ENGLISH Issue 29 / February 212 Published annually since 1984 Published by Sanko Estate Co., Ltd. Ginza Sanwa, 4-6-1 Ginza, Chuo-ku, Tokyo FEATURE: Major terminals Page 13 Tokyo Central Business District Page 3 Office market trends Page 5 Chronology of office buildings & transportation infrastructure Page 25 www.websanko.com This report was printed using the waterless printing method, which contributes to reduced output of solutions from the printing process that contain organic compounds. www.websanko.com Only environmentally-friendly, zero-voc (Volatile organic compounds) 1% vegetable oil inks were used in the printing of this report.

Reading Guide CONTENTS COMPANY OVERVIEW Company Name: Sanko Estate Co., Ltd. Established: May 17, 1977 President: Tomohiro Ono Capital: 1,, Employees: 33 (as of December, 211) Head Office: Ginza Sanwa, 4-6-1 Ginza, Chuo-ku, Tokyo International Department: Tel: +81-3-3564-851 Fax: +81-3-3564-832 E-mail: Contact@sanko-e.co.jp BRANCH NETWORK Sapporo: Sapporo Kita-Sanjo Building, 3-1 Nishi, Kita 3-jo, Chuo-ku, Sapporo-shi Sendai: Aoba-Dori Plaza, 3-2-1 Chuo, Aoba-ku, Sendai-shi Nagoya: Sakura-dori Otsu Daiichi Seimei, 3-4-6 Nishiki, Naka-ku, Nagoya-shi Osaka: Midosuji Mitsui, 4-1-3 Bingo-machi, Chuo-ku, Osaka-shi Fukuoka (affiliated company): Dai Hakata, 2-2-1 Hakata-ekimae, Hakata-ku, Fukuoka-shi COMPANY SERVICES Office leasing services, commercial real estate brokerage services, property management services, due diligence services, real estate appraisal services, consulting services Real estate agent: License authorized by Minister of Land, Infrastructure, Transport and Tourism (8) No. 315 Class 1 registered architect s office: Registration No. 43235, Governor of Tokyo Real estate appraiser: License authorized by Governor of Tokyo (3) No. 1558 Type II Financial instruments business, investment advisory business, and agency business: License authorized by Director-General of Kanto Local Finance Bureau (Kinsho) No. 1294 PROFESSIONAL AFFILIATIONS Tokyo Real Estate Brokers Association, National Real Estate Guarantee Association, Tokyo Real Estate Appraisers Association, New Office Promotion Association, Japan Facility Management Promotion Association, The Tokyo Chamber of Commerce and Industry ABOUT THE SURVEY Survey period: From July 1 to December 1, 211 Surveyed buildings: Office buildings marketed for tenants within the survey period Number of buildings surveyed: 2,389 buildings (nationwide) 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 Important Terms Some of the terms unique to the Japanese office rental market that you may find useful to know 1. Floor Area (Menseki) Space in Japan is usually expressed in square meters (m2), but the term tsubo is also common (1 tsubo = 3.35785 sq m or about 35.58 sq feet). Floor space is usually measured from wall center to wall center. However, prospective lessees should be careful when comparing offices, as rental contracts often differentiate between two types of space. One type refers only to the space occupied exclusively by the tenant (senyo menseki) while the other refers to both exclusive tenant space and common space (kyoyo menseki) such as corridors, restrooms, pantry and elevator halls. 2. Deposit Money (Hosho-kin or Shiki-kin) Before tenants start occupying any rental accommodation in Japan, they are required to pay the building owner a non-interest-bearing deposit, commonly equivalent to 1 to 12 months of rent. [In most cases the payment is requested to be made on the day of the lease signing]. This gives the new tenant credibility, while the owner generates a financial reserve out of which any tenant-incurred losses are paid. The owner will return the deposit after the delivery by the lessee of the leased premises to the lessor. Most rental contracts stipulate that the deposit money will be raised in proportion to a property s rent when the rent itself is increased. 