Survey of the Large-scale Office Building Market in ’s 23 Wards

October 2, 2013 Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

■Summary of the Results ○ The vacancy rate in the 23 wards peaked at the end of 2012 (7.8%) and is forecast to fall to 7.0% at the end of 2013. ○ The vacancy rate in the Central 3 Wards has been flat since the end of 2012 (6.5%) and is forecast to stay at the same rate until the end of 2013. ○ The vacancy rate in other 20 wards peaked at the end of 2012 (9.3%) and is forecast to fall to 7.7% at the end of 2013. ■Supply Trends ＜Tokyo’s 23 Wards＞ ○ The annual supply over the next 5 years from 2013 to 2017 (930,000m2/year) will fall below the average from 1986 through 2012 (1,050,000m2/year). ○ Supply in 2013 (580,000m2) is forecast to be at a lower level, reaching only 33% of last year (1,750,000m2) and only 55% of the average from 1986 through 2012 (1,050,000m2/year). ＜Central 3 Wards＞ ○ The average annual supply over the next 5 years from 2013 to 2017 (670,000m2/year) will fall below the average of the past decade (810,000m2/year). ■Demand Trends ＜Tokyo’s 23 Wards＞ ○ Absorption capacity in 2012 (1,390,000m2) fell below supply volume (1,750,000m2). Consequently, the vacancy rate at the end of 2012 increased. ○ Absorption capacity in the first half of 2013 (590,000m2) exceeded the supply volume (410,000m2). Consequently, the vacancy rate fell to 7.0% (0.8 point decrease compared with the end of 2012). ＜Central 3 Wards＞ ○ Absorption capacity in 2012 (780,000m2) fell below supply volume (970,000m2). Consequently, the vacancy rate at the end of 2012 increased. ○ Absorption capacity in the first half of 2013 (360,000m2) remained at approximately the same level as the supply volume (390,000m2), leaving the vacancy rate flat at 6.6%. ■Others ○ On September 8, 2013, Tokyo was selected as the venue for the 2020 Olympics and Paralympics. This together with the growth strategy of the Abe Administration will benefit the economy as a whole over the next 7 years. It is also expected that the office market in Tokyo will be positively impacted by this economic growth.

Since 1986, Mori Building Co., Ltd. (Minato-ku, Tokyo; President & CEO Shingo Tsuji) has regularly conducted market surveys of demand and supply trends for 10,000m2-class or higher office buildings that were constructed in Tokyo’s 23 wards since 1986 (hereinafter referred to as “large-scale office buildings”). Through analysis of the results of this survey from diverse angles, future office 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 Office Building Market in Tokyo’s 23 Wards” Framework

Research area: Tokyo’s 23 wards Research Subject Buildings: Office buildings with gross floor area exceeding 10,000m2 with 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 2012. In addition, information current as of July, 2013 has been added. ※ This is a tabulation of gross total office floor space of all large-scale office buildings completed since 1986 including Mori Building properties but excluding floor space reserved for non-office uses such as retail, residential, hotel, etc. ※“New Demand” (absorption capacity) is the newly occupied office floor space for a given year of all large-scale office buildings constructed since 1986: (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 (net) values are converted to a gross floor space value by applying an average “effective rentable space ratio” for large-scale buildings.

For more information & for inquiries, please contact: Mr. Jungo Nishio or Mr. Keita Oka Marketing Department, Leasing Operations Division, Mori Building Co., Ltd. Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6155 TEL 03-6406-6672 URL http://www.mori.co.jp Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

1-1 General Trends in Supply Volume

＜Tokyo’s 23 Wards＞ ○ Annual supply in Tokyo’s 23 Wards over the next 5 years will average 930,000m2/year, which is below the past average (1,050,000m2/year). ○ 70% of total supply volume for 2013 (580,000m2) was completed in the first half of 2013. ○ Annual supply for 2017 will reach 1,280,000m2 (122% of the past average), overtaking the average.

The large-scale office building supply volume in Tokyo’s 23 wards is forecast to average 930,000m2 over the next 5 years (2013-2017), falling below the past average of 1,050,000m2/year (Figure 1). Although the supply volume in 2013 is at a lower level, reaching only 33% of last year (1,750,000m2) and only 55% of past average (1,050,000m2), the 4 years from 2014 are forecast to be have an average supply of 1,010,000m2, which is relatively similar to the past average. Also, because 70% of total supply volume for 2013 (580,000m2) was supplied in the first half of 2013, the remaining new supply is likely to have limited effect on the market in the second half of 2013. Supply volume for the 2014-2017 period will be more than the amount predicted at the end of 2012 due to recently announced plans and formalization of previously tentative plans. Although the supply volume for 2014-2015 (around 1,000,000m2) will remain nearly the same as the past average, it is forecast to exceed the average at 1,280,000m2 in 2017, after dropping to 720,000m2 in 2016.

【Figure 1: Large-scale Office Building Supply Volume Trends in Tokyo’s 23 Wards】

（ten 41 42 Completed Properties thousand （1） 40 36 Supply - no. of properties m2） 47 37 32 （1） 44 46 * “Lost” properties in brackets ( ) “Lost” Properties 250 （3） （2） 31 32 30 28 28 29 Planned Properties 24 26 25 （1） 21 216 21 Supply 29 15 19 （1） 16 200 12 14 13 183 19 20 21 175 16 9 Supply - gross floor space *”Lost” floor space in brackets ( ) 154 Average from 2013～2014 Historic average 1010,000m2/year 2 150 1,050,000m /year Average from 2013 114 125 121 930,000m2/year 128 104 （6） 118 119 119 117 100 108 99 114 （2） （1） （1） 91 100 83 92 91 （6） 86 85 74 72 77 72 55 65 56 （1） 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

1986～2012 2013～2017 ① Properties …………… 784 ③ Gross Floor Space …28440000m2 ⑤ Current Stock…28270000m2 ① Properties …………… 79 ② “Lost” Properties ……… 9 ④ “Lost” Floor Space…170000m2 ② Gross Floor Space … 4630000m2

1-2 Supply Volume Trends by Office Building Scale

○ Over the next 5 years, super large-scale office buildings (over 30,000m2) will account for a high proportion (87%)of total supply volume

