2013 RENT DATA 38,333. Redevelopment of areas close to stations 20,067 16,500 20,000 18,960 19,188 18,

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1 ENGLISH Issue 3 / ruary 213 Published annually since RENT DATA 16,5 2,67 Published by Sanko Estate Co., Ltd. Ginza Sanwa, Ginza, Chuo-ku, Tokyo FEATURE: Major Urban Developments Redevelopment of areas close to stations Office ket Data Change in Office Rents and Economic Trends Office ket Trends Large-Scale Development Projects 38,333 19,188 18, ,663 11, 18, This report was printed using the waterless printing method, which contributes to reduced output of solutions from the printing process that contain organic compounds. Only environmentally-friendly, zero-voc (Volatile organic compounds) vegetable oil inks were used in the printing of this report. (excluding silver ink)

2 COMPANY OVERVIEW Company Name: Sanko Estate Co., Ltd. Established: 17, 1977 President: Tomohiro Ono Capital: 1,, Employees: 25 (as of ember, 212) Head Office: Ginza Sanwa, Ginza, Chuo-ku, Tokyo International Department: Tel: Fax: BRANCH NETWORK Sapporo: Sapporo Kita-Sanjo 3-1 Nishi, Kita 3-jo, Chuo-ku, Sapporo-shi Sendai: Aoba-Dori Plaza, Chuo, Aoba-ku, Sendai-shi Nagoya: Sakura-dori Otsu Daiichi Seimei, Nishiki, Naka-ku, Nagoya-shi Osaka: Midosuji Mitsui, Bingo-machi, Chuo-ku, Osaka-shi Fukuoka: Hulic Hakata, Hakata-ekimae, Hakata-ku, Fukuoka-shi COMPANY SERVICES Office leasing services, due diligence services, consulting services agent: License authorized by Minister of Land, Infrastructure, Transport and Tourism (9) No. 315 First-class Kenchikushi Office, Tokyo No License of Construction authorized by Governor of Tokyo (Special-24) No PROFESSIONAL AFFILIATIONS Tokyo Real Estate Brokers Association, National Real Estate Guarantee Association, Japan Facility Management Association, The Tokyo Chamber of and Industry British Chamber of in Japan The American Chamber of in Japan Sanko Estate Co.,Ltd. Unauthorized use of data and information contained in this brochure is prohibited. Printed in Japan. 213 RENT DATA CONTENTS FEATURE: Major Urban Developments Redevelopment of areas close to stations Office ket Data Change in Office Rents and Economic Trends Office ket Trends Large-Scale Development Projects READING GUIDE ABOUT THE SURVEY Survey period: From July 1 to ember 1, 212 Surveyed buildings: Office buildings marketed for tenants within the survey period Restricted to office buildings having at least 3 stories (standard floors) Retail buildings and warehouses are excluded. Number of buildings surveyed: 19,82 buildings (nationwide) Building size (net leasable area / floor) buildings 2 tsubo or more buildings 1 to less than 2 tsubo Terminology: Rent (Unit: yen/tsubo ) Average asking rent including common area maintenance (CAM) charges Vacancy rate The percentage of vacant space in relation to the total leasable area at the time of the survey (Current vacant space is the area available for immediate occupation) New supply Total leasable areas in newly constructed buildings FEATURE: Major Urban Developments Redevelopment of areas close to stations Numerous redevelopment projects are underway in major cities across Japan. Many of the projects aim not just to develop a single office building, but to develop an entire urban environment. This report covers major redevelopment projects, including a summary of future redevelopment trends. buildings 5 to less than 1 tsubo 1 Sanko Estate 2

3 Fuji Bldg/ Tokyo Kaikan Bldg/ Tokyo Shokokaigijyo PJ. Kokusai Shin Kokusai 18 Shin Tokyo Meiji Seimeikan Meiji Yasuda Seimei unouchi Park Kishimoto unouchi Nakadori Bank of Tokyo- Mitsubishi UFJ 3 JP Tower 1 Nihon Seimei unouchi 1 chome PJ. Yusen Mitsubishi Shouji unouchi Tokyo Kaijyo Nichidou Shin unouchi Palace 11 2 Otemachi 1-1 PJ. A/B 1416 Ote Center Otemachi First Tokyo Ginko Square Kyoukai Mitsui Sumitomo Ginko Honten Higashikan Keikaku Otemachi 1-6 PJ. Yomiuri Newspaper Otemachi KDDI Otemachi unouchi Eiraku Tokyo Sankei Otemachi Nomura unouchi Center Urban Net Otemachi Nihon Seimei Shin unouchi unouchi Center unouchi Shin Otemachi Kitaguchi Otemachi 1-9 PJ. Otemachi Financial North Tower South Tower Yurakucho Station Ginza 1 chome PJ. Sumitomofudosan unouchi 7 Tokyo Square Garden 4 Sogokan 11 tower Tokyo PCP 17 Gran Tokyo South Tower Kyobashi 2 chome West PJ. 1 Kyobashi Trust Tower Tokyo Station unouchi Trust Tower Hon-Kan N-Kan Gran Tokyo North Tower 13 Tokyo Tatemono Yaesu Nihon Sapia Tower Asahi Seimei Otemachi unouchi Chuo Shin Tekko Yaesu First Financial Nihombashi 2 chome E 12 JX Nihombashi 1 chome Nihon Ginko Nihombashi Mitsui Tower Nihombashi Muromachi Nomura Muromachi Higashi Mitsui 8 9 Muromachi Muromachi East Area 2-3 PJ. East Area 1-5 PJ. Nihombashihoncho 2 chome PJ. Muromachi East Area 2-3 PJ. Map of Tokyo Station Area Completed in Palace Building Scale: 23 stories above ground, 4 stories Standard floor area: Approximately 635 tsubo (299m 2 ) (lower floors), Approximately 681 tsubo (2251m 2 ) (upper floors) 2 unouchi Eiraku Building Scale: 27 stories above ground, 4 stories Standard floor area: Approximately 96 tsubo (3173m 2 ) 3 JP Tower Scale: 38 stories above ground, 4 stories below ground, 3-story penthouse Standard floor area: 97 tsubo (326m 2 ) 4 Sogokan 11 tower Scale: 12 stories above ground, 3 stories below ground, 3-story penthouse Standard floor area: 426 tsubo (147m 2 ) 5 Otemachi Financial North Tower Scale: 31 stories above ground, 4 stories Standard floor area: Approximately 717 tsubo (237m 2 ) 6 Otemachi Financial South Tower Scale: 35 stories above ground, 4 stories below ground, 3-story penthouse Standard floor area: Approximately 733 tsubo (2423m 2 ) Expected Completion in Tokyo Square Garden Scale: 24stories above ground, 4 stories Standard floor area: 148 tsubo (3463m 2 ) Expected Completion in Muromachi East Area 1-5 PJ. P 4 Scale: 17 stories above ground, 4 stories below ground 9 Muromachi East Area 2-3 PJ. Scale: 22 stories above ground, 4 stories below ground 1 Kyobashi Trust Tower Scale: 21stories above ground, 3 stories Standard floor area: 49 tsubo (1619m 2 ) 11 (Provisional name) Nihon Seimei unouchi 1 chome PJ. Scale: 22 stories above ground, 3 stories below ground Standard floor area: Approximately 51 tsubo (1685m 2 ) Expected Completion in Nihombashi 2 chome PJ. E Scale: 36 stories above ground, 4 stories below ground P 4 13 (Provisional name) Shin Tekko Building Scale: 26 stories above ground, 3 stories below ground Standard floor area: Approximately 75 tsubo (2479m 2 ) 14 (Provisional name) Otemachi 1-1 PJ. A Building Scale: 22 stories above ground, 5 stories Standard floor area: Approximately 834 tsubo (2757m 2 ) Expected Completion in (Provisional name) Otemachi 1-9 PJ. Scale: 31 stories above ground, 4 stories Standard floor area: Approximately 1279 tsubo (4228m 2 ) 16 (Provisional name) Otemachi 1-1 PJ. B Building Scale: 29 stories above ground, 5 stories Standard floor area: Approximately 1 tsubo (33m 2 ) 17 Kyobashi 2 chome West PJ. Scale: 33 stories above ground, 3stories below ground Expected Completion in Fuji Building/Tokyo Kaikan Building/Tokyo Shokokaigijyo Building PJ. Nihombashi, where a collaborative public, private and community initiative is regenerating the urban environment Aiming to serve not just business functions but also as a "town that is enjoyable to stroll around" The Nihombashi Muromachi East District Development Project consists of five city blocks: Block #1-5, Block #2-2, Block #2-3, Block #2-4, and Block #2-5. Muromachi Higashi Mitsui Building (COREDO Muromachi) in Block #2-2 was completed in ober 21 as a commercial building with 22 above ground and 4 below ground floors. Nihombashi Muromachi Nomura Building (YUITO) in Block #2-4 was completed in September 21, and Fukutoku Shrine Office, also in Block #2-4, was completed in 211. At present, construction is underway in parts of Block #1-5, Block #2-3, and Block #2-4. The development plans for Block #1-5 include offices and commercial facilities with 17 floors above ground and 4 floors below ground. Construction is scheduled for completion in January 214, with the commercial facilities scheduled to open in ch of that year. Block #2-3 will be the site of a complex with 22 above ground and 4 below ground floors. Like Block #1-5, construction is scheduled for completion in January 214. The development will include offices, retail & shopping area, a cinema complex, and rental apartments. Sembikiya Nihombashi Building (provisional name) in Block #2-4 is scheduled to be completed in ch 213. In the vicinity of Naka Dori Street and Ukiyo Alley, electric cables and power lines will be installed underground and covered with a stone pavement. Along Edo Sakura Dori Street, the row of cherry trees begun near the headquarters of the Bank of Japan will be extended. In Block #2-5, the renovation of Fukutoku Shrine, which is mentioned in rakugo story-telling, will create a new approach to the shrine and a lush green area called Fukutoku Forest, completing the Nihombashi Muromachi East District Development Project. The aim of this development project is to "create an enjoyable town to stroll around." For example, the vision is to align the lower buildings facing Chuo Dori Street to create a skyline roughly 31 meters high. It seems the notion of a uniform streetscape is being considered for future developments. Enhancing anti-disaster functions to support Business Continuity Plans The goal is to raise Nihombashi's status, so it s considered one of Japan's leading office sites in the future. To achieve this, efforts will be made not only to enhance Nihombashi's function as a center for information dissemination through the coordination of industry, government, and academia but also to enhance its disaster-prevention function which will support BCPs (Business Continuity Plans), which have rapidly garnered attention since the Great East Japan Earthquake. One such disaster prevention measure is the collaboration with Chuo Ward to create an underground walkway under Edo Sakura Dori Street. The walkway will be integrated into the underground Block 1-5 Block 2-3 Image of Nihombashi Area highway widening project of Chuo Dori Street. The new below ground walkway will have an area of approximately 3m 2 and can serve as a disasterprevention center in the event of a natural disaster. The below ground walkway will be able to accommodate about 3, people, providing support, disaster information, and a disaster stockpile for those who cannot return to their homes. At the same time, a system will be put into place for supplying 72 hours of power from an emergency generator. 1 years have passed since Mitsui Fudosan started revitalizing Nihombashi. The company has started broadening its target area to include area north of Chuo Ward, including the former Nihombashi Ward. Mitsui Fudosan s vision of Nihombashi has it covering a broad area stretching from the Yaesu Exit of Tokyo Station, beyond Chuo Dori Street, and across the Nihombashi River as far as the vicinity of Ningyo-cho. The revitalized Nihombashi will create an urban environment that is equipped with diverse functions. *Depending on future progress, the building names, completion dates, construction, etc. may change. Materials provided by Mitsui Fudosan 3 Sanko Estate Sanko Estate 4

4 Grand Front Osaka to open in late il 213, as a gateway to Asia and the world Will provide a high-class office environment on one of the largest scales in western Japan Around JR Osaka Station, a series of redevelopment projects have been underway after 2. In late il 213, the Umekita Phase 1 Development Area Project known as Grand Front Osaka will be completed, giving Osaka a new image. To the north of JR Osaka Station, the district centering on Umeda Freight Station, that has a total area of approximately 24 hectares, known as Umekita is Osaka's last undeveloped prime land. Grand Front Osaka is a project that divides a 7-hectare development area within this district into three blocks which, starting closest to Osaka Station, are called Block A, B, and C. The three blocks will host the construction of three skyscrapers (4 towers). A syndicate of twelve companies including Mitsubishi Estate is driving the project, which will supply 556,6m 2 of office, retails, hotel and residences. The daily average number of passengers using JR Osaka station is 85,*. If the adjacent six stations on the Hankyu, Hanshin and subway lines are included, the terminal is the busiest in western Japan with an average of 2.5 million passengers* per day. It boasts a good location, being 4 minutes by loop line from Shin-Osaka Station on the Tokaido Shinkansen Line and about 25 minutes (best time) by airport bus from Kansai International Airport (Itami Airport). The office environment in this area is one of the largest in scale and best in terms of standard in western Japan, and the local business community has high expectations for the project. Future plans for the Umekita Phase 2 Development Area include the establishment of a new station to which JR West's airport express Haruka will link directly from Kansai International Airport. The enhanced transportation access will very likely make the new station a junction linking Osaka's north, south, east and west. Grand Front Osaka will play a large role in driving the economy of Osaka and the Kansai region, and is also expected to