report of the results of the 2013 survey of oﬃce needs in ... · response rate： 2149（21.5%）...

Report of the Results of the 2013 Survey of Office Needs in Tokyo’s 23 Wards

Mori Building Co., Ltd. conducted the 2013 Survey of Office Needs in Tokyo’s 23 Wards in order to better understand the future of the office building market in the 23 wards of Tokyo. Survey questionnaire forms regarding new demand for office space were mailed to companies that are headquartered in the 23 wards and are ranked in the top 10,000 in capitalization. We have compiled the questionnaire results, and we would like to share some of our findings and insights in the following report.

■ Survey FrameworkResearch Period： Early October～Early November 2013Methodology： Survey questionnaire forms were mailed to companies that are headquartered

in the 23 wards and are ranked in the top 10,000 in capitalization.Response Rate： 2149（21.5%）

Reference: Historic effective response totals and response rates for 2009～2012

Research Timing

Response Rate

2009/11 2010/11 2011/11 2012/11

1,917(19.2%) 1,976(19.8%) 2,060(20.6%) 2,118(21.2%)

December 18, 2013

※Results will be reported to participating firms separately.

Intent to lease new office space is changing steadily and the top reason for leasing new office space was, for the first time in 5 years, “To Establish a New Department/To Expand Business/To Accommodate an Increase in Employees” followed by “Better Location”. On the other hand, “Lower Rent/Lower-Priced Building” dropped in the ranking for a second consecutive year, resulting in a 4th place rank. Also noted was a positive trend being shown in reasons for office relocation, compounded by the fact that those planning to expand their office premises increased for the second consecutive year and those planning to shrink their office premises decreased for the second consecutive year.

<Tendencies of Companies Planning for New Premises>● For the first time in five years, 20% indicated plans to lease new premises.● Those indicating expansion of leased space increased for the second consecutive year (54%→56%) and those who indicated reducing space decreased for the second consecutive year (17%→16%).● “To Establish a New Department/To Expand Business/To Accommodate an Increase in Employees” (34%→40%) was the top reason for relocation for the first time since 2008, followed by “Better Location” (32%). On the other hand, “Lower Rent/Lower-priced Building” (36%→31%) got lower ratings, dropping for the second consecutive year, resulting in a 4th place rank.● The 3rd reason for relocation was “Anti-seismic Design”, which attracted high interest in BCP-related matters.

＜Effect on Business Performance due to the 2020 Tokyo Olympics＞● 37% of firms expect a positive effect on business performance due to the 2020 Tokyo Olympics.

■ Expansion was cited as the top reason for the first time in 5 years, indicating an encouraging trend in the reasons for plans to lease new office space.

For more information & for inquiries, please contact:Mr. Jungo Nishio, Ms. Tomoko Fukamachi, Mr. Susumu Miura 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

0 20 40 60 80 100 (%)

33%（140）33%（140） 21%（88）21%（88） 46%（197）46%（197）

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

1 Future Plans to Lease New Office Space

Although the percentage of indication to “Plan to Lease New Office Space” decreased by 3 points compared to that of the previous survey conducted in November 2012, it has exceeded 20% for 5 consecutive years since 2009 (Figure 1). When examined by corporate demographics, “Manufacturing” (19%→15%) and “Non-Manufacturing” (24%→22%) have decreased, whereas “Financial/Insurance” (20%→21%) has increased continually since last year. The ratio of Foreign Companies (26%→27%) exceeds Japanese Companies (22%→19%) by 8 points (Figure 2).Regarding "Plans for Expansion vs. Reduction of Space", while those indicating "Expansion" increased for the 2nd consecutive year (54%→56%), "Reduction" has decreased for 2 consecutive years (17%→16%) (Figure 3).For “Timing of Planned Lease of New Space”, those indicating “Within 1 year” increased from the last survey (31%→33%). Those indicating “Longer” decreased (47%→46%) compared to last year (Figure 4).