Next, this report examines supply trends by building scale. In Figure 2, 【Figure 2. Large-scale Office Building Supply】 supply (gross floor space) over several years grouped into 5-year periods 0% 20% 40% 60% 80% 100% 2 2 has been broken down into large-scale office buildings (gross office floor Over 30,000m 10,000~29,000m 50％ 50％ space of 10,000~29,999m2) and super large-scale office buildings (gross '88～'92年 office floor space over 30,000m2). Over the coming 5 years, super '93～'97年 65％ 35％

large-scale office buildings with office floor space exceeding 30,000m2 are '98～'02年 80％ 20％

forecast to account for a high proportion (87%) of total supply volume. '03～'07年 80％ 20％

'08～'12年 70％ 30％

'13～'17年 87％ 13％

‒ 1 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

1-3 Supply Volume Trends by Area

＜Central 3 Wards＞ ○ Supply volume for the next 5 years will be 670,000m2/year, falling below the average of the past decade (810,000m2/year). ○ Although the supply volume for 2013 (540,000m2/year) did not change from that expected at the end of 2012, the predicted supply volume for the upcoming 4 years from 2014 (average of 640,000m2/year) is forecast to increase to an average of 710,000m2/year.

The supply volume of large-scale office space in the Central 3 Wards over the next 5 years is expected to fall to 670,000m2/year which is below the average (810,000m2/year) of the past decade (Figure 3). If we examine each year, we find that the supply volume for 2013 has not changed from the level estimated at the end of 2012 (540,000m2), but that of the upcoming 4 years from 2014 increase to an average of 710,000m2/year which is higher than the prediction at the end of 2012 (average of 640,000m2/year). On the other hand, as a percentage of the whole, the Central 3 Wards will account for 73% of the supply volume over the next 5 years (Figure 4), seeing an increase over the last 5 years. Although the supply volume in the other 20 wards was extremely low for 2013, large-scale redevelopment projects are planned for the next 4 years in several of the other 20 wards including Koto Ward, Setagaya Ward, Ward, Shinagawa Ward, etc., which will likely cause an increase in the proportion of supply volume from the other 20 wards (Figure 5).

【Figure 3: Large-scale Office Building Supply Volume by Area】 （10,000m2） 250 216 Other 20 Wards

2003~2012 Central 3 Wards 35 Average supply in the Central 200 2 175 3 Wards: 810,000m /year 2014~2017 154 2013~2017 Average supply in the Central Average supply in the Central 3 Wards: 710,000m2/year 3 Wards: 670,000m2/year (Based on data collected as of Jul 2013) 150 121 78 128 49 119 117 114 33 29 91 86 85 100 77 47 181 72 65 81 16 39 8 21 58 49 4 20 105 21 97 50 88 90 69 75 75 81 65 54 44 36 37 52 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

2014-2017 Average Supply in the Central 3 Wards: 540,000m2/year (Based on data collected in Dec 2012)

【Figure 4: Large-scale Office Building Supply Volume Share by Area】【Figure 5: 5-Year Forecast of Large-scale Office Building Supply Volume Share by Area】 0 20 40 60 80 100 （%） 0 20 40 60 80 100 （%） Central 3 Wards Other 20 Wards Central 3 Wards Other 20 Wards 78% 22 % '03～'07 （1,070,000m2/year） （310,000m2/year） 93% 7% 2013 2 2 （540,000m /year） （40,000m /year） （万） 250 53% 47% '08～'12 82% 18% 2 2 その他20区 （560,000m /year） （500,000m /year） 2014 （750,000m2/year） （160,000m2/year） 200 35 都心3区 66% 34% '02～'11年都心3区 '12～'16年都心3区 73% 27% 2015 2 2 '13～'17 （750,000m /year） （390,000m /year） 平均供給78万㎡/年 平均供給66万㎡/年 （670,000m2/year） （250,000m2/year） 150 78

72% 28% 49 2016 （520,000m2/year） （200,000m2/year） 29 100 58 181 33 13 21 81 23 63% 37% 8 49 2017 3 （810,000m2/year） （470,000m2/year） 105 21 103 50 88 90 66 69 65 74 67 44 54 36 36 34 0 2002年 2003年 2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年

‒ 2 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

Figure 6 reveals a more detailed look at supply volume trends by major business area. The supply volume in the -Otemachi area greatly surpasses other areas at 840,000m2, and is followed by the - (600,000m2) and Akasaka-Roppongi areas (410,000 m2). This shows the concentration in the Tokyo CBD*. The supply volume in the Tokyo CBD over the next 5 years will be 2,270,000m2, which will account for 49% of total supply for all of Tokyo’s 23 Wards (4,630,000m2) and 67% of total supply for the Central 3 Wards (3,370,000m2).

【Figure 6: Supply Volume by Major Business Areas】

361

158 84 64 51 19 11 45 31 158 40 Sudacho Iidabashi 29 Jinbocho 9 Akihabara Bancho 23 169 Higashi-Nihonbashi Shinjuku 21 277 Nishi-shinjuku 53 60 4 230 18 34 36 41 183 Ningyocho 76 109 36 Kojimachi 23 Tokyo Ring Road No. 2 -- Akasaka-Roppongi District 71 12 - Marunouchi- Yurakucho Station District Otemachi Nihonbashi- Yaesu 189 34 Kayabacho- 21 Uchisaiwaicho- 161 14 Hatchobori - 19 34 21 Nagatacho Aoyama 116 Akasaka- Shinbashi- Roppongi 29 10 37 66 18 88 Nishiazabu 19 Hamamatsucho 66 Legend Hamamatsucho 73 ●About Supply (unit: 10,000m2) 99 Kachidoki-Harumi - Shinonome- 39 Top value: 1986~2017 total supply Shiba-Mita Tatsumi 30 Values in white indicate breakdown 71 98 2013～2017 Planned Supply Volume: over less than 161 100,000m2 100,000m2 18 - 1986～2012 Supply Volume: over less than 134 300,000m2 300,000m2 21 91 143 ●About Area Shinagawa 91 Major Business Area 113 Konan Central Business District (CBD) Area Specified for urgent urban Daiba-Ariake- redevelopment Ｎ -Osaki 0 1km 2km Osaki

* What is the Tokyo CBD? 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) Shinbashi-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 “Ring Road No. 2 -Shinbashi-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 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

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

○ In the next 5 years, reconstruction projects will account for about 62% of new supply volume in the Central 3 Wards (a 10-point decrease compared with the previous year). ○ Net stock increase in the Central 3 Wards (1,820,000m2) is roughly half of total new supply volume (3,370,000m2).

