancho First Building 18,424 5,573 Sumitomo Fudosan Nibancho, Chiyoda-ku JR Shinjuku Miraina Tower 111,000 33,578 East Railway Company Shinjuku, Shinjuku-ku Tri-Seven Roppongi 31,437 9,510 Pembroke Roppongi 7 Real Estate Japan, LLC Roppongi, Minato-ku Sumitomo Fudosan Shinjuku Garden Tower 142,582 43,131 Sumitomo Realty & Development Co., Ltd. Okubo, Shinjuku-ku Area Project 22,987 6,954 Kami-Osaki, Shinagawa-ku Otemachi Financial City Grand Cube 193,800 58,625 Mitsubishi Estate Co., Ltd. Otemachi, Chiyoda-ku Tokyo Garden Terrace Kioicho 227,200 68,728 Seibu Properties Inc. Kioicho, Chiyoda-ku Shogakukan Building 17,799 5,384 Shogakukan Fudosan Hitotsubashi, Chiyoda-ku East Shibuya Redevelopment Project 15,800 4,780 NTT East Properties, Inc. Shibuya, Shibuya-ku Coca-Cola (Japan) Company, Limited New Company Building 11,462 3,467 Coca-Cola (Japan) Company, Limited Shibuya, Shibuya-ku Ie-no-hikari Sendagaya Building 15,089 4,564 Ie-no-hikari Association Sendagaya, Shibuya-ku KT Building 11,827 3,578 " Corporation" Moto-Akasaka, Minato-ku JEBL Akihabara Square 11,650 3,524 JR East Building Co., Ltd. Kanda-Neribeicho, Chiyoda-ku Roppongi 3-chome East District Redevelopment 202,500 61,256 Redevelopment Association (Sumitomo Realty & Development Co., Ltd., others) Roppongi, Minato-ku

Kyobashi 2-chome West District Redevelopment 119,050 36,013 Redevelopment Association(Nippon Tochi-Tatemono Co., Ltd., Tokyo Tatemono Kyobashi, Chuo-ku Co., Ltd., Shimizu Corporation, others) Sanno Project 12,106 3,662 The Sankei Building Co., Ltd., ORIX Corporation Akasaka, Minato-ku

Ginza 6-chome District 10 Redevelopment Project 147,900 44,740 Redevelopment Association Ginza, Chuo-ku (Daimaru Matsuzakaya Department Stores Co. Ltd., Mori Building Co., Ltd., others) ORIX Ueno 1-chome Building 14,388 4,352 ORIX Corporation Ueno, Taito-ku Sophia Tower 39,700 12,009 Kioicho, Chiyoda-ku 2017 Otemachi Park Building 149,000 45,073 Mitsubishi Estate Co., Ltd. Otemachi, Chiyoda-ku Minami-Aoyama 1-chome Project 11,403 3,449 Nippon Tochi-Tatemono Co., Ltd. Minami-Aoyama, Minato-ku Shibaura 3-chome Project 12,500 3,781 Sumitomo Fudosan Shibaura, Minato-ku Daiichi Nurihiko Building Reconstruction Project 11,800 3,570 Nurihiko Co., Ltd. Kyobashi, Chuo-ku

Shibuya Miyashitacho Project 35,085 10,613 Shibuya Miyashitacho Realty Shibuya, Shibuya-ku (, Taisei Corporation, Sapporo Real Estate Co., Ltd, Tokyu Construction Co., Ltd.) Green Asset Investment S.P.C. Uchisaiwaicho 2-chome Project 67,000 20,268 Uchisaiwaicho, Chiyoda-ku (Tokyu Land Corporation, Development Bank of Japan Inc., Kenedix, Inc.) TMA Project 11,951 3,615 Tokyo Tomin Bank, Limited Minami-Aoyama, Minato-ku Tokyu Building East No. 5 14,136 4,276 Bunei Tochi Tatemono Minami-Ikebukuro, Toshima-ku Nippon Seinenkan/Japan Sport Council Administrative Building 32,000 9,680 Nippon Seinenkan, Japan Sport Council Kasumigaokamachi, Shinjuku-ku Higashi-Ikebukuro 4-chome Project 14,621 4,423 Mitsubishi UFJ Trust and Banking Corporation Higashi-Ikebukuro, Toshima-ku Akasaka 1-chome Area Redevelopment Project 175,300 53,028 Redevelopment Association ( Kowa Real Estate Co., Ltd., others) Akasaka, Minato-ku Matsuzakaya Ueno South Wing Reconstruction Project 41,000 12,403 Daimaru Matsuzakaya Department Stores Co. Ltd. Ueno, Taito-ku Jingumae Project 42,863 12,966 Harajuku Town S.P.C. Jingumae, Shibuya-ku Hatchobori Project 12,900 3,902 Tokyo Tatemono Co., Ltd. Hatchobori, Chuo-ku

