Tokyo’s office space shrunk to its smallest on record in 2019
The office space per person in the 23 wards of Tokyo is at the smallest on record due to changing work trends and a tight supply and demand balance.
According to a survey by Xymax Real Estate Institute, cited in the December issue of the Nikkei Real Estate Market Report, the office space per person for 2019 averaged 3.71 tsubos (12.27 square meters). This number is the smallest since 2008 when Xymax started the survey.
Businesses in Asia typically allow between 100 and180 square feet (9.3-16.7 square metres) of office space per person, depending on factors such as the overall headcount, culture of the company and the need for amenities.
Tokyo’s office space has been on a downtrend after it peaked in 2011 at four tsubos (13.22 square meters) per person, according to the survey.
“There are many office tenants who want to increase personnel, but it is also difficult to relocate or to conduct floor expansions within the same building,” the Nikkei Real Estate report said.
As a result, office tenants are hiring more employees while maintaining the same office space, and not relocating. This trend has decreased the office space per person, concluded Xymax’s survey.
The Nikkei Real Estate report said the implementation of a free-address work environment, which allows staff to work anywhere—at home or in a café—has also contributed to the shrinking workspace.
According to the report, office space for existing tenants is at about 3.76 tsubos (12.43 square meters) per person in 2019. For new tenants, it has contracted by over 10 per cent compared to the previous year, at 3.34 tsubos (11.04 m2) per person.
For the next two years, Xymax forecasts a high likelihood that office spaces in Tokyo will remain flat or contract.