【Figure 2 : Intent to Lease New Office Space by Corporate Demographics】

〈2013〉

〈2012〉

○ 20% indicated a “Plan to Lease New Office Space”- this was the 5th consecutive year for this ratio being more than 20%.

○ Regarding “Plans for Expansion vs. Reduction of Space”, those responding “Expansion” (54%→56%) increased for the 2nd consecutive year while those indicating a planned “Reduction” (17%→16%) decreased for the 2nd consecutive year.


【Figure 1 : Plan to Lease New Office Space】(%)

【Figure 4 : Timing of Planned Lease of New Office Space】【Figure 3 : Plans for Expansion vs. Reduction of Space】

23%（478）23%（478） 77%（1633）77%（1633）

20%（433）20%（433） 80%（1707）80%（1707）

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

21%（365）21%（365） 79%（1412）79%（1412）

18%（345）18%（345） 82%（1526）82%（1526）

16%（340）16%（340） 84%（1759）84%（1759）

19%（321）19%（321） 81%（1354）81%（1354）

24%（339）24%（339） 76%（1102）76%（1102）

13%（176）13%（176） 87%（1190）87%（1190）

21%（411）21%（411） 79%（1475）79%（1475）

23%（443）23%（443） 77%（1517）77%（1517）

22%（445）22%（445） 78%（1605）78%（1605）

0 20 40 60 80 100

Yes, we have plans No plans

(%)

31%（148）31%（148） 21%（101）21%（101） 47%（222）47%（222）

38%（167）38%（167） 23%（102）23%（102） 39%（173）39%（173）

37%（156）37%（156） 21%（91）21%（91） 42%（185）42%（185）

38%（150）38%（150） 23%（91）23%（91） 39%（161）39%（161）

40%（80）40%（80） 27%（46）27%（46） 33%（57）33%（57）

24%（80）24%（80） 21%（70）21%（70） 55%（185）55%（185）

36%（111）36%（111） 28%（86）28%（86） 36%（111）36%（111）

36%（117）36%（117） 24%（78）24%（78） 41%（130）41%（130）

35%（116）35%（116） 24%（79）24%（79） 41%（135）41%（135）

43%（157）43%（157） 21%（77）21%（77） 36%（131）36%（131）

Within 1 year Within 2 years Longer

0 20 40 60 80 100

(%)0 20 40 60 80 100

15%（73） 85%（419）

21%（34） 79%（125）

27%（83） 73%（230）

22%（326） 78%（1163）

19%（345） 81%（1449）

19%（104） 81%（437）

20%（34） 80%（135）

26%（93） 74%（270）

24%（340） 76%（1061）

22%（385） 78%（1341）



48%（197）48%（197） 26%（107）26%（107）

53%（235）53%（235） 25%（111）25%（111）

28%（120）28%（120）

0 20 40 60 80 100 (%)

Expansion No change

2009

2010

2011

2012

2013

50%（222）50%（222）

28%（119）28%（119）56%（241）56%（241）

29%（137）29%（137）54%（255）54%（255）

26%（107）26%（107）

Reduction

17%（82）17%（82）

16%（71）16%（71）

22%（97）22%（97）

22%（99）22%（99）

Financial/Insurance

Non-manufacturing

Manufacturing

Foreign Company

Japanese Company

Financial/Insurance

Non-manufacturing

Manufacturing

Foreign Company

Japanese Company

2 Reasons for Plans to Lease New Office Space


【Figure 5: Reasons for Plans to Lease New Office Space】

【Figure 5-2: Trends in the Reason for Plans to Lease New Office Space】

※ Multiple answers allowed.※ Total number of responding firms is counted as 100.