‒ 13 ‒ Detailed Market Trend Survey

Floor Area Name of Project (Name of Building) Lead Project Developer(s) Location （m2） （ Tsubo） 2017 Minami-Aoyama 3-chome Project 28,412 8,595 Avex Group Holdings Inc. Minami-Aoyama, Minato-ku Nittetsu Nihonbashi Building Reconstruction 27,370 8,279 Nippon Steel Kowa Real Estate Co., Ltd. Nihonbashi, Chuo-ku

Shin-Tokyo Takeda Bldg. 45,000 13,613 Mitsui Fudosan Co., Ltd., Takeda Pharmaceutical Company Limited, Nihonbashi-Honcho, Chuo-ku Takeda Pharmaceutical Real Estate Co, Ltd.

Meguro Station Area Redevelopment, Site A 126,671 38,318 Redevelopment Association (Tokyo Tatemono Co., Ltd., The Dai-ichi Life Insurance Kami-Osaki, Shinagawa-ku Company, Limited, Taisei Corporation, Takenaka Corporation) 2018 New Hibiya Project 189,890 57,442 Mitsui Fudosan Co., Ltd., Yurakucho, Chiyoda-ku Nishi-Shinjuku 3-chome Complex Project 21,342 6,456 TSI Holdings Co., Ltd. Nishi-Shinjuku, Shinjuku-ku Shimbashi 4-chome Project 18,000 5,445 Mori Building Co., Ltd., Obayashi-Shinseiwa Real Estate Co., Ltd. Shimbashi, Minato-ku Shiba-Koen 1-chome Building Project 33,598 10,163 Sumitomo Fudosan Shiba-Koen, Minato-ku Nishi-Shinagawa 1-chome Redevelopment Project, District A 177,260 53,621 Redevelopment Association (Sumitomo Realty & Development Co., Ltd., others) Nishi-Shinagawa, Shinagawa-ku

Hamamatsucho 1-chome Area Redevelopment Project 65,042 19,675 Redevelopment Association Hamamatsucho, Minato-ku (Mitsui Fudosan Residential Co., Ltd., Tosho Co., Ltd., Shimizu Corporation, others) TGMM Shibaura Project, Building A 148,067 44,790 Mitsui Fudosan Co., Ltd., Mitsubishi Estate Co., Ltd. Shibaura, Minato-ku Otemachi 2-chome Area Redevelopment Project, Building A 202,000 61,105 NTT Urban Development Corporation Otemachi, Chiyoda-ku Otemachi 2-chome Area Redevelopment Project, Building B 152,000 45,980 Urban Renaissance Agency Otemachi, Chiyoda-ku South Block Redevelopment Project 116,300 35,181 Tokyu Corp., others Shibuya, Shibuya-ku

Nihonbashi 2-chome Area Redevelopment Project, District A 58,084 17,570 Redevelopment Association Nihonbashi, Chuo-ku (Mitsui Fudosan Co., Ltd., Taiyo Life Insurance Company, Teikoku Sen-I Co., Ltd.) Hamamatsucho Station Area Project (Hamamatsucho 2-chome, Area 4, Block B) 99,700 30,159 Nippon Life Insurance Company, Obayashi Corporation Hamamatsucho, Minato-ku