serve as the future gateway from Osaka and Kansai to Asia and the rest of the world. For example, the improved access to Kansai Airport will help Osaka gain an advantage over Narita in terms of access to various countries in Asia. Knowledge Capital function aids innovation Block A of Grand Front Osaka will be the site of a super skyscraper having 38 above ground and 3 below ground floors for offices and commercial facilities. Block C will be a residential zone with condominiums constructed in a building having 48 above ground and 1 below ground floors. Each of the office floors in Block A will have an area between 24 and 28m 2. A multi-use complex will be constructed in Block B that will incorporate offices, commercial facilities, the Knowledge Capital (knowledge creation base), a hotel and serviced apartments. In particular, the Knowledge Capital planned for the lower floors will incorporate a knowledge salon, FLS (Future Life Showroom), collaboration office, conference rooms, and convention center, thereby providing a variety of workspaces conducive to innovation, a place for cooperation between industry and academia, and functions for aiding venture companies. Increasingly acclaimed as a hub linked to cities both in Japan and overseas Among the main features planned for Grand Front Osaka is a streetscape befitting its role as the gateway to Asia and the world. In addition to the planned Creation Walkway pedestrian mall that will run north to south from Osaka Station through Blocks A and B, a rooftop garden will be created on the lower floors of office building. It will be frequented by office workers who use it as a relaxation space and place for exchanging ideas. While the rents for the building will be among the highest in Osaka, the exceptional location and the first-class facilities are highly regarded. Early on, the site was acknowledged as occupying a rare location directly in front of JR Osaka Station. Creating a three-dimensional city in Japan's tallest skyscraper standing at 3 meters above ground level To some people, the Abeno/Tennoji area in Osaka's south may seem a long way from Osaka's city center, but Tennoji Station boasts superb transportation access that makes the trip about 15 minutes by train from JR Osaka Station (Umeda). Abeno Harukas is a structure being built by the Kintetsu Corporation directly above Kintetsu Osaka Abenobashi Station, which is close to Tennoji Station. With a height of 3 meters above ground level, Abeno Harukas will be the tallest office building in Japan. It will be a mixed-use facility in an enviable location with direct access to the station, a department store, hotel, art gallery, observatory, and office space. The grand opening is scheduled for the spring of 214. Abeno/Tennoji is a historical town where you can visit the famous temple of Shitennoji, which boasts a tradition of 14 years, and a shrine dedicated to Abeno Seimei, who was famous as a diviner. The name Abeno Harukas is associated with an old Japanese word "harukasu" which means "to brighten and clear up." It is a vibrant area with numerous commercial facilities and old shopping streets. It is the third busiest terminal in Osaka, with about 77, people passing through each day. However, one problem is that up until now Abeno/Tennoji has been used as a waypoint and few people spend any time there. It has been positioned as a so-called "hub station" for making connections. Going forward, Kintetsu Corporation will take advantage of the high number of users and easy access to the center of Osaka by creating state-of-the-art urban functions here. Kintetsu's vision is to create a "3-dimensional city" that establishes Abeno/Tennoji as an attractive new office zone. Columnless office space affords an efficient layout From Abeno Harukas, it is possible to access Kansai International Airport and Osaka International Airport (Itami Airport) in about 3 minutes. It is about 21 minutes by the Midosuji Subway Line to Abeno Harukas is set to open in Abeno/Tennoji, which promises to become Osaka's third core district Shin-Osaka Station and about 15 minutes by direct access to Umeda. In terms of the floor composition of the building, the second basement to Floor 14 will be used for the Osaka-Abenobashi Station and Abeno Harukas Kintetsu Department Store. Floors 17, 18, and 21 through 36 will be leased as office space with an area of approximately 4,m 2. Floors above that will be occupied by Osaka riott Miyako Hotel, and Floors 58 to 6 will be used as an observatory. In office skyscrapers, the elevators tend to become congested at the start and end of the working day and during the lunch break. As a solution, the elevators in Abeno Harukas skip the department store on the lower floors. The building is equipped with six large shuttle elevators (carrying up to 6 passengers each) that link directly to the office floors, allowing for smooth access to the offices. The area of a standard office floor in Abeno Harukas is an expansive 24m 2 (approximately 73 tsubo), and columnless office space makes it possible to achieve a free and efficient office layout. The entire area of 24m 2 can be used as is, or there is the option to partition the space according to a tenant's business style. Not only does the building provide both a pleasant office environment, it is also energy efficient thanks to the adoption of cutting-edge equipment. It also boasts seismic performance of the highest level. The number of inquiries increases even though the opening is over one year away The total office floor area previously provided in this area was less than tsubo (99174m 2 ). Compared to Osaka city center, which has over 4, tsubo (1,3m 2 ), the supply in the Abeno/Tennoji area has remained lower than the demand, so the area is thought to have a high potential for future growth. The area is popular not only with businesses, but also with educational institutions, as four universities (Shitennoji University, Hannan University, Osaka Ohtani University, and Osaka University of Arts) are already set to take up occupancy in the area. The Abeno/Tennoji area is expected to become one of Osaka's core districts along with the north (Umeda) and south (Nanba). It allows easy access, particularly for businesses looking to expand into Asia, and the fact that the area has an outstanding building worthy of being a landmark site makes it very attractive. *By JR WEST in FY28 and the Osaka Statistical Yearbook for FY28 Materials provided by Mitsubishi Estate Materials provided by Kintetsu Corporation 5 Sanko Estate Sanko Estate 6