3. Common Area Maintenance (CAM) Charges (Kyoeki-hi, Kanri-hi) In addition to rent, tenants are usually asked to pay a monthly common area maintenance charge that covers the cost of utilities for common space such as lobbies, halls and restrooms, as well as the cost of building maintenance and security services. Items covered by the fee vary from building to building, so prospective tenants should confirm in advance whether the fee covers cleaning and air-conditioning and/or heating costs. Surveyed buildings: Restricted to office buildings having at least 3 stories (standard floors) Retail buildings and warehouses are excluded. 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 4. Restoration to Original Condition (Genjo-kaifuku) When a tenant in Japan terminates a lease contract and prepares to vacate, all premises must be restored to their condition at the time that the contract commenced. This restoration is at the tenant s expense but mostly executed by the companies specified by owners and landlords. It usually includes at a minimum replacement of all floor carpeting, repapering all wallpapered walls, repainting ceilings (and sometimes walls), repairs to all walls, floors and ceilings, and the removal of any fixtures installed by the tenant. Owners and landlords can be counted on to rigorously enforce this. 5. Depreciation Fee (Shokyaku-hi) Owners of small-sized buildings often demand that tenants pay a depreciation fee. This is deducted as a percentage from the deposit (usually 1% to 2%) when the contract ends, and the deposit minus the fee is then returned to the lessee. The term depreciation fee is used here, but there is no direct relationship between the fee and building depreciation. 6. Renewal Fee (Koshin-ryo) Most office leases stipulate a two-year contract period, and rental contracts can be renewed upon expiry. It is common for owners of small-sized buildings to demand a renewal fee when rental contracts are renewed, and this fee is usually one month s rent at the rate stipulated in the new rental contract. Tokyo Central Business District 3 Office market trends 5 Tokyo suburbs/major cities 7 Office Stock 9 Central Tokyo Class A Office Rent Index 11 Major Terminals 13 Office market data Tokyo Chiyoda Ward 19 Chuo Ward, Minato Ward 2 Shinjuku Ward, Shibuya Ward 2 1 Sapporo 22 Sendai 22 Osaka 23 Nagoya 24 Fukuoka 24 Chronology of office buildings & transportation infrastructure 25 Sanko Estate Co.,Ltd. Unauthorized use of data and information contained in this brochure is prohibited. Printed in Japan. 1 Sanko Estate Sanko Estate 2

Kasumigaseki Kasumigaseki Common Gate Sakuradamon Sta. CENTRAL BUNKYO WARD Kasumigaseki Sta. NAKANO WARD TAITO WARD Imperial Palace Toranomon Sta. Ministry of Trade, Economy and Industry SHINJUKU WARD Japan Post CHIYODA WARD MACARTHUR DORI AVE. Kanjo No. 2 PJ Nippon Express Shinbashi Tokyu Kyodo News Shiodome Sta. Shiodome Sumitomo Calyon Hamarikyu Garden Kowa Nishi-shinbashi Kikkoman NTV Tower Shiseido Royal Park Tokyo Shiodome Softbank Conrad Tokyo SHINBASHI STA. Shinbashi sta. Dentsu Shiodome PwC Nishi Shinbashi 1-chome PJ SOTOBORI DORI AVE. Shiodome City Centre Fujitsu ANA Mitsui Chemicals Panasonic Daido Life Kasumigaseki Hibiya Central Warner Bros. Fukoku Life Dai-ichi Hotel Tokyo Lino Hibiya Kokusai Uchisaiwaicho Sta. Hibiya Dai Recruit Mizuho Bank Ministry of Health, Labor and Welfare Tokyo Electric Power Imperial Hotel Sumitomo Mitsui Banking Toho Hibiya Toho Shiseido Loewe Dolce&Gabbana Rolex Louis Vuitton Valentino Burberry Piaget Kojun Audemars Barneys Giorgio Armani Piguet Salvatore Ferragamo Abercrombie & Fitch Mont Blanc Dior ZARA H&M Lanvin Swatch Prada Bvlgari Tasaki UNIQLO Ginza Garden Matsuzakaya Forever 21 Ricoh Mitsui Garden Hotel Ginza Nittochi Ginza G-7 NBF Hibiya Imperial Tower Ginza SHOWA DORI AVE. Jiji Press Tokyo Takarazuka Higashi Ginza Sta. Kabukiza Redevelopment Hibiya park Ginza 5-chome PJ Ginza Sta. HARUMI DORI AVE Hermes Coach Ginza Sta. Oji Paper Hibiya Sta. Gucci The Peninsula Tokyo Yurakucho Denki Seiko Hankyu