Marunouchi 3-2 Project 173,856 52,591 Mitsubishi Estate Co., Ltd., The Tokyo Chamber of Commerce and Industry, Marunouchi, Chiyoda-ku Tokyo Kaikan Co., Ltd. Kanda-Neribeicho Redevelopment Project 30,795 9,315 Redevelopment Association (Sumitomo Realty & Development Co., Ltd., others) Kanda-Neribeicho, Chiyoda-ku

Nihonbashi 2-chome Area Redevelopment Project, Block C 143,372 43,370 Redevelopment Association Nihonbashi, Chuo-ku (Mitsui Fudosan Co., Ltd., Taiyo Life Insurance Company, Teikoku Sen-I Co., Ltd.) 2019 Konan 1-chome Area Business Facility/House Building, other construction 38,000 11,495 Hato Bus Co., Ltd., Urban Renaissance Agency Konan, Minato-ku Nihonbashi-Muromachi 3-chome Area Redevelopment Project, Area A 168,000 50,820 Redevelopment Association (Mitsui Fudosan Co., Ltd.) Nihonbashi-Muromachi, Chuo-ku Dogenzaka 1-chome Station Area Redevelopment Project 58,900 17,817 Redevelopment Association (Tokyu Land Corporation) Dogenzaka, Shibuya-ku Ikebukuro Building Reconstruction Project 50,084 15,150 Seibu Railway Co., Ltd. Minami-Ikebukuro, Toshima-ku Nanpeidai Project 46,954 14,204 Dogenzaka 121 (Tokyu Land Corporation) Dogenzaka, Shibuya-ku Otemachi 1-chome Area 2 Project 361,000 109,203 Mitsui Fudosan Co., Ltd., Mitsui & Co., Ltd. Otemachi, Chiyoda-ku Toranomon 2-10 Project 182,900 55,327 Hotel Okura Co., Ltd. Toranomon, Minato-ku Shibuya Station Area Development Project Term I (East Building) 181,000 54,753 Tokyu Corp., East Japan Railway Company, Co., Ltd. Shibuya, Shibuya-ku Toranomon Trust City World Gate 210,000 63,525 Mori Trust Holdings Inc. Toranomon, Minato-ku Sendagaya 5-chome North Area Redevelopment 43,600 13,189 Mitsubishi Estate Co., Ltd., Nippon Flour Mills Co., Ltd. Sendagaya, Shibuya-ku Udagawacho Area 15 Development Project 65,000 19,663 Parco Co., Ltd Udagawacho, Shibuya-ku

Toranomon 1-chome Redevelopment 175,000 52,938 Redevelopment Association Toranomon, Minato-ku (Mori Building Co., Ltd., Nishimatsu Construction Co., Ltd.)

Kasuga/Korakuen Station Area Redevelopment, North Block 84,957 25,699 Redevelopment Association(Mitsui Fudosan Co., Ltd., Mitsui Fudosan Residential Koishikawa, Bunkyo-ku Co., Ltd., Mitsubishi Jisho Residence Co., Ltd., Nippon Steel Kowa Real Estate Co., Ltd.)

Kasuga/Korakuen Station Area Redevelopment, South Block 94,921 28,714 Redevelopment Association (Mitsui Fudosan Co., Ltd., Mitsui Fudosan Residential Koishikawa, Bunkyo-ku Co., Ltd., Mitsubishi Jisho Residence Co., Ltd., Nippon Steel Kowa Real Estate Co., Ltd.)

*The supply volume figure provided by Mori Building is calculated from the actual office floor area, and does not agree with the total floor area figures shown in this chart which includes retail and residence floor areas. *In principle, projects that publish the completion date by fiscal year only are recorded as supply for the following calendar year. *Projects are excluded from this list if discrepancies are found between publicly available information and the results of Mori Building’s investigation. *In the column “Lead Project Developer(s), the companies and organization in brackets ( ) are major enterprises that are participating as an association member, investor in the special purpose company (S.P.C.), specified constructor, partner or joint venture party.

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