5 Complex scheduled to be completed in the center of Sapporo in 214 Materials provided by JR Central New hive of activity to be created by Complex buildings in Meieki Meieki 1 chome PJ. Nagoya Station New Building JR Central Towers Dai Nagoya Building Materials provided by Mitsui Fudosan Mitsui Fudosan and Japan Post are currently constructing the Sapporo Mitsui JP Building (provisional name), a complex in the center of Sapporo's business and commercial district. Completion is scheduled for August 214, with shopping area scheduled to open in September of that year. The new building is located at the intersection of Sapporo Ekimae Dori Street, a business street in Sapporo lined with commercial facilities, and Kita 3-jo Dori Avenue along which there is a row of gingko trees extending from Red Brick (Former Hokkaido Government Office Building). It is a prime location, as it is directly linked to Sapporo Ekimae Dori Street Underground Pedestrian Space which was opened to the public in ch 211, 4 minutes walk to JR Sapporo Station, and 2 minutes to municipal subway Sapporo Station. The building will have 2 above ground and 3 below ground floors and a height of about 1 meters. The first basement and first four above ground floors will be used as a retail space, and 6-19th floor will be used as office space. The building's commercial facilities will include approximately 3 stores, with pleasant spaces created for adults to engage in various lifestyle activities. A single floor of office space will have an area of approximately 56 tsubo (1851m2) and a ceiling height of 2.8 meters. Its U shape and three clear sides create a light-filled, expansive space without obstruction from pillars, allowing for a open office layout. The building will also cater to tenants looking for small-scale office space thanks to its split use offerings (minimum space approximately 34 tsubo (112m2)). At present, a redevelopment is steadily progressing in District 1 of Meieki 1 chome where JR Nagoya Station and other key infrastructures are located. This development is based on the "basic concept of urban development" of Meieki 1 chome District 1 jointly put together by Central Japan Railway Company, Japan Post Holdings, Japan Post, Meiko and Nagoya Railroad. It is aimed at revitalizing the area in front of Nagoya Station and enhancing its function as a transportation hub. Nagoya Station New Building (provisional name) is currently being constructed in the southern part of the district. Upon completion, it will be a super skyscraper complex with a total floor area of approximately 26,m 2, a height of about 22 meters, and 46 above ground and 6 underground floors. Each of the first 15 floors will be connected to the adjacent JR Central Towers. It will provide a pedestrian corridor constructed as a 3-story atrium leading from Nagoya Station to the area north of the station, further enlivening the area and enabling it to support a wide variety of business activities. Meanwhile, the Meieki 1 chome Project (provisional name) is proceeding in the north of the district. The redevelopment project comprises a high-rise building and a low-rise building that, after completion, are expected to provide space for offices, commercial facilities, a post office, bus terminal, and parking lot. The high-rise building will have 4 above ground and 3 below ground floors, and the lower building will have 11 above ground and 1 below ground floors. Construction is expected to be completed around the fall of 215. In another district in the vicinity of Nagoya Station, the reconstruction of the Dai Nagoya Building is underway. This building, which has been a symbol of Nagoya since its completion in 1962, was closed in 212 due to the aging of the building. The plan is to renovate the 34 above ground floors for completion in 215. Perspective plan of Meieki 1 chome project Perspective plan of Dai Nagoya Building Redevelopment of Sendai Station East Exit as the gateway to Tohoku East Japan Railway Company has released a summary of the Sendai Station East Exit Development Plan. The project is ambitious, in that, it will develop not just a "point" (the station) but also "lines" and "surfaces" (train lines and areas respectively). It aims to create an attractive urban environment in which the station is the focus. The project will widen the free access passageway that links the East and West Exits from 6 meters to 16 meters. In addition to linking the Sendai Station West Exit, which is currently the primary center of activity and interaction, with the East Exit, the plan will also create a bustling, lively space that will facilitate movement between the station and city. Three new buildings will be constructed as part of the development project. A building with 6 above ground floors comprising commercial facilities, railway facilities and a parking lot will straddle the free access passageway. It is scheduled to be completed during the 215 fiscal year. To its east will be a hotel, with 14 above ground and 1 below ground floors, scheduled for completion during the 217 fiscal year. Beside the hotel will be an office building with 13 above ground and 1 below ground floors. This building is scheduled for completion during the 218 fiscal year. Birth of a new office zone in the Hakata area where redevelopment is underway The phase 2 building of the urban retail property TERASO is scheduled for completion in ch 214. The name TERASO comes from the Japanese word "terasu", meaning "to shine". This expresses the sense of terrace-like openness that is created when the sunlight hits the building (with a flame image) as well as the sense of hope for the future and positivity created when the morning sun shines on it. The building has 1 above ground and 1 below ground floors. Phase 1 and 2 form a twin building complex together. Meanwhile, newspapers have announced an agreement between as many as 11 land owners who plan to redevelop an area of approximately 2.2 hectares near the Hakata Post Office on the south side of Hakata Ekimae Hiroba. The project will utilize Fukuoka 's special system under which the floor area ratio can be increased to more than. The increase depends on the projects contribution to creating an urban environment that incorporate 5 key elements, such as "Asia" and "the environment." Additional details of the redevelopment project should be available next fiscal year at the earliest. With the opening of the Kyushu Shinkansen lines in the spring of 211, the entire area around Hakata Station has been injected with new life. It is expected that the upcoming redevelopment projects will make it even easier to move around the station area, so the district will attract even more people. 7 Sanko Estate Sanko Estate 8

