Section 4  Trends in Office Locations

(Trends in the Floorspace of Offices, etc.)

In this sub-section, regions are categorized into "Tokyo metropolitan area", "Osaka metropolitan area", "Nagoya metropolitan area" and "Five prefecture areas where major local center cities are located"
"Tokyo metropolitan area" includes Saitama, Chiba, Tokyo and Kanagawa Prefecture.
"Osaka metropolitan area" includes Kyoto, Osaka, Hyogo and Nara Prefecture.
"Nagoya metropolitan area" includes Gifu, Aichi and Mie Prefecture.
"Five prefecture areas where major local center cities are located" includes Hokkaido, Miyagi, Hiroshima, Kagawa and Fukuoka Prefecture
Office floorspace, etc. (floor space of offices, banks and retail in wood buildings together with floor space of offices, retail uses, department stores and banks in non-wood buildings) in 2001 totaled 764.344 million sqm (8,227.4 million sqf), an increase of 2.2% on the previous year (see Chart 2-4-1)


Chart 2-4-1  Trends in Office Floorspace
Chart
Source:Calculated by Ministry of Land, Infrastructure and Transport from "Basic Research into the Price of Fixed Assets" by Ministry of Public Management, Home Affairs, Posts and Telecommunications
Note1:"Five prefecture areas where major local center cities are located" includes Hokkaido, Miyagi, Hiroshima, Kagawa and Fukuoka Prefecture
Note2:The Tokyo metropolitan area includes Saitama, Chiba, Tokyo and Kanagawa Prefecture.
Note3:The Osaka metropolitan area includes Kyoto, Osaka, Hyogo and Nara Prefecture.
Note4:The Nagoya metropolitan area includes Gifu, Aichi and Mie Prefecture.
Note5:Figures in parentheses are annual change ratio (%)
Note6:Figures are as of 1 January every year.


(Trends in Office Construction)
In 2000, newly constructed floorspace of offices (Places where desk work and similar work is conducted.) in Japan totaled 8.172 million sqm (87.963 million sqf), a decrease of 7.2% on the previous year (see Chart 2-4-2).


Chart 2-4-2  Trends of Newly Constructed Office Floorspace
Chart
Source:"Annual Statistics of Construction" by Ministry of Land, Infrastructure and Transport
Note1:"Five prefecture areas where major local center cities are located" includes Hokkaido, Miyagi, Hiroshima, Kagawa and Fukuoka Prefecture
Note2:The Tokyo metropolitan area includes Saitama, Chiba, Tokyo and Kanagawa Prefecture.
Note3:The Osaka metropolitan area includes Kyoto, Osaka, Hyogo and Nara Prefecture.
Note4:The Nagoya metropolitan area includes Gifu, Aichi and Mie Prefecture.
Note5:Figures in parentheses are annual change ratio (%)


(Trends in the Office Market)

In this sub-section, the following areas are studied:
"Three metropolitan areas" composed of Tokyo (23 wards area), Osaka and Nagoya Major Local Cities; Sapporo, Sendai, Hiroshima, Takamatsu and Fukuoka
In relation to trends in the office market in the three metropolitan areas in 2001 (based on "Office Market Report" by Ikoma-CB Richard Ellis), in Tokyo (23 wards area) the vacancy ratio was 4.3%, in Osaka 9.4% and in Nagoya 6.3%. Average office rents (asking rents) were JPY 14,180 /tsubo/month in Tokyo (23 wards area), JPY 10,290 /tsubo/month in Osaka and JPY 10,110 /tsubo/month 2 in Nagoya (see Chart 2-4-3).
(Note: 1tsubo = 3.3 sqm= 35.58 sqf)

2US$ = JPY (Japanese Yen) 121.8 (as of 30 September 2002).

Chart 2-4-3  Trends in Vacancy Ratios and the Rents of Office Buildings in Three Metropolitan Areas
(1)Vacancy Ratios
Chart

(2)Rents
Chart
Source:"Market Trends in Office Leasing" by Ikoma CB Richard Ellis.
Note1:Covered spaces: the major use of which was offices, in respect of which tenants were in demand
Note2:Vacancy ratios are calculated from the proportion of vacant space relative to the total floor space of buildings within the area covered, as of December each year from 1992 to 2001.
Note3:Rents are the average asking rents in each year from January to December between 1992 and 1999 and from October to December in 2000 and 2001


In major local cities, vacancy ratios were 8.3% in Sapporo, 10.7% in Sendai, 9.3% in Hiroshima, 9.7% in Takamatsu and 8.6% in Fukuoka. (see Chart 2-4-4). Average office rents (asking rents per tsubo per month) were JPY 9,890 in Sapporo, JPY 10,040 in Sendai, JPY 10460 in Hiroshima, JPY 9,760 in Takamatsu and JPY 10,130 in Fukuoka.


Chart 2-4-4  Trends in Vacancy Ratios of Office Buildings in Major Local Cities
(1)Vacancy Ratios
Chart

(2)Rents
Chart
Source:"Market Trends in Office Leasing" by Ikoma CB Richard Ellis.
Note1:Covered spaces: the major use of which was offices, in respect of which tenants were in demand
Note2:Figures are as of December in 1992 to 2001. For Sapporo, Sendai, Hiroshima and Takamatsu, figures are as of June in 1992 to 1995.
Note3:Rents are the average asking rents in each year from January to December between 1992 and 1999 and from October to December in 2000 and 2001


Chart 2-4-5  Vacancy Ratios of A class Buildings
Chart
Source:"Office Market Report" By Ikoma CB Richard Ellis
Note:"A Class Buildings" are selected by Ikoma CB Richard Ellis, in order to survey specific market trends, as follows:

Tokyo (23 wards area)(surveyed office buildings: 63)
Location: Central 5 Wards (Chiyoda, Chuo, Minato, Shinjuku and Shibuya); areas considered mature office districts; and other highly potential business districts like Shinagawa
Total Floor Area:10,000 tsubo or more
Area for lease:per floor 200 tsubo or more (Net rentable area)
Age of building:Built after 1982 (Subject to new earthquake-resistant building codes)
Ceiling height:2.6 m or higher
Air conditioning:Controllable by floor, or as separate unit by tenant
Wiring:3-way or raised floor
Electric capacity:30 VA/m2 or higher
Access:24 hours available

Osaka(surveyed office buildings: 31)
Location:Chuo, Kita, Nishi and Yodogawa wards; areas considered mature office districts
Distance from Station 5 minutes walk
Total Floor Area:5,000 tsubo or more
Area for lease:per floor 200 tsubo or more (Net rentable area)
Age of building:Built after 1982 (Subject to new earthquake-resistant building codes)
Ceiling height:2.6 m or higher
Air conditioning:Controllable by floor, or as separate unit by tenant
Wiring:3-way or raised floor
Access:24 hours available


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