As shown in the breakdown of supply volume for the next 5 years (Figure 7), reconstruction projects will account for 62% of the new supply volume in the Central 3 Wards, which represents a 10-point decrease compared with the 72% recorded in the previous year’s survey. When examining all 23 wards, reconstruction projects comprise approximately 49% of the supply volume, which is a 6-point decrease compared with last year’s 55% level.

※ “Reconstruction Project” means a project consisting of the reconstruction of a large-scale office building (as defined in this survey) on the project site. It does not include the redevelopment projects that construct a large-scale office building on the former site of a residence(s), a hotel or small-scale office building.

【Figure 7: Reconstruction Project Share of Total Supply Volume】

0 20 40 60 80 100 （%）

Reconstruction Projects New Projects

Total (23 Wards) 49% 51%

Central 3 Wards 62% 38%

Other 20 Wards 17% 83% Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

Examined by business district, the reconstruction ratio is clearly high in the Marunouchi-Otemachi district (99%), the Nihonbashi-Yaesu district (83%), the Akasaka-Roppongi district (60%), and the Jimbocho district (68%). As a whole, the Tokyo CBD has a total reconstruction ratio of 73% which exceeds the high 62% level for the Central 3 Wards.

【Figure 8: Reconstruction Projects by Major Business Areas】

Unit: 10,000m2

120 Legend

Reconstruction projects 100 New projects 1 CBD area 80

60 10 82 40 16 50

20 29 18 6 24 9 21 13 17 18 14 5 9 0 0 0 1 Marunouchi-Otemachi area Nihonbashi-Yaesu area Akasaka-Roppongi area Toyosu-Shinonome-Tatsumi area Shinbashi-Toranomon area Gotanda-Osaki area Jinbocho area Hamamatsu-cho area Kojimachi area Konan area Ginza area

‒ 4 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

【Reference: Calculating Net New Supply from Reconstruction Projects】 As a result of our 2009 survey, we found that the net increase of office floor space from reconstruction projects, calculated by subtracting the total floor area before reconstruction from the new supply volume realized by the reconstruction projects, corresponded to 26% of the new supply volume (Figure 9) By applying this coefficient to new supply from reconstruction projects and adding that to new supply from greenfield projects in order to calculate the net total increase in office supply within Tokyo’s Central 3 Wards over the next 5 years, the result is roughly half (1,820,000m2) of the total supply volume (3,370,000m2).*

* The net increase of the office floor area calculated by subtracting the total floor area before reconstruction from the new supply volume realized by the reconstruction projects corresponded to 26% of new supply volume. (Reference: Market Trend Survey of Large-Scale Office Buildings in 23 Tokyo Wards in 2008.)

Formula: Increase in office stock ＝ Increase in stock from × Increase in stock from in Central 3 Wards (1,550,000m2) reconstruction projects non-reconstruction projects

Central 3 Wards supply Central 3 Wards Net increase ＝ × × volume (3,320,000m2) reconstruction rate (72%) coefficient (26%) ＋ Central 3 Wards supply Central 3 Wards nonreconstruction × volume (3,320,000m2) project rate (28%)

【Figure 9: Change in Office Stock Before and After Reconstruction (case study of 16 projects)】

（10,000m2） 93 100 Net Increase 26%

69 (240,000m²)

50

0

Legend

Total office floor space (stock) before reconstruction

Total office floor space (stock) after reconstruction

‒ 5 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

2-1 General Trends in Demand

＜Tokyo’s 23 Wards＞ ○2012 new demand (absorption capacity) reached 1,390,000m2 (1.5 times the level of the previous year). Also, the new demand (absorption capacity) for the first half of 2013 was 590,000m2, which shows an increase from the second half of 2012 (500,000m2). ○The supply volume for 2012 reached 1,750,000m2 (approximately 1.7 times the past average), resulting in a vacancy rate of 7.8% at the end of 2012 (0.9 point increase compared with the previous year). The supply volume in the first half of 2013 was 410,000m2, resulting in a vacancy rate of 7.0% (0.8 point decrease compared to the end of 2012). ○For the first half of 2012, absorption capacity (890,000m2) fell below the supply volume (1,410,000m2) but in the second half of 2012, absorption capacity (500,000m2) exceeded the supply volume (340,000m2). This trend continued in the first half of 2013, with absorption capacity (590,000m2) exceeding supply volume (410,000m2). ＜Central 3 Wards＞ ○2012 new demand (absorption capacity) reached 780,000m2 (3.7 times the level of the previous year). Also, the new demand (absorption capacity) for the first half of 2013 was 360,000m2, which shows an increase from the latter half of 2012 (330,000m2). ○The supply volume for 2012 reached 970,000m2 (approximately 1.7 times the average for the past 5 years), resulting in a vacancy rate of 6.5% (0.8 point increase compared with the previous year). The supply volume in the first half of 2013 was 390,000m2, resulting in a vacancy rate of 6.6% (0.1 point increase compared to that at of the end of 2012). ○For the first half of 2012, absorption capacity (450,000m2) fell below the supply volume (680,000m2), but in the second half, absorption capacity (330,000m2) exceeded the supply volume (290,000m2). For the first half of 2013, the absorption capacity (360,000m2) again fell below the supply volume (390,000m2).

This next section examines new demand trends using the concept of “absorption capacity”. As shown in Figure 10, 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 10: Concept of New Demand (Absorption Capacity)】

（1）When absorption capacity is positive... （2）When absorption capacity is negative...