6 OFFICE MARKET DATA SHINJUKU CHIYODA 35, 25, 15, 5, ,229 16,686 14,356 Nihombashi-Honcho, Nihombashi- Muromachi 18,5 14,533 13,313 Kyobashi, Yaesu, Nihombashi 24, 19,563 16,72 Higashi-Nihombashi, Shinkawa 17,425 13,845 11,322 TOKYO Chuo Ward SHIBUYA MINATO Office ket Data Building size (net leasable area/floor) buildings: 2 tsubo or more buildings: 1 to less than 2 tsubo buildings: 5 to less than 1 tsubo 1 tsubo = 3.3 sq m = sq feet CHUO , 1 9, 6, ,7 27,8 29,7 2,7 23,4 51,2 37, 3, Ginza 19, 22,333 21,443 Tsukiji, Shintomi, Kayabacho 18,96 15,25 12,354 Since peaking in 28, rents have maintained a gentle downward trend for all scales of buildings for 4 years in a row. While the vacancy rate has greatly improved for medium/ buildings, those for and medium-scale buildings remain flat due to a high level of supply. In 213, the supply is expected to double compared to 212, and in 214 onward, it will continue to exceed the historical average. TOKYO Chiyoda Ward Iidabashi, Kudan - 15,76 13,648 Kojimachi, Bancho 18,175 16,88 14,976 IMPERIAL PALACE Uchikanda, Kajicho 21, 16,189 13,68 The vacancy rate for buildings increased due to the significant supply increase in 212, with close to 1, tsubo (3m 2 ). However, the supply-and-demand balance for medium/large and medium-scale buildings continued to improve. The supply from 213 onward will remain at to of 212. YURAKUCHO TOKYO AKIHABARA unouchi, Otemachi 38,333 28, - Sotokanda, Iwamotocho 15,25 13,9 13,284 35, 25, 15, 5, , 1 9, 6, ,9 8,2 37,4 37,9 97,3 42,9 6,7 44, ,983 16,63 13, % , 25, 15, 5, , 6, , 68,2 21, 31,5 26,1 44,1 23,2 89,3 48, ,416 15,992 14, Akasaka, Aoyama 2,822 17,344 16,472 Roppongi, Azabu 17,5 14,19 14,379 Hamamatsucho, Takanawa 16,999 15,297 13,82 SHINAGAWA Shimbashi, Toranomon 19,749 17,865 15,7 The rents for all scales of buildings continue to decline. The vacancy rate for buildings is trending up again, but the vacancy rate for medium/ buildings has dropped significantly for 2 consecutive years. buildings declined for the first time in 5 years. After a decline in 213, the supply is projected to soar for 2 years, almost doubling on a year-on-year basis. TAMACHI HAMAMATSUCHO Shibaura, Kaigan 12,663 12,965 12,763 TOKYO Minato Ward 9 Sanko Estate 1 tsubo = 3.3 sq m = sq feet 1 tsubo = 3.3 sq m = sq feet Sanko Estate 1

7 OFFICE MARKET DATA OFFICE MARKET DATA TOKYO Shinjuku Ward Sapporo Okubo OKUBO TAKADANOBABA Kabukicho Kagurazaka ICHIGAYA IIDABASHI Kotoni Sakaemachi - SAPPORO Kitaguchi Odori-Higashi Nishi-Shinjuku SHINJUKU Ichigaya Led by an increase in vacancy rate for buildings, vacancy rate for all scales of buildings now exceed. In contrast, rents for buildings increased for the first time in 5 years. Supply remains at an extremely low level in 213, so an improving supply-and-demand balance is expected to reduce the accumulated vacant space. Odori-Nishi Ekimae-dori - Shin-Sapporo The supply-and-demand balance continues to improve gradually since peaking in 21, and vacancy rates for all scales of buildings have improved to their lowest levels since the Lehman Shock. The supply remains low in 213, and some signs of market recovery are appearing. TOKYO Shibuya Ward Sasazuka Nampeidai - A S HIBUY YOYOGI HARAJUKU EBISU Sendagaya Dogenzaka - Kencho Ichibancho Ekimae-Honcho Itsutsubashi - SENDAI Eki-Higashi Sendai Izumichuo Although supply was at a 5-year high in 212, vacancy rate fell for all scales of buildings, giving the impression of high demand for space in Shibuya Ward. Rents for and mediumscale buildings are stabilizing, and there is a clear trend towards a market rally. Although vacancy rates rose to due to a large supply increase during the 28 to 21 time period, the market shows signs of a rapid improvement in line with the progress of earthquake recovery projects. The rents have been on a gentle downward trend since the peak in 28, but signs of market recovery are appearing. 11 Sanko Estate Sanko Estate 12

8 OFFICE MARKET DATA OFFICE MARKET DATA Osaka The vacancy rate itself for buildings is high at over 8% and has not yet led to rental growth. The supply in 213 is significantly higher than the average in the previous 5 years, but will decrease in the following 2 years. Shinosaka-Kita 15,5 11,75 12,158 SHIN OSAKA Esaka 13,667 1,314 9,798 Senrichuo 14,424 15,572-15, 5, 15,144 11,339 1,71 Meieki 18,438 14,188 12,157 Fushimi 14,923 11,663 1,82 Nagoya Toyohashi 9,5 1,486 9, , 14,114 11,259 9,721 Shinosaka- Minami 12,333 1,8 9, % % NAGOYA Sakae 15,81 12,518 1,859 Chikusa 11,643 8,84 8,956 5, Umeda 18,986 13,733 12,245 Minamimorimachi 13,423 11,651 9,52 Kyobashi 11,1 12,5 13, , 59,2 Nagoya eki nishi 13,113 1,6 12,114 Nakaku 11,424 1,27 9, , Noda, Fukushima 1,733 1,14 9,48 Higobashi 11,625 12,621 9,42 Awaza, Nishi-Nagahori 1,667 7,713 8,4 Dojima, Nakanoshima 17,891 12,978 11, ,5 Nishiku-Honmachi 1,845 9,96 Yotsubashi 13,476 11,2 8, NAMBA OSAKA Yodoyabashi 18,349 14,125 1,365 Honmachi 14,557 1,287 9,921 Shinsaibashi 13,875 13,849 11,7 Namba 16,5 12,334 8,928 Kitahama 14,29 11,352 1,17 Tenmabashi 11,636 1,98 9,319 Sakaisuji- Honmachi 11,187 11,44 8,997 Nagahoribashi 9,833 11,515 9,336 Tennoji - 9,212 9,397 OBP KYOBASHI 15, Tanimachi 13,95 1,63 7,595 75, 5, 25, 38,6 4, , 5, , 21,7 4,7 12,2 4, ,417 1,986 1, Vacancy rates are improving for all scales of buildings since peaking in 21, but the downward trend in rents has continued unabated. The low level of supply since 211 will continue until 214, and the expectation for market recovery will increase within 2 years due to concern for oversupply in 215. Tenjin 15,672 11,91 11,462 Yakuin, Watanabedori 13,535 11,6 9,736 Gofukumachi 12,61 1,979 8,299 Ekimae 13,811 11,957 1,39 HAKATA Fukuoka Momochihama 11,5 - Ekihigashi 11,42 1,353 9,224 75, 5, 25, 57,1 39,3 3,9 23,6 56,4 16,4 18, , 28,8 26,7 8,6 1,7 4,2 1,1 1,3 3, In 28 and 29, vacancy rates rose significantly due to a large volume of supply combined with the drop in demand for office after the Lehman Shock. The market continues to improve gradually for all scales of buildings since 21. There are also the signs of rent increases, and the expectation for market recovery is growing. 13 Sanko Estate 1 tsubo = 3.3 sq m = sq feet 1 tsubo = 3.3 sq m = sq feet Sanko Estate 14