To Establish a New

Branch Offi

ce /Business O

ffice

(%)

Lower Rent / Low

er-Priced Building

To Establish a New

Departm

ent /To Expand Business /To Accom

modate an Increase in Em

ployees

Anti-seismic D

esign

More Floorspace per Floor

Better Location

Higher G

rade Facilities

Superior Security

Disaster Prevention System

s /Backup System

s

Location That Enhances Corporate Status

To Consolidate Offi

ces

Eco-conscious /Environm

ent-Friendly Building

Current Building is to be Redeveloped

To Pursue a New

Business Project

7777885555

Building Ow

ner Enjoys a High D

egree of Trust(in the case of leasing)

Necessity to Establish Annex /

Separate Offi

ce

As a Temporary M

ove

50

40

30

20

10

0

2009（365）2010（390）2011（398）2012（406）2013（422）

4040

313132323232

2424 2424

11111212

2222

4040434338383636

2121

2828

22222727

1919

272726262323 2020

2424

1515

2121202018181919

101088

1212111116161212

9912121313 1313

994488 88

55668899 99

1212

6699

55 5588 66

33222222 1111111122 221111

28282828

34343636

11111515

40403535

2020

343430303535

As the reason for planning to lease new office space, “To Establish a New Department/To Expand Business/To Accommodate an Increase in Employees” ranked No. 1 (34%→40%). Also, there is a positive trend for the reasons to plan a new lease, and “Better Location” (30%→32%) was one of the top reasons. On the other hand, “Lower Rent/Lower-Priced Buildings” (36%→31%) decreased by 12 points compared to the result 3 years ago, and has dropped in the rankings for 2 consecutive years, resulting in a 4th place rank this year (Figure 5) (Figure 5-2).“Anti-seismic Design” dropped in popularity (40%→32%) but retained the 3rd place rank. “Disaster Prevention Systems/Back-up Systems” (21%) is steadily increasing each year and indicates the robust needs for BCP.

○ “To Establish a New Department/To Expand Business/To Accommodate an Increase in Employees” increased, and ranked as the top reason for the first time in 5 years since 2008. On the other hand, those answering “Lower Rent/Lower-Priced Building” decreased (36%→31%) and ranked 4th.

2121

No.1： To Establish a New Department / To Expand Business / To Accommodate an Increase in EmployeesNo.2： Better Location

No.3： Anti-seismic Design

No.4： Lower Rent / Lower-Priced Building

No.5： More Floorspace per Floor

No.6： Higher Grade Facilities

2009 2010 2011 2012 2013

No. 1

No. 2

No. 3

No. 4

No. 5

No. 6

No. 7

No. 8

No. 9

○ “Anti-seismic Design”, which ranked No. 1 last year, still maintained a high ranking (40%→32%), coming in at 3rd this time.

3 Desired Areas for Planned Lease of New Office Space

【Figure 7: Desired Areas for Planned Lease of New Office Space】


【Figure 6: Desired Areas for Planned Lease of New Office Space】

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0 20 40 60 80 100 (%)

79%79% 21%21%

64%64% 36%36%

61%61% 39%39%

60%60% 40%40%

63%63% 37%37%

64%64% 36%36%

62%62% 38%38%

75%75% 25%25%

81%81% 19%19%

77%77% 23%23%

77%77% 23%23%

Central 3 Wards Other 20 Wards

1616

5555

181614121086420

1212

<Chuo Ward> <Minato Ward> <Reference: Other Wards><Chiyoda Ward>

1515 15151616 1616 16161616 16161616

131313131414 14141414

7777 77 7777 77 77 7777 7788 88 8888 8888 8888

99 99 99

66 66 6666 668866

5555 5555

111111 111111

55 5555

33333344 44 4444 44

1010

1414

1111 1111 11111111 11111010

1111121212121212

00

22 22 22222222

0000

(%)

13131313 1313

1010

Regarding desired areas for those who plan to lease new office space, the percentage answering the “Central 3 Wards” (77%→79%) has increased from last year (Figure 6).Within the Central 3 Wards, Nihonbashi (16%) ranks at the top, followed by Marunouchi (13%), Otemachi (12%), Toranomon (12%) and Roppongi (12%). Of all areas, only Kyobashi (7%→10%) gained 3 points or more compared to the previous survey. In “Other Wards/Areas”, which does not include the Central 3 Wards, Shinjuku (16%) ranks at the top, followed by Shibuya (16%→14%) which slightly lost ground compared to last year (Figure 7).