Stock at the Stock at the Occupied Floor Space Vacant Floor Space Occupied Floor Space Vacant Floor Space end of 2010 end of 2010

Absorption Absorption 2009 New Supply Volume 2009 New Supply Volume Capacity (+) Capacity (-)

Stock at the Stock at the Occupied Occupied Floor Space Vacant Floor Space Vacant Floor Space end of 2011 end of 2011 Floor Space

※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). （万） 250 その他20区

200 35 都心3区 '02～'11年都心3区 '12～'16年都心3区 平均供給78万㎡/年 150 78 平均供給66万㎡/年 49 29 100 58 181 33 21 13 23 8 49 81 105 21 103 3 50 88 90 66 69 65 74 67 44 54 36 36 34 0 2002年 2003年 2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年

‒ 6 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

2012 absorption capacity for large-scale office buildings in Tokyo’s 23 wards was 1,390,000m2 (1.5 times the level of the previous year) resulting in a third consecutive year showing an increase. On the other hand, because supply volume exceeded absorption capacity at 1,750,000m2 (1.7 times the average for the past 5 years), the vacancy rate at the end of 2012 rose by 0.9 points to 7.8%. If we compare the first half of 2012 with the second half, absorption capacity (890,000m2) fell below supply volume (1,410,000m2) in the first half. However, in the second half, absorption capacity (500,000m2) exceeded supply volume (340,000m2). It should be noted that 2012 was characterized by the majority of the total year’s supply volume, 81% (1,410,000m2), becoming available in the first half. This resulted in an increased vacancy rate for the first half with the absorption capacity (890,000m2) falling below the supply volume. The absorption capacity however, remained at a high level compared to the entire previous year. Since supply flattened out in the second half, the absorption capacity exceeded the supply volume, resulting in a fall in vacancy rate. Absorption capacity in the first half of 2013 increased to 590,000m2, compared to the amount in the second half of 2012 (500,000m2). On the other hand, because supply (410,000m2) has continued to be lower than absorption capacity since the second half of 2012, the vacancy rate at the end of the first half of 2013 declined by 0.8 points to 7.0%. (Figure 11)

【Figure 11: Large-scale Office Building Supply Volume, New Demand (Absorption Capacity) and Vacancy Rate Trends】

8.4 7.8 7.0

Jun '12 Dec '12 Jun '13

(10,000m2) 8.8 10.8 8.1 7.8 6.7 6.3 6.9 （%） 250 5.9 4.9 5.3 224 3.8 3.4 3.1 3.6 216 3.2 2.7 2.4 2.8 2.5 1.2 200 183 182 Supply volume 175 New demand 154 157 (Absorption capcacity) 150 142 Vacancy rate 130 139 123 125 121 122 118 119 115 119 117 99 92 91 91 91 100 88 86 85 83 80 77 74 72 65 69 54 44 48 36 50 34 31

0 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12

150 141

100 89

59 50 50 41 34

0 1st half '12 1st half '13 2nd half '12 （万） 250 その他20区

200 35 都心3区 '02～'11年都心3区 '12～'16年都心3区 平均供給78万㎡/年 150 78 平均供給66万㎡/年 49 29 100 58 181 33 21 13 23 8 49 81 105 21 103 3 50 88 90 66 69 65 74 67 44 54 36 36 34 0 2002年 2003年 2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年

‒ 7 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

2012 absorption capacity of large-scale office buildings in the Central 3 Wards was 780,000m2 (3.7 times the level of the previous year), and during the same period supply volume (970,000m2) exceeded absorption capacity, raising the vacancy rate at the end of 2012 to 6.5% with 0.8 point increase from the previous year. On the other hand, the amount of absorption capacity for the other 20 wards was 610,000m2 (87% of the previous year). Again, the supply volume (780,000m2) exceeded absorption capacity as was the case with the Central 3 Wards, raising the vacancy rate at the end of 2012 to 9.3%, a 0.9 point increase from the previous year. If we compare the first half of 2012 with the second half, absorption capacity fell below supply volume in both the Central 3 Wards and in the other 20 wards in the first half of 2012, and absorption capacity exceeded the supply volume in the second half, in all 23 wards. Therefore, the vacancy rate increased in the first half and decreased in the second half, in all 23 wards. In the first half of 2013, absorption capacity for the 3 wards was 360,000m2 (109% of the preceding 6 months) which was approximately the same level as the supply volume (390,000m2). Consequently, the vacancy rate at the end of June, 2013 turned out relatively similar to the end of 2012 at 6.6%. On the other hand, absorption capacity (230,000m2; 135% of the preceding 6 months) for the other 20 wards exceeded the supply volume (30,000m2), resulting in a decline in the vacancy rate at the end of 2012 of 1.6 points to 7.7%. For the other 20 wards, although the large amount of supply (780,000m2) in 2012 caused a rise in the vacancy rate, occupancy in the newly built offices caused a decline in the vacancy rate in the first half of 2013. Nevertheless, the vacancy rate in the other 20 wards remains somewhat higher than that of the 3 wards. (Figure 12)

【Figure 12: 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 Vacancy Rate (All Wards)

Central 3 Wards new demand Other 20 Wards new demand Other 20 Wards vacancy rate

(10,000m2)

9.3 9.3 10.3 8.4 （%） 8.4 8.0 7.7 240 7.8 7.8 （%） 6.9 （%） 6.9 8.4 6.4 6.3 7.0（%） 220 6.1 （%） 6.9 5.6 6.5 6.5 6.6（%） 5.3 5.7 200 4.2 5.7 4.0 5.9 3.3 3.2 3.8 5.0 4.2 3.2 180 2.8 3.3 2.5 2.5 2.5 1.8 160

140 54 78 25 49 120 61 33 74 30 29 43 100

81 80 8 21 44 49 19 60 117 21 70 105 103 90 96 23 88 85 78 17 3 40 78 69 5 65 68 5 50 44 45 39 36 37 20 29 35 29 33 36 21

0 －4

－20 2004 2005 2006 2007 2008 2009 2010 2011 2012 1st half '12 2nd half '12 1st half '13

‒ 8 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

2-2 Future Demand Trends

○ 23% indicated plans to lease new office space, which is a 1 point increase from the preceding year, exceeding 20% for the 4th consecutive year. ○ When we asked about planned space expansion or reduction, those indicating plans to expand increased (50%→54%) and those with plans to reduce space declined (22%→17%).