9 Change in Office Rents and Economic Trends Office rents (unit: yen/tsubo) *Excluding common Area Maintenance Charge Class A office buildings in central Tokyo (contracted rent) buildings in Tokyo Central 3 wards (contracted rent) *Class A office buildings: See P2 *Tokyo Central 3 wards of : Chiyoda Ward, Chuo Ward, Minato Ward GDP and vacancy rate (unit: %) Vacancy rate ( buildings in the Tokyo Central 3 wards) Real GDP growth rate (calendar year) Source: "SNA (System of National Accounts)" by the Cabinet Office Source of predicted values: NLI Research Institute Yen's accelerated appreciation/ renews postwar record high The Great Hanshin-Awaji Earthquake Economic structural reform starts with relaxation of regulations etc. Big Bang financial reform/ consumption tax increased to Economic downturn caused by collapse of financial institutions (Yamaichi Securities, Hokkaido Takushoku Bank) Unprecedented feeling of gloom due to worsening financial system collapse Concentration and expansion of IT/ Internet ventures in Shibuya Bit Valley Vigorous IT/ growing demand Collapse of IT bubble /concurrent stock selloff in Japan and the U.S. Simultaneous terror attacks in the U.S./ fears of simultaneous global recession Disposal of bad bank loans/ measures for financial stabilization Problem of large supply of newly constructed downtown offices Integrated deflationfighting measures/ beginning of industrial revival Nikkei Stock average recovers to about yen Progress in government's structural reform Tokyo 23 Convergence of problems Economic recovery Landslide victory by Liberal Democratic Party Enactment of postal service privatization bill Nikkei Stock average recovers to about 14, yen for first time in 5 years Revelation of seismic intensity documentation forgery problem Full-fledged economic recovery Izanagi boom curtailed Signs of mini real estate bubble Peak in real estate market rents Subprime mortgage crisis/ effect on the economy Lehman Shock (Critical outbreak of the global financial crisis) Shift of power to the Democratic Party First record-level appreciation of the yen in 15 years The Great East Japan Earthquake Renews recordsetting appreciation of the yen European financial crisis Rise in friction with neighboring countries affects the economy Contracted rent (yen/tsubo) 45, 45,513 4, Class A office buildings in central Tokyo (contracted rent) 35, 29,733 25, 15, 5, 11. office buildings in Tokyo Central 3 wards (contracted rent) % Real GDP growth rate 1.7%.. 1.7% 8.8% 2. Vacancy rate ( office buildings in Tokyo Central 3 wards) % % % 4.7% -. Vacancy rate ( office buildings in Tokyo Central 3 wards) 1.*.7%* *Source: NLI Research Institute 1 8% 7% Sanko Estate Sanko Estate 16

10 Supply Forecast 5, Planned new supply area (major cities nationwide) Tokyo 23 Wards Tama Area Chiba Prefecture Saitama Prefecture Kanagawa Prefecture Sapporo Sendai (unit:tsubo) Nagoya Osaka Fukuoka 9, Supply in Tokyo 23 Wards is halved and concentrated in the Central 3 Wards in 213. Outside Tokyo, supply is concentrated in Osaka, Nagoya and Kanagawa. 4, 35, 3, 25, 2, 15, 1, 5, Total 221,2 182,8 131,6 535,6 Planned new supply area (by wards) 16, 14, 3 3 3,3 3,3 6,4 6,4 21,1 28, 49,1 1,1 1,2 11,3 Chiyoda Chuo Minato Shinjuku Shibuya Shinagawa, Ota (unit:tsubo) Toshima, Bunkyo 59,2 4,7 63,9 Taito, Koto, Sumida 18,2 16,4 56,4 91, 3,5 1,3 1,1 5,9 Meguro, Setagaya Nakano, Suginami 8, 7, 6, 5, 4, Tokyo 23 Wards Supply in 213 drops to the half of 212 The supply* in Tokyo 23 Wards in the next 3 years is expected to be 535,6 tsubo (1,77,6m 2 ): 131,6 tsubo (435,m 2 ), 182,8 tsubo (64,3m 2 ) and 221,2 tsubo (731,2m 2 ) in 213, 214 and 215 respectively. 296,8 tsubo (981,2m 2 ) in 212 recorded the largest supply after 23. The supply in 213 significantly declines to the lowest level in the past 5 years. In 212, vacant space (available space for immediate occupation) soared to a record high since the inception in 1994, and vacancy rates rose markedly. In 213, the supply drops to the half of 212; therefore, the decline of both vacant space and vacancy rate is expected. 8% of supply in Tokyo 23 Wards is concentrated in the Central 3 Wards While the supply in Tokyo 23 Wards will decline markedly from 213 onward, it will be significantly concentrated in the Central 3 Wards. While the Central 3 Wards accounted for 5 of the supply in 212, this ratio jumps up to 8% (427,2 tsubo (1,412,2m 2 ) / 535,6 tsubo (1,77,6m 2 )) in the next 3 years. In terms of stock, the Central 3 Wards account for 5 (6,34, tsubo (2,96,m 2 ) / 11,36, tsubo (37,55,m 2 )) in Tokyo 23 Wards. Due to their geographical advantage, this concentration of supply might produce significant secondary vacant space not only inside, but also outside of these 3 wards. Tokyo suburbs and major cities nationwide Supply concentrates in large cities The largest supply increase is scheduled in Osaka among 9 areas for the next 3 years. More than a few high-rise landmark buildings are under construction including Grand Front Osaka with over 4, tsubo (1m 2 ) office space opening in 213 and Abeno Harukas opening in 214. Nagoya expects the second largest supply increase. 3 major projects are in progress around the Nagoya Station for completion in 215. Sizable supply is also expected in Kanagawa Prefecture and Sapporo. In contrast, total supply in the next 3 years remains as low as tsubo (33,m 2 ) or below in other areas. In particular, little supply is scheduled in Tama Area and Sendai. As each market size differs, supply itself does not indicate its impact on each market. Supply ratio to stock (= supply / stock) should also be considered as another benchmark to measure the impact of supply to each area. 1 SUPPLY Tokyo Tokyo Tokyo Tama Chiba Saitama Kanagawa Sapporo Sendai Nagoya Osaka Fukuoka 3 Wards* 1 5 Wards* 2 23 Wards Area Prefecture Prefecture Prefecture 1, ,9 15,3 191, 2,8 3,5 4, 29,7 8, 23,1 38,6 39,3 26, ,1 16,8 21,1 6,5 1,8 4,3 39,5 21,4 4,4 75,5 28,8 8, 21 98,7 116,4 198,9 4,2 9 36,8 4,8 14,7 21,7 57,1 1,7 6, ,7 135,2 213,4 21,9 2, 1,3 4,7 3,9 4, ,8 231,4 296,8 4 2,5 5,6 7,3 12,2 23,6 8,6 4, ,2 118,5 131,6 3 3,3 28, 1,2 4,7 56,4 1, , 151,4 182,8 6,4 21,1 1,1 16,4 1, , 176,6 221,2 59,2 18,2 3, Total 44, 6,7 42,9 147,6 3,7 37, 51,2 118,9 89,3 48,3 23,2 16,8 1,9 1,9 12,6 3,4 1,3 17,3 22,3 4, 6,3 32,6 1,1 1,8 2,9 3,1 26,4 3,5 33, 19,2 1,4 2, ,2 446,5 535,6 3 3,3 6,4 49,1 11,3 63,9 91, 5,9 Stock* 3 6,34, 8,2 11,36, 46, 5, 39, 1,5 6, 48, 1,19, 3, 85, Supply ratio* 4 6.7% %..7% % 5. 3.%.7% * 1= Tokyo Central 3 Wards (Chiyoda-, Chuo-, Minato-Ward) * 2 = Tokyo Central 5 Wards (Chiyoda-, Chuo-, Minato-, Shinjuku-, Shibuya-Ward) * 3 = As of 212 (unit: tsubo) * 4 = Total supply in the next 3 years / stock *Supply of the office buildings with the size at least 5 tsubo (165m2) of net leasable area per standard floor including, medium/, and medium-scale office buildings 17 Sanko Estate 1 tsubo = 3.3 sq m = sq feet 1 tsubo = 3.3 sq m = sq feet Sanko Estate 18

