Office Building Supply in Tokyo Expected to Drop to New LowEconomy Society
A survey on the supply of office space in large office buildings in the 23 municipalities of central Tokyo, conducted by the real estate developer Mori Trust, found that 1.85 million square meters of floor space was supplied in 2020. This was the second highest total over the past 20 years and considerably greater than the average of 1.16 million square meters over the same period. However, the number is expected to plummet to 610,000 in 2021 and decline further to 510,000 in 2022.
The majority of office space is concentrated in the central municipalities of Chiyoda, Chūō, and Minato. Total supply to these three municipalities for 2021–25 will account for 80% of the total, with more than 50% in Minato alone. Within Minato, the largest supply is to the adjacent Toranomon and Shinbashi districts.
The supply of office space in medium-scale office buildings fell to 80,000 square meters in 2020, and is projected to decrease further to 69,000 in 2021. Supply is expected to stay below the 10-year average of 113,000 square meters. By municipality, Minato accounted for 30% of supply in 2020–21.
(Originally published in Japanese. Banner photo © Pixta.)