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” (executed in November, 2012) conducted annually by Mori Building Co., Ltd. since 2003. The percentage that indicated an intent to lease new office space in the survey increased 1 point from the level recorded by the previous survey which was executed in November 2011, and remained above 20% for the 4th consecutive year (Figure 13). When examined by company demographics (Industry/Japanese or Foreign), “Financial/Insurance” (20%) dropped by 6 points compared to the level recorded in the previous survey, whereas “Manufacturing” (19%) increased by 4 points, and “Foreign” (26%) dropped by 2 points, with “Japanese” (22%) increasing by 2 points (Figure 14). In the case of the timing of the planned lease of new office space, “within 1 year” (31%) dropped by 7 points whereas “after 3 years” (47%) increased by 8 points compared with the previous year. The increase in “after 3 years” is caused by 49 more answers (28% increase) to this category compared to last year. (Figure 15) When asked about planned space expansion or reduction, those indicating plans to expand (54%) increased by 4 points whereas those with plans to reduce space (17%) declined by 5 points (Figure 16).

【Figure 13: “Do you have plans to lease new office space?”】 【Figure 14: Breakdown by Company Demographics】 0 20 40 60 80 100 (%) 〈2011〉 0 20 40 60 80 100(%) 2003 21%（365） 79%（1412） Financial/ 26%（47） 74%（133） 2004 18%（345） 82%（1526） insurance Non- manufacturing 24%（320） 76%（1012） 2005 16%（340） 84%（1759） Manufacturing 15%（81） 85%（457）

2006 19%（321） 81%（1354） Japanese 20%（330） 80%（1320） 2007 24%（339） 76%（1102） Foreign 28%（103） 72%（265） “Yes, we have plans” “No plans” 2008 13%（176） 87%（1190）

2009 21%（411） 79%（1475） 〈2012〉 0 20 40 60 80 100(%) 2010 23%（443） 77%（1517） Financial/ 20%（34） 80%（135） insurance 2011 22%（445） 78%（1605） Non- manufacturing 24%（340） 76%（1061） 2012 23%（478） 77%（1633） Manufacturing 19%（104） 81%（437） “Yes, we have plans” “No plans” Japanese 22%（385） 78%（1341）

Foreign 26%（93） 74%（270）

“Yes, we have plans” “No plans” 【Figure 15: Timing of Planned Lease of New Office Space】 0 20 40 60 80 100 (%)

2003 43%（157） 21%（77） 36%（131） 【Figure 16: Planned Space Expansion versus Reduction】

2004 35%（116） 24%（79） 41%（135） 0 20 40 60 80 100 (%) （万） 250 2005 36%（117） 24%（78） 41%（130） その他20区 2009 48%（197） 26%（107） 26%（107） 2006 36%（111） 28%（86） 36%（111） 200 35 都心3区 2007 24%（80） 21%（70） 55%（185） 2010 53%（235） 22%（97） 25%（111） '02～'11年都心3区 '12～'16年都心3区 平均供給78万㎡/年 150 78 平均供給66万㎡/年 2008 40%（80） 27%（46） 33%（57） 2011 50%（222） 22%（99） 28%（120） 49 2009 38%（150） 23%（91） 39%（161） 29 100 58 181 33 54%（255） 17%（82） 29%（137） 2010 37%（156） 21%（91） 42%（185） 2012 21 13 23 8 49 81 3 2011 38%（167） 23%（102） 39%（173） Expansion Reduction No 105 21 103 change 50 88 90 66 69 65 74 67 44 54 2012 31%（148） 21%（101） 47%（222） 36 36 34 within 1 year within after 0 2 years 2 years 2002年 2003年 2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年

‒ 9 ‒ Detailed Market Trend Survey (2013)

1-1 General Trends in Supply Volume

＜Tokyo’s 23 Wards＞ ○ Annual supply in Tokyo’s 23 Wards over the next 5 years will average 930,000m2/year, which is below the past average (1,050,000m2/year). ○ 70% of total supply volume for 2013 (580,000m2) was completed in the first half of 2013. ○ Annual supply for 2017 will reach 1,280,000m2 (122% of the past average), overtaking the average.

The large-scale office building supply volume in Tokyo’s 23 wards is forecast to average 930,000m2 over the next 5 years (2013-2017), falling below the past average of 1,050,000m2/year (Figure 1). Although the supply volume in 2013 is at a lower level, reaching only 33% of last year (1,750,000m2) and only 55% of past average (1,050,000m2), the 4 years from 2014 are forecast to be have an average supply of 1,010,000m2, which is relatively similar to the past average. Also, because 70% of total supply volume for 2013 (580,000m2) was supplied in the first half of 2013, the remaining new supply is likely to have limited effect on the market in the second half of 2013. Supply volume for the 2014-2017 period will be more than the amount predicted at the end of 2012 due to recently announced plans and formalization of previously tentative plans. Although the supply volume for 2014-2015 (around 1,000,000m2) will remain nearly the same as the past average, it is forecast to exceed the average at 1,280,000m2 in 2017, after dropping to 720,000m2 in 2016.

Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

○ 77% of those with plans to lease new floor space desire to locate in the Central 3 Wards.

Those with plans to lease new office space desire a location in the Central 3 Wards remained 77% since the level recorded in the last survey. When separated into more specific areas, Shinjuku and Shibuya topped the ranking with 16% each, followed by Marunouchi (15%), Nihonbashi (15%), Otemachi (14%) and Toranomon (14%). Areas that gained 3 point increase from the last survey are Shinjuku (13%→16%), Toranomon (11%→14%), Shinagawa (10%→13%) and Yaesu (5%→8%). (Figure 18)

【Figure 17: Desired Locations for Planned Leasing of New Office Space (Central 3 Wards vs. Other 20 Wards)】 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%

Central 3 Wards Other 20 Wards

2010 2011 【Figure 18: Desired Locations for Planned Leasing of New Office Space】 2012

(%) 18 16 1616 1616 16 16 15 15 15 14 14 14 14 14 1313 13 13 13 13 12 12 12 11 11 11 11 10 10 10 10 10 10 10 9 9 9 9 8 8 8 8 8 8 8 88 8 8 7 7 7 7 7 7 7 7 7 7 6 6 6 6 66 6 6 6 6 6 6 5 5 5 5 5 5 5 55 5 4 4 4 4 4 333 222 2 22 2 111 1 1 1 1 0 00 0 Yaesu Nihonbashi Kyobashi Ginza Harumi Marunouchi Otemachi Yurakucho Uchisaiwaicho Kojimachi/ Bancho Hirakawacho/ Kioicho Iidabashi Akihabara Shinbashi Toranomon Kamiyacho Akasaka Roppongi Aoyama Hamamatsucho Tamachi Daiba/Aomi Shinagawa (around station) Ariake Tennozu/ Shinagawa seaside Osaki Shibuya Ebisu Shinjuku Yotsuya Toyosu