○ 79% of those with intent to lease new premises desire a location in the Central 3 Wards (Chiyoda Ward, Chuo Ward and Minato Ward).○ Nihonbashi (16%) ranks at the top. Kyobashi has increased as well (7%→10%).

1212

77 77777788

1010

44

2011（439） 2012（472） 2013（422）


Otem

achi

Marunouchi

Yurakucho

Uchisaiwaicho

Hibiya

Kojimachi/ Bancho

Hirakawacho/ Kioicho

Iidabashi

Akihabara

Shiodome

Shimbashi

Toranomon

Kamiyacho

Akasaka

Roppongi

Aoyama

Hamam

atsucho

Tamachi

Daiba/Aom

i

Shinagawa (around station)

Ariake

Tennozu/ Shinagawa seaside

Osaki

Shibuya

Ebisu

Shinjuku

Yotsuya

Toyosu

Yaesu

Nihonbashi

Kyobashi

Ginza

Harumi

0 20 40 60 80 100 (%)

4 Business Continuity Planning (BCP)

Percent of firms with a BCP plan increased (50%→52%) and is now over half of all respondents (Figure 8).When examined by corporate demographics, “Financial/Insurance” has a higher percentage (75%) of having BCP compared to other industries (Figure 9).The top 3 BCP items are Procedures and Planning such as “Procedures to Confirm Employee Safety” (93%), “Emergency supplies/provisions for employees” (89%) and “Procedures for employees with difficulty returning home” (70%), and of the points related to actual hardware, “Securing Communications” (53%) gained the most points (Figure 10).


【Figure 10 : BCP Content】　

【Figure 8 : BCP Status as of November 2013】n= 2128

○ Percent of respondents with a BCP plan in place steadily increased to more than half (52%).

○ By industry, “Financial/Insurance” has a higher percentage of having a BCP plan (75%) compared to other industries.

0

20

40

60

80

100(%)

April 2011 SurveyNovember 2012 SurveyNovember 2013 Survey

898989899494 9393

6767

8686

4343

6565 7070 6565 6161 606047475858 5959 53535353 5454

4343 3838 33333838 444435353737 3535 3030 26262626 2727

22 1111

Other

Procedures toConfirm

Employee

Safety

Emergency

Supplies/Provisionsfor Em

ployees

Procedures forEm

ployees who

can’t Return Hom

e

Information System

Backup Procedures

EvacuationProcedures

SecuringCom

munications

Establishment of

a Backup Offi

ce

Coordination with

the BuildingM

anagement

Company

UPS

(Uninterruptible

Power Supply)

Offi

ce BuildingSelection Standards

Existing BCP23%（485）

BCP Exists + No BCP,but Planning in Progress

75 %BCP Exists

52%

Planning to Revise Existing

BCP29%（622）

No BCP, butPlanning in

Progress23%（492）

No BCP & No Plans toMake BCP25%（529）

【Figure 9 : BCP Status by Corporate Demographics】

Existing BCP23%（485）

Planning to Revise Existing BCP29%（622）

No BCP, but Planning in Progress23%（492）

No BCP & No Plans to Make BCP25%（529）

25%（79）25%（79） 19%（60）19%（60） 26%（80）26%（80）30%（93）30%（93）

22%（398）22%（398） 24%（429）24%（429） 25%（440）25%（440）29%（519）29%（519）

20%（98）20%（98） 24%（118）24%（118） 25%（121）25%（121）31%（152）31%（152）

23%（337）23%（337） 25%（359）25%（359） 26%（378）26%（378）26%（387）26%（387）

28%（50）28%（50） 8%（15）8%（15） 17%（30）17%（30）47%（83）47%（83）Financial/Insurance（178）

Overall（2128）

Non-manufacturing（1461）

Manufacturing（489）

Japanese Company（1786）

Foreign Company（312）

75%


5 Expectations of Positive Effect on Business Performance due to the Tokyo Olympics


○ 37% of firms expect a positive effect on their business performance with Tokyo having been chosen as the venue for the 2020 Olympics.