11 4, Class A Office Rent in Central Tokyo Central Tokyo* Class A office buildings *Tokyo Central 5 Wards and major office districts in surrounding areas (See P.2 Class A Office Guidelines ). Contracted rent Tokyo Central 3 wards office buildings Q3 (unit: yen/tsubo, CAM not included) Falling Class A office rent levels off in central Tokyo. Office demand shows signs of recovery though vacancy rates remain high. % 1,5, 1,, 5, Vacant space Occupied space Total 8% 7% % Q3 Vacancy rate Q3 Occupied space and vacant space 84, 85, 85, 88, 8, 9, 98, 1, 1,1, 1,2, Tenants motivation for relocation (unit: tsubo) 4, 1,24, 1,28, 1,3 1,34, (Monthly inquiry in Greater Tokyo) 1,37, 1,39, 1,54, 1,56, New supply 6, 1,5 1,57, Extension 1 1,45, 1,56, Maintain 8, 1,45, 1,5 8, 1,48, 1,56, Consolidation 21,295 14,26 15, 1,55, 1,7, Contraction ket in 3Q 212 Rents bottomed in 3Q 211 Office Rent Index, a benchmark of contracted rents produced jointly by Sanko Estate and NLI Research Institute, indicates that Class A office rent in central Tokyo dipped below yen / tsubo (3.36m 2 ) in the 3Q 211. This also means that it dropped to less than half its peak in 1Q 28. Primary reason behind the significant rent decline is that many existing buildings reduced their rents to emphasize their affordability against newly completed and completing buildings, particularly in 211. In 212, rents are leveled off above 21, yen / tsubo, partly because many buildings no longer maintained much space for further discount. Vacancy rates jump up due to large supply Large supply, mainly in Class A office buildings, flooded the market in the first half (January to ) of 212, and vacancy rates in the 2Q rose to 9.%. Due to a softened supply and demand balance, the rents have not bottomed-out yet, even after the supply peak passed. Although high vacancy rates remained in the 3Q, the market is expected to recover in 213 as the supply decreases significantly. As indicated in Tenants motivation for relocation, the downturn in demand after the Lehman Shock has abated and turned to a gentle upswing. Class A office stock in central Tokyo* Time-Series stock data Time-series Class A office stock data is tracked from 2 onward between occupied space and vacant space (available space for immediate occupation). Due to the large supply, stock in the 3Q 212 increased by 14, tsubo (463,m 2 ) in comparison with the end of 211. Since occupied space increased by only 7, tsubo (231,m 2 ) in the same period, the difference of 7, tsubo indicates an oversupply and rising vacancy rates. Occupied space** and vacant space Although the supply and demand balance has softened, the occupied space in 212 (1,55, tsubo, or 5,124,m 2 ) exceeds that in 27 (1,54, tsubo, or 5,91,m 2 ). In spite of significant increases in vacant space in 212, the total demand for Class A office space has finally recovered to the level before the Lehman Shock. Class A Office Guidelines Subject areas: Tokyo Central 5 Wards and major business districts in surrounding areas (such as Osaki, Meguro, and Iidabashi) Total floor area: tsubo or larger Area per standard floor: 3 tsubo or larger Years since completion: 15 years maximum, while major *The subject Class A office is refreshed regularly in accordance with the Class A Office Guidelines. **Occupied space is calculated as "stock minus vacant space" and includes temporarily off-market space for renovation. refurbishment is also considered. Facilities (as a general rule): Ceiling height 2.7m or more, individual air conditioning, high anti-seismic and environmental performance Tenants motivation for relocation In the office market, supply-side data is readily available such as new supply and leasable space on the market; however, demand-side data is relatively limited partly due to the difficult task of quantifying demand itself. Getting inquiries for office relocation, Sanko Estate conducts an individual hearing for each company and tabulates its motivation for relocation as the initial data for office demand. The graph provided here shows monthly office relocation demand in the Greater Tokyo Area for the period between January 2 and November 212. After the Lehman Shock, "contraction," a negative sign for office demand, reached over along with "consolidation", which increased to about. These changes coincide with the increased relocation demand for the purpose of reducing occupied space during the recession. As "contraction" has decreased to recently, negative motivation for relocation is decreasing. 19 Sanko Estate 1 tsubo = 3.3 sq m = sq feet 1 tsubo = 3.3 sq m = sq feet Sanko Estate 2

12 Office Stock Medium / Office Stock in Tokyo. Tokyo 23 Wards Tama Area Chiba Prefecture Saitama Prefecture Kanagawa Prefecture Sapporo Sendai Nagoya Osaka Fukuoka 12,,, 8,, 6,, 4,, 2,, Medium / Total Medium / Total Office stock in terms of total leasable area 2,16, 2,2 6,99, 11,36, , , 5, , 39, Office stock in terms of the number of buildings 5,7 2,5 1,6 9, Office Stock in Tokyo 23 Wards 12,, (unit: tsubo) (unit: tsubo) 27, 3 95, 1, ,5 15, 17, 28, 6, , 15, 24, 48, , 3, 6 1,19, ,2 6 77, 1,6 3, 1, ,5 Number of buildings in Tokyo 23 Wards 19, 2 44, 85, , Stock in Tokyo 23 Wards Time series office stock in Tokyo 23 Wards is tracked from 27 between occupied space* and vacant space (available space for immediate occupation). Subject includes the office buildings with the size at least 5 tsubo (165m2) of net leasable area per standard floor including, medium/, and medium-scale office buildings. Stocks in the Central 5 Wards and the Central 3 Wards are shown in the table below. Office stock in Tokyo 23 Wards increased by 86, tsubo (2,843,m2) over the last 5 years from 1,5, tsubo (34,7m2) to 11,36, tsubo (37,554,m2). While 7 tsubo (2,38,m2) of this increase was added to vacant space, occupied space also increased by 14, tsubo (463,m2). Whereas vacancy rate is an indicator of the supply and demand balance, occupied space is an indicator of total office demand. Occupied space in Tokyo 23 Wards bottomed in 29 at 1, tsubo (33,91,m2) and records show consecutive growth for the last 3 years. It has already surpassed the level prior to the Lehman Shock. Number of buildings in Tokyo 23 Wards Since 27, the number of office buildings in Tokyo 23 Wards has risen from 9,5 to 9,8. In a breakdown by building size, the number of buildings in 3 building scales have risen by 1 each. buildings account for, medium/ buildings account for 2, and buildings account for the remaining 1. What is the Office Rent Index The Office Rent Index is an index based on contracted rents. It was jointly developed by Sanko Estate and NLI Research Institute. Sanko Estate has been publishing this index every quarter since the 4th quarter of 21. It covers Tokyo Central 3 Wards and is categorized by building size. The index can also be downloaded from Sanko Estate s Website. ( -Rent index by building size -Year-on-year change in rent by building size -Rent of buildings (unit: yen/tsubo) Class A Office Rent Index