（万） 250 その他20区

200 35 都心3区 '02～'11年都心3区 '12～'16年都心3区 平均供給78万㎡/年 150 78 平均供給66万㎡/年 49 ※This survey question is multiple answer. Accordingly if all applicable samples indicated an area, the percentage would be 100. 29 100 58 181 33 21 13 23 8 49 81 105 21 103 3 50 88 90 66 69 65 74 67 44 54 36 36 34 ‒ 10 ‒ 0 2002年 2003年 2004年 2005年 2006年 2007年 2008年 2009年 2010年 2011年 2012年 2013年 2014年 2015年 2016年 Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

○ The score for “Anti-seismic Design”, rising from 35% in the last survey to 40%, ranked top for the 3rd straight year of increase. ○ “Lower Rent/Lower Priced Building”, decreasing from 38% in last survey to 36%, ranks second for the second straight year of decrease.

The score for “Anti-seismic Design” (40%) ranks top with a 5 point increase from the last survey. “Disaster Prevention Systems/Backup Systems” (20%) also increased by 1 point, showing that concern for anti-seismic/disaster prevention features in the building still remain high after the Great East Earthquake nearly two years ago. In second place is “Lower Rent/Lower Priced Building” (36%) which saw a decrease for the second straight year, followed by ”For establishment of a new department/for expanded business/for accommodation of employee increase” (34%), “Better Location” (30%), “More Floorspace per Floor” (27%), “Higher Grade Facilities” (24%) and “Superior Security (anti-crime)” (21%), which all received lower scores than in the last survey, but kept the same rank. (Figure 19)

【Figure 19: Reasons for Planned Lease of New Office Space】 (%) 50 43 2008 40 40 40 38 2009 36 36 35 34 34 35 2010 32 31 30 30 2011 30 2828 28 27 2726 2012 25 24 22 24 20 21 21 20 21 20 20 19 19 19 19 15 15 16 14 13 13 11 1111 1212 12 11 12 10 10 9 9 9 9 10 8 8 8 8 9 8 56 6 5 56 4 4 3 3 3 222 1111 22112 0 0 0 Lower rent/lower priced building for accommodation of employee increase For establishment of a new department/for expanded business/ Superior security (anti-crime) (in the building/provided by building management company) Disaster prevention systems/Backup systems Location that enhances corporate status For consolidation of offices Eco-conscious/environment-friendly building Current building is to be redeveloped For pursuit of a new business project (in the case of leasing) Building owner enjoys a high degree of trust Necessity to establish an annex/separate office As a temporary move For establishment of a new branch office/business office (building with superior seismic performance) Anti-seismic design Better location More floorspace per floor Higher grade facilities

※This survey question is multiple answer. Accordingly if all applicable samples indicated an area, the percentage would be 100.

‒ 11 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

3-1 Future Market Trends

○2013 supply volume (580,000m2) has fallen to a mere 30% of last year (1,750,000m2). ○ Although fully 70% the total year’s supply volume came in the first half of 2013, absorption capacity in the same period exceeded even that amount, resulting in a 7.0% vacancy rate by the end of June, 2013 (roughly the same level as for 2011) with an 0.8 point decrease from that of the end of 2012. ○ In the 23 wards, vacancy rates peak at about 7.8% at the end of 2012 and will subsequently improve to about 7.0% at the end of 2013.

The vacancy rate in Tokyo’s 23 wards at the end of June, 2013 improved to 7.0% as stated in 2-1. It should be noted that the first half of 2013 was characterized by the high percentage of the total year’s supply volume (580,000m2) in the first half: 70% (410,000m2) of the total supply volume for 2013 became available in the first half. However, the absorption capacity for the first half of 2013 reached 590,000m2, which is 1.4 times the amount of supply volume. This is caused by a stimulation of demand caused by the concentration of supply, set against a backdrop of a continuing recovery in business confidence ongoing since early 2013. Regarding future prospects, absorption capacity will continue at the same level as supply volume for the second half of 2013 because the amount of supply is relatively small and we cannot expect demand to be as high in the second half of 2013. The vacancy rate is projected to be relatively flat after the end of June and be 7.0% by the end of 2013. Also, because plans to lease new office space among companies remain solid and the absorption capacity is expected to grow, the vacancy rate at the end of 2014 is predicted to be 6.7% (Figure 20). However, since a stable amount of supply is expected to last for 4 years after 2014, it is necessary to keep close observation for supply trend, especially after 2017.

【Figure 20: Future Large-scale Office Building Supply, New Demand (Absorption Capacity) and Vacancy Rate Trends】

8.8 8.1 7.8 Vacancy Rate (%) 7.0 7.0 6.7 6.9 6.7 5.9 6.3 4.9 5.3 (10,000m2) 3.8 3.4 3.1 3.2 250 2.7 2.4 2.8 2.5 3.6

1.2 223 216

200 183 182 Supply Volume 175

157 New Demand (Absorption Capacity) 154 150 142 130 139 123 125 122 119 121 119 115 117

99 93 92 91 91 100 91 88 91 86 80 77 85 75 74 72 65 69 59 58 54 44 48 50 41 36 34 31

Projected Values

0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '13 '14 (1st half )

‒ 12 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

○ The vacancy rate for the Central 3 Wards for the end of June, 2013 (6.6%) remained relatively flat compared to that at the end of 2012 (6.5%). On the other hand, the vacancy rate for the other 20 wards at the end of June, 2013 (7.7%) decreased by 1.6 points from that at the end of 2012 (9.3%).

Because plans to lease new office space are concentrated in the Central 3 Wards, it is projected that the amount of absorption capacity will correspond to the supply volume for the entire year of 2013, resulting in a projected vacancy rate of 6.5% at the end of 2013 and 5.9% at the end of 2014. On the other hand, new supply volume in the other 20 wards of Tokyo will be relatively low (10,000m2 in the second half of 2013, and 160,000m2 in 2014). Combined with lackluster new demand in these wards, absorption capacity will stagnate and the vacancy rate is projected to be relatively flat.