Lumine Yurakucho Wako Mikimoto Apple Mitsukoshi Chanel Matsuya Louis Vuitton Dai-ichi Life The Norinchukin Bank YURAKUCHO STA. Marui Regus Printemps Kokusai Bic Camera Tokyu Hands Mikimoto Chopard Bottega Veneta De Beers Cartier Dunhill Bvlgari Tiffany Shin Kokusai SOTOBORI DORI AVE. Harry Winston Ginza 1-chome PJ Fuji Deloitte Tomatsu Consulting Tokyo International Forum Hotel Seiyo Ginza SETAGAYA WARD Meiji Yasuda Life Novo Nordisk Marunouchi Park Nippon Steel Nittobo Kyobashi 3-1 PJ Sogokan 11 Tower SHIBUYA WARD Bank of Tokyo- Mitsubishi UFJ Tokyo JP Morgan Chase Mitsubishi Electric KAJIBASHI DORI AVE. MEGURO WARD Nijubashi Sta. Meiji Holdings Kishimoto Marunouchi Nakadori PCP Four Seasons Yaesu Book Center Kyobashi 2-chome West Area Kyobashi Sta. Takaracho Sta. MINATO WARD Mitsubishi Corporation JP Tower NYK Marunouchi Bloomberg IBM BCS GranTokyo South Tower BMW Sumitomo Trust & Banking Recruit Kyobashi Trust Tower Mitsui Sumitomo Kaijo Tepco B CENTRAL BUSINESS DISTRICT CHUO WARD Tokyo Marine Nichido Mitsubishi UFJ Trust and Shin Marunouchi Banking Nikko Citigroup UBS JFE Asahi Glass Marunouchi Tokyo Sta. Bridgestone YAESU DORI AVE. Palace Palace Hotel Nissay Otemachi Tokyo Ginko Kyokai Nissay Marunouchi Nippon Life Hitachi Boeing HSBC Sumitomo Mitsui Banking Marunouchi Eiraku Marunouchi Hotel GranTokyo North Tower BNP Paribas Daiwa Securities Daimaru Sumitomo Mitsui Banking E Yaesu Center Otemachi Nomura Konica Minolta Urbannet Otemachi Nomura Securities Shin Marunouchi Center Shin Otemachii Marunouchi Kitaguchi Bayer Standard & Poor s Nomura Research Institute Nihonbashi Plaza Maruzen Otemachi First Square UBS Otemachi 1-6 PJ Sapia Tower Amgen Hotel Metropolitan Mitsui & Co. Asahi Life Otemachi Marunouchi Trust Towers KPMG FAS BlackRock JX Shangri-la Hotel Tokyo Pasona Marunouchi 1-chome 1-12 PJ Tokyo Tatemono Yaesu Ote Center Nihonbashi 2-chome Redevelopment Otemachi Sta. Otemachi EITAI DORI AVE. Yaesu First Financial Nihonbashi Sta. Nihonbashi Sta. Yomiuri Newspaper Otemachi Sta. Nihon Mizuho Trust and Banking Nikkei JA D&B Keidanren Mitsubishi Material KDDI Otemachi Otemachi Financial City Tokyo Sankei S N SAP Nihonbashi 1-chome Merrill Lynch Otemachi Bank of Japan Mitsukoshi Nihonbashi Mitsui Tower Chugai Pharm Mandarin Oriental Tokyo Nihonbashi Muromachi Nomura Yuito East Muromachi Mitsui COREDO Muromachi Muromachi East Area 1-5 Mitsukoshi-mae Sta. AIG Nihonbashihoncho Muromachi East Area 2-3 Nihonbashihoncho 2-chome PJ Hamarikyu Mitsui Kanematsu Shimizu Corp. Nihonbashi Dia Tokyo Central Business District The four square kilometers that encompass Shiodome in the south, through Ginza, Marunouchi and Otemachi to Nihonbashi in the north, display a gloss and polish consistent with their reputation as Japan s most prestigious business district. NORTH BUILDING COMPANY RETAILER HOTEL DEPARTMENT STORE 25 M 3 Sanko Estate Sanko Estate 4

16, 14, Office market trends: Chiyoda Chuo Minato Shinjuku Shibuya Shinagawa Toshima Taito, Koto, Meguro, Setagaya, Ota Bunkyo Sumida Nakano, Suginami Scheduled new supply 212 213 214 (Unit: tsubo) Rents appear to be reaching the bottom, but a sense of uncertainty looms over demand. A high level of new supply is concentrated in Tokyo Central 3 Wards. 1 1, 8, 6, 4, 15% 1% 5% 35, 3, 25, 2, 15, 1, 5, Vacancy rate Rent (Unit: Yen/tsubo) New supply in Tokyo Central 3 Wards (Chiyoda, Chuo & Minato-Wards) Tokyo Central 5 Wards (Chiyoda, Chuo, Minato, Shinjuku & Shibuya-Wards) 21 211 '7 '8 '9 '1 '11 '12 '13 '14 '7 '8 '9 '1 '11 '12 '13 '14 '7 '8 '9 '1 '11 '12 '13 '14 (Unit: tsubo) Demand The domestic economy is expected to grow,but there is growing uncertainty stemming from the financial instability in Europe Japan s economy slumped after the earthquake, but with post-earthquake revitalization beginning to take full effect in 212, economic recovery is expected to be on track. Thanks to investment in post-earthquake revitalization being well underway, domestic demand is expected to expand, but