Office Rent Index for Class A office buildings in central Tokyo is extended from Office Rent Index for large, medium/large and medium-scale office buildings. In addition to the rents for Class A office buildings, it also publishes the vacancy rates and the stock. "Standard" Class A office buildings in the statistical model -Net leasable area per standard floor: 6 tsubo -Number of floors above ground: 35 floors -Years since construction: 12 years -Proximity to the closest station: 3 minutes walk, 8, 8,, 6,, 4,, 6, 4, Tokyo 3 Wards Buildings Vacant Space Occupied Space Total 27 4,5 1, 5,9 6, 28 4,5 2, 5,85, 6,5, 29 4,5 4 5,68, 6,1, Tokyo 5 Wards Buildings Vacant Space Occupied Space Total 27 6,2 1 7,57, 7,7, 28 6,3 27, 7,5, 7,77, 29 6,3 56, 7,29, 7,85, 2,, Vacant space Occupied space Total , 1,3, 1,5, 38, 1,25, 1,6 75, 1, 1,76, 86, 1, 1,89, 86, 1,2 11,7, 9 1,44, 11,36, 2, Medium / 5,6 2,4 1,5 5,6 2,4 1,5 5,7 2,4 1,5 5,7 2,5 1,5 5,7 2,5 1,6 5,7 2,5 1,6 21 4,6 48, 5,66, 6,14, 21 6,4 6 7,28, 7,9, 211 4,6 44, 5,74, 6,18, 211 6,4 59, 7,4, 7,99, 212 4,6 47, 5,87, 6,34, ,4 6 7,6, 8,2 Tokyo 3 Wards = Chiyoda-, Chuo-, Minato-Ward Tokyo 5 Wards = Chiyoda-, Chuo-, Minato-, Shinjuku-, Shibuya-Ward *Occupied space is calculated as "stock minus vacant space" and includes temporarily off-market space for renovation. 21 Sanko Estate Sanko Estate 22

13 Office Demand Analysis Major cities nationwide Legal, Accounting, Tokyo 23 Wards 18% Major areas in Tokyo unouchi, Otemachi Legal, Accounting, 17% 17% Shibuya, Dogenzaka, Sakuragaoka, Nampeidai Sapporo Ekimaedori, Kitaguchi, Odori-Nishi, Odori-Higashi) Financial s Financial s Financial s 7% 17% 1 1 Legal, Accounting, warehousing 7% Yaesu, Kyobashi, Nihombashi 1 Legal, Accounting, Financial s 8% Financial s 1 Legal, Accounting, 8% Gotanda, Osaki 37% Financial s 7% Legal, Accounting, Financial s Osaka Central 3 Wards Legal, Accounting, 1 1 8% Legal, Accounting, consulting 7% Akasaka, Aoyama, Roppongi Higashi-Ikebukuro, Minami-Ikebukuro Sendai Ekimae-Honcho, Ichibancho, Kencho, Itsutsubashi, Eki-Higashi) Legal, Accounting, 17% Financial s 1 18% 1 Financial s % 2 18% 2 Financial s 2 Financial s 7% 1 Legal, Accounting, Nagoya 18% Legal, Accounting, Legal, Accounting, Legal, Accounting, Legal, Accounting, Telecom, IT 1 % 1 1 Financial s Nishi-Shinjuku Financial s 1 Ueno, Taito 1 1 Fukuoka Ekimae, Gofukumachi, Tenjin 1 Financial s % 8% 17% Financial s Legal, Accounting, % 7% 8 major areas in Tokyo and 5 major cities nationwide. Industry share in demand for each area. 8 major areas in Tokyo unouchi, Otemachi (Chiyoda Ward) Many leading Japanese and foreign companies have set up their headquarters in this area, and the office demand is distributed across various industries. Given the relatively expensive market rent in this area, Legal, Accounting, and Financial s companies are prevalent due to their relatively strong rent affordability. In contrast, is the lowest among the 8 major areas. Yaesu, Kyobashi, Nihombashi (Chuo Ward) The Yaesu, Kyobashi area is a popular headquarters location for large and medium-sized Japanese companies, and the Nihombashi area is characterized as a commercial district. and Industry account for high proportion compared to the unouchi, Otemachi area, while Legal, Accounting, and Financial s account for a lower proportion. Akasaka, Aoyama, Roppongi (Minato Ward) Compared with the unouchi, Otemachi and Yaesu, Kyobashi, Nihombashi areas, stands out in this area. Given that the major TV companies are located in Minato Ward, is the highest here among all 8 major areas in Tokyo. Nishi-Shinjuku (Shinjuku Ward) In addition to the characteristics that make it a popular headquarters location for many companies in the service industry, the Nishi-Shinjuku area is in demand from various other industries due to its geographic convenience for branches and sales offices to cover western Tokyo. Although Industry is relatively high, the office demand is very diverse across industries. Shibuya, Dogenzaka, Sakuragaoka Nampeidai (Shibuya Ward) Befitting Shibuya's image, companies account for the majority of office demand. Industry is also the highest here among all 8 major areas of Tokyo. These two industries account for 7% of the office demand in the area. Gotanda, Osaki (Shinagawa Ward) Historically, the Gotanda, Osaki area is characterized by the accumulation of electrical and telecommunication manufacturers. In addition to this characteristic, continuously progressing largescale developments around Osaki Station have attracted outside demand and increased the space occupied by to one-third. Telecom, IT has the second highest share among the 8 major areas of Tokyo, only behind the Shibuya, Dogenzaka, Sakuragaoka, Nampeidai area. Higashi-Ikebukuro, Minami- Ikebukuro (Toshima Ward) The Ikebukuro area, which is the gateway to the northwestern part of the Greater Tokyo Area, attracts a large demand for branches and sales offices from the finance industry. The large population along the train lines running through Ikebukuro Station also boosts the demand for schools and increases Education, Health, Government. Ueno, Taito (Taito Ward) While there is a concentration of wholesale and retail stores around Ueno and Okachimachi Stations, the Ueno, Taito area also has various medium and small sized manufacturers spread over a wide area. exceeds, which is the highest among the 8 major areas of Tokyo. The fact that and account for more than half the office demand puts this area in contrast with the Shibuya, Dogenzaka, Sakuragaoka, Nampeidai area. Osaka Central 3 Wards Over half of all office demand is accounted for by 3 industries:, Industry and. In particular, is the highest at 18%, and relatively higher compared to other cities. Nagoya More than half of all office demand is accounted for by 3 industries:, Industry, and. While is higher compared to Osaka Central 3 Wards, is lower. Sapporo The consolidated proportion of Industry and is the highest among the 5 major cities nationwide, and these two industries account for more than. In contrast, the demand from and is relatively limited. Sendai More than half of all office demand is accounted for by 3 industries:, Industry, and. In this respect Sendai shares similar office demand characteristics with Nagoya. The low demand from is also similar to Nagoya. Fukuoka Fukuoka is characterized by the highest proportion of Financial s among the 5 major cities nationwide as well as a sizable presence of, Industry, and Telecom, IT. Since Fukuoka is the commercial hub of the Kyushu District, this city attracts significant demand for the branch offices of financial institutions with nationwide service networks. 23 Sanko Estate Sanko Estate 24