Those answering “Expecting Enhanced Performance” (37%) due to the Olympics exceeded “No Change” (32%) and “Not Sure” (30%).Examined by corporate demographics, more Japanese Companies (38%) are expecting a positive effect on their business compared to the Foreign Companies (33%) (Figure 11).Broken down by industry, “Construction, Real Estate, Warehousing, etc.” (56%), “Manufacturing/Sales on Mining, Oil, Metal, etc.” (52%), “Manufacturing/Sales of Food” (47%) and “Transportation” (47%) were among the top industries (Figure 12).

【Figure 11: Expectations of Effect on Business Performance due to the Tokyo Olympics】

【Figure 12: Expectations of Effect on Business Performance due to the Tokyo Olympics by Industry】

0 20 40 60 80 100 (%)

37%（785） 30%（651）32%（679）0.7%

（14）

38%（675） 30%（544）31%（554）0.6%

（11）

33%（103） 30%（94）36%（114）0.6%

（2）

Overall（2129）

Foreigncompany

（313）

Japanesecompany

（1784）

Not Sure

Worsen

No Change

Expecting Enhanced Performance

0

20

40

60

80

100(%)

Overall（

2129）

Not SureWorsenNo ChangeExpecting Enhanced Performance

15% 18%

30%

52%56%

26%

3%31%

31%

37%

29%

24%

47%

23%

28%

2%

47%

37%

17%

46%

28%

27%

1%1%

44%

19%

37%

44%

28%

28%

1%

43%

28%

29%

1%

42%

30%

1%

27%

42%

27%

34%

39%

32%

37%

31% 30%

36%

34%

36%

33%

31%

27%

41%

32%

38%

31%

31%

32%

38%

30%

40%

31%

29%

39%

32%

29%

44%

28%

28% 26%

26%

48% 50%

25% 23% 23%24%

25% 16%

60%

34%

43% 39%

38% 36%

18%18%

46%

44%

37%

1%

14%

47%

39% 33%

56%

11%

※The number inside the parentheses indicates the number of firms.

Construction, Real Estate, W

arehousing, etc.

（163）

Manufacturing/Sales on M

ining, O

il, Metal, etc.

（63）

Food Related Manufacturing, Sales

（38）

Transportation

（61）

Other M

anufacturing Industries

（35）

Mass M

edia, Broadcasting, Advertising and Publishing

（91）

Architect Offi

ces and Design Consultants

（16）

Trading Companies

（249）

Retail (Shopping, Dining O

ut, etc.)（144）

Services (Temporary Staffi

ng, Defense, etc.)（

208）

Manufacturing/Sales of M

achines, Transport Plane M

achines, etc.

（64）

Leasing

（19）

Investment Business and Investm

ent Advisors

（67）

Manufacturing/Sales of Electricity,

Precision Instruments, etc.

（111）

Other Finance (Credit Sales etc.)（

37）

Clothing Manufacturing, Sales

（29）

Manufacturing/Sales of Fibers,

Papers, Pottery, etc.

（40）

Information Processing and Com

puter Software

（257）

Comm

unication

（38）

Security

（18）

Educational

（19）

Electric Power, G

as, etc.

（4）

Life Insurance and Other Insurance

（25）

（122）

Private Enterprises (Foundations, Corporations, etc.)

Accounting Offi

ce, Certified Tax Accountant O

ffice, M

anagement Consultants

（44）

Banks

（11）

Chemistry and M

edical Supplies Related M

anufacturers, Sales

（110）

Law and Patent O

ffices

（28）

Governm

ent Related Organizations

（18）

report of the results of the 2013 survey of oﬃce needs in ... · response rate： 2149（21.5%）...

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