【Figure 21: Supply, New Demand (Absorption Capacity) and Vacancy Rate Trends by Area】 9.3

8.4 7.8 7.9 8.0 7.7 7.7 Vacancy Rate (%) 7.0 7.0 6.9 6.5 6.7 6.4 6.1 6.3 5.7 6.6 6.5 5.9 5.3 5.9 5.0 5.6 4.2 4.2 4.0 Legend 3.3 3.2 3.2 3.8 2.8 2.5 3.3 Supply (Central 3 Wards) Vacancy Rate (Central 3 Wards) 2.5 2.5 Supply (Other 20 Wards) Vacancy Rate (All Wards) 1.8 New Demand (Central 3 Wards) Vacancy Rate (Other 20 Wards)

New Demand (Other 20 Wards)

(10,000m2) 220

180 175 Supply Volume 154 157 142 139 140 New Demand (Absorption Capacity) 121 122 78 25 115 49 54 119 118

61 33 29 91 91 93 100 30 43 86 85 77 13 69 79 16 65 21 81 8 59 58 23 60 117 105 49 19 21 70 42 4 103 31 97 23 80 88 85 90 34 78 75 78 3 69 65 54 56 5 50 20 44 35 36 37 39 36 Projected Values 29 21 0 -4 -20 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 2014 1st Half

On September 8, 2013, Tokyo was selected as the venue for the 2020 Olympics and Paralympics. This together with the growth strategy of the Abe Administration will benefit the economy as a whole over the next 7 years. It is also expected that the office market in Tokyo will be positively impacted by this economic growth.

‒ 13 ‒ Survey of the Large-scale Office Building Market in Tokyo’s 23 Wards

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  tsubo 2013

Nihonbashi Astellas Mitsui Building 27,450 8,304 Mitsui Fudosan Co., Ltd., Lotus Estate Nihonbashi Honcho, Chuo-ku

JR Kanda Manseibashi Building 28,452 8,607 East Japan Railway Company Kanda-Sudacho, Chiyoda-ku

Akasaka Center Building 39,770 12,030 Kanden Fudosan Co., Ltd. Akasaka, Minato-ku

Hulic Building 19,636 5,940 Hulic Co., Ltd. Asakusabashi, Taito-ku

GINZA KABUKIZA 94,097 28,464 Shochiku Group Ginza, Chuo-ku Awajicho 2-chome West District Redevelopment Association WATERRAS TOWER 129,223 39,090 Kanda-Awajicho, Chiyoda-ku (Yasuda Real Estate Co., Ltd., etc.) Kyobashi 3-chome Development S.P.C. (Tokyo Tatemono Co., Ltd. etc.), Tokyo Square Garden 117,461 35,532 Kyobashi, Chuo-ku The Dai-ichi Life Insurance Company, Limited., etc. Nidec Copal Main Office Building 11,632 3,519 Nidec Copal Corporation Shimura, Itabashi-ku

Ochanomizu Sola City 102,179 30,909 Development S.P.C. (Taisei Corporation, etc.) Kanda-Surugadai, Chiyoda-ku

Kanda-Nishikicho Trad Square 18,300 5,536 Yasuda Real Estate Co.,Ltd. Kanda-Nishikicho, Chiyoda-ku

Sumitomo Shoji Kyobashi Building 11,188 3,384 Sumitomo Corporation Kyobashi, Chuo-ku

ARK Hills South Tower 55,033 16,647 Mori Building Co., Ltd. Roppongi, Minato-ku

Nittochi Toranomon Building 11,508 3,481 Nippon Tochi-Tatemono Co.,Ltd. Toranomon, Minato-ku

JR Otsuka Station South Exit Building 23,100 6,988 East Japan Railway Company Minami-Otsuka, Toshima-ku

The Yomiuri Shimbun Reconstruction Project 89,409 27,046 The Yomiuri Shimbun Otemachi, Chiyoda-ku 2014

Muromachi East Area Development Project (Block 2-3) 63,000 19,058 Mitsui Fudosan Co., Ltd. Muromachi Nihonbashi, Chuo-ku

Muromachi East Area Development Project (Block 1-5) 29,120 8,809 Mitsui Fudosan Co., Ltd. Muromachi Nihonbashi, Chuo-ku Osaki Station West Exit South District Redevelopment Assiciation Osaki Wiz Tower 58,457 17,683 Osaki, Shinagawa-ku (Nippon Tochi-Tatemono Co., Ltd. etc) Front Place Nihonbashi 11,838 3,581 Mitsubishi Estate Company, Limited Nihonbashi, Chuo-ku

Kyobashi Trust Tower 52,000 15,730 Mori Trust Co., Ltd. Kyobashi, Chuo-ku

Otemachi Tower 198,154 59,942 Tokyo Prime Stage (Tokyo Tatemono Co., Ltd., etc.) Otemachi, Chiyoda-ku

Nishi-Shimbashi 1-chome Project 54,943 16,620 Nishi-Shimbashi Development S.P.C. (Mitsubishi Estate Company, Limited, etc.) Nishi-Shimbashi, Minato-ku

Iidabashi Grand Bloom 193,680 58,588 Mitsui Fudosan Co., Ltd. Fujimi, Chiyoda-ku

Shin Ebisu Subaru Building 25,100 7,593 Subaru Kosan Co., Ltd. Ebisu, Shibuya-ku

Nihon Seimei Otemachi Building (Reconstruction of AIG Building) 55,800 16,880 Nippon Life Insurance Company Marunouchi, Chiyoda-ku IHI Corporation, Toyosu 3-chome Development S.P.C. Toyosu Project (Block 3-2) 101,376 30,666 Toyosu, Koto-ku (Mitsubishi Estate Company, Limited, etc.) Nihonbashi Dia Building 30,013 9,079 Mitsubishi Logistics Corporation Nihonbashi, Chuo-ku

Toranomon Hills 244,305 73,902 Tokyo Metropolitan Government (Designated Builder: Mori Building Co., Ltd.) Toranomon, Minato-ku

Onward HD Main Office Reconstruction Project 18,594 5,625 Onward Holdings Co., Ltd. Nihonbashi, Chuo-ku

Seiwa Ebisu Building Recontruction Project 15,510 4,692 Sapporo Holdings Limited Ebisu, Shibuya-ku

Nihonbashi 1-chome Project 24,100 7,290 Tokyo Tatemono Co., Ltd. Nihonbashi, Chuo-ku

Hirakawacho Project 12,210 3,694 Sumitomo Realty & Development Co., Ltd. Hirakawacho, Chiyoda-ku

YKK Office Building Reconstruction Project 21,050 6,368 YKK Fudosan Co., Ltd. Kanda-Izumicho, Chiyoda-ku 2015

Keio Sasazuka Project 38,449 11,631 Keio Juuki Seibi Co., Ltd. Sasazuka, Shibuya-ku

Shinagawa Link Tope 205,785 62,250 NTT Urban Development Corporation Konan, Minato-ku

Sumitomo Mitsui Bank Otemachi Head Office Building Rebuilding Project 89,116 26,958 Sumitomo Mitsui Banking Corporation Marunouchi, Chiyoda-ku

Nihonbashi 2-Chome Area North Block Project 138,000 41,745 Sumitomo Realty & Development Co., Ltd. Nihonbashi, Chuo-ku

New Kyobashi MID Building Project 11,807 3,572 MID Urban Development Co,. Ltd. Kyobashi, Chuo-ku

Shiba-Koen 1-chome Project 12,930 3,911 Gassan Properties S.P.C. (Mitsui Fudosan Co., Ltd.) Shiba-Koen, Minato-ku

Kanda-Nishikicho 3-chome Joint Reconstruction Project 52,883 15,997 Sumitomo Corporation Kanda-Nishikicho, Chiyoda-ku

N Project 29,995 9,073 Nissei Real Estate Co., Ltd. Nihonbashi, Chuo-ku

Shiba (Fudanotsuji) Project 25,000 7,563 Sumitomo Realty & Development Co., Ltd. Shiba, Minato-ku

New Tekko Building 117,000 35,393 Tekko Building Co., Ltd. Marunouchi, Chiyoda-ku

Kita-Shinagawa 5-Chome Area 1 Redevelopment Project (A1 Building) 91,957 27,817 Kita-Shinagawa 5-chome Redevelopment Association (Mitsui Fudosan Co., Ltd., etc.) Kita-Shinagawa, Shinagawa-ku

Kita-Shinagawa 5-Chome Area 1 Redevelopment Project (C1 Building) 44,769 13,543 Kita-Shinagawa 5-chome Redevelopment Association (Mitsui Fudosan Co., Ltd., etc.) Kita-Shinagawa, Shinagawa-ku

Futako-Tamagawa East Redevelopment Project II (Area-A) 156,422 47,318 Futako-Tamagawa East Redevelopment Association (Tokyu Corporation, etc.) Tamagawa, Setagaya-ku

Chuo Tochi Yaesu 1-chome Project 15,199 4,598 Chuo Tochi Co., Ltd. Yaesu, Chuo-ku

Sumitomo Fudosan Nibancho Project 20,000 6,050 Sumitomo Realty & Development Co., Ltd. Nibancho, Chiyoda-ku

Otemachi 1-1 Project (Building-A) 108,351 32,776 Mitsubishi Estate Company, Limited, JX Holdings, Inc., Otemachi Development S.P.C. Otemachi, Chiyoda-ku

East 2-chome Project 40,660 12,300 Shimizu Corporation, Naeba Properties S.P.C. Higashi-Ueno, Taito-ku 2016

New Construction Project at Yotsuya Campus 44,700 13,522 Sophia University Kioicho, Chiyodaku

Redevelopment Project at the site of former Miyashitacho Apartment 36,000 10,890 Tokyu Corporation, etc. Shibuya, Shibuya-ku

Shinjuku Station New South Entrance Building 111,000 33,578 East Japan Railway Company Shinjuku, Shinjuku-ku Roppongi 3-chome East Redevelopment Association Roppongi 3-chome East District Redelopment Project 201,815 61,049 Roppongi, Minato-ku (Sumitomo Realty & Development Co., Ltd., etc.) Kioicho Project (Reconstruction of Akasaka Prince Hotel) 227,200 68,728 Seibu Properties Inc. Kioicho, Chiyoda-ku

Okubo 3-Chome West District Development Project (A-1 Building) 142,700 43,167 Sumitomo Realty & Development Co., Ltd. Okubo, Shinjuku-ku Ginza 6-chome District 10 Redevelopment Association Ginza 6-chome District 10 Redevelopment Project (Reconstruction of Ginza Matsuzakaya) 147,600 44,649 Ginza, Chuo-ku (J. Front Retailing Co., Ltd., Mori Building Co., Ltd., etc.) 2017 Toyosu 2-chome Redevelopment Project (2-1 Block) 243,163 73,557 Mitsui Fudosan Co., Ltd. Toyosu, Koto-ku

Hamamatsucho 2-chome District 4 Development Project (A Block) 270,000 81,675 World Trade Center Building, Inc, Tokyo Monorail Company, Limited, East Japan Railway Company Hamamatsucho, Minato-ku

Hamamatsucho 2-chome District 4 Development Project (B Block) 99,000 29,948 Kokusai Kogyo Co., Ltd. Hamamatsucho, Minato-ku

Nishi-Shinagawa 1-chome Redevelopment Project 220,000 66,550 Sumitomo Realty & Development Co., Ltd. Nishi-Shinagawa, Shinagawa-ku

Akasaka 1-chome Redevelopment Project 175,140 52,980 Akasaka 1-chome Redevelopment Association (Nippon Steel Kowa Real Estate Co., Ltd., etc.) Akasaka, Minato-ku

Otemachi 1-1 Project (Building B) 149,037 45,084 Mitsubishi Estate Company, Limited Otemachi, Chiyoda-ku

Seibu HD Former Office Building Reconstruction Project 23,700 7,169 Seibu Holdings Inc. Minami-Ikebukuro, Toshima-ku

※ Total floor area includes residential and commercial area. ※ Projects are excluded from this list if discrepancies are found between publicly available information and the results of Mori Building’s investigation. ※ The supply volume figure provided by Mori Building is calculated from the "genuine office floor area", and does not agree with the total floor area figures shown in this chart. ※ In the column “Lead Project Developer(s)”, the companies and organization in brackets ( ) are major enterprises that are participating as association members, investors in the special purpose company (S.P.C.), specified constructor, partner or joint venture party.

‒ 14 ‒