the slowdown in the global economy may possibly put a damper on the upward momentum in Japan s economy. Continued austerity in the employment gives office demand cause for concern. Although there is movement toward economic growth, the employment situation remains severe. A delay in improvement of the employment situation will bring consumption expenditure to a standstill and hinder business activity. At the same time, sluggish growth in the number of employed will have adverse effects on demand for offices, heightening the sense of uncertainty in the office market. Rents Although rents are trending downward, there are signs that rents in some districts are reaching the bottom A look at the transition in rents over the past year shows that rents for large-scale buildings have recorded declines in all nine districts. Rents are falling in most districts even for medium/large-scale and medium-scale buildings. The drop in rent has continued since the Lehman shock, but the pace of the drop is beginning to slow. Recently some districts have started to show the signs of rents reaching the bottom and many think that current rent level in general is around the market bottom. Vacancy rate Continued high vacancy rate coupled with high volume of new supply allows tenants to consider an unprecedented wide selection of offices. Vacancy rate over the past year recorded a rise for large-scale buildings in 5 out of 9 districts, for medium/large-scale buildings in 3 districts, and for medium-scale buildings in 4 districts. In addition to the high level of vacant space, the largest volume of new supply in the past 5 years is predicted in 212. The amount of vacant space, including that in the buildings currently under construction, is nearing a record high. In 212, a substantial increase in supply is expected mainly in Tokyo Central 5 Wards, followed by a further concentration of supply in Tokyo Central 3 Wards. New supply in in 212 will reach more than 3, tsubo, which is the largest volume for the past 5 years. The level of new supply will then drop to less than half in the following two years, but the supply will be considerably more concentrated in Tokyo Central 3 Wards, which enjoy superior site quality. Tokyo Central 3 Wards account for 56% of new supply in in 212, but this ratio is predicted to reach more than 8% in 213 and 214. Decent amount of new supply is expected as a percentage of stock in central Tokyo in the next 3 years. A comparison of the total new stock for the next 3 years as a percentage of stock (=new supply/stock) shows that Tokyo Central 3 Wards has the highest ratio among Japan s major cities at 7%. Regarding Tokyo Central 5 Wards and then, the ratio drops to 6.4% and 5.5% respectively, but even so this is a high level in comparison with Japan s major cities. (See Office trends: Tokyo suburbs/major cities on pages 7 and 8) The effects of the large supply volume likely go beyond the Greater Tokyo Area simply because Tokyo 23 Wards houses more than 5% of stock in Japan s major cities. New Tokyo Central Tokyo Central Tokyo 3 Wards 5 Wards 23 Wards 212 168,1 234,2 31, 213 96,1 16,9 113,1 214 166,8 166,8 194,8 3 Year Total 431, 57,9 68,9 Stock* 6,2, 8,, 11,1, 3 Year Total as a % of Stock 7.% 6.4% 5.5% *Aggregate at the end of 211 (unit: tsubo) 5 Sanko Estate 1 tsubo = 3.3 sq m = 35.58 sq feet 1 tsubo = 3.3 sq m = 35.58 sq feet Sanko Estate 6

Office trends: Tokyo suburbs/major cities Tama Chiba Saitama Kanagawa Sapporo Sendai Nagoya Osaka Fukuoka New supply is concentrated in the center of the Greater Tokyo and the Greater Osaka. Limited new supply will continue to adjust market balance in other major cities. 1 1, 8, 6, 4, 2% 15% 1% 5% 15, 5, 5, 4, 3, 2, 1, (Unit: Yen/tsubo) Scheduled new supply 212 213 214 (Unit: tsubo) Vacancy rate Rent New supply nationwide '7 '8 '9 '1 '11 '12 '13 '14 211 212 Tama Chiba Saitama Kanagawa Sapporo Sendai Nagoya Osaka Fukuoka (Unit: tsubo) Tama Area Rents are on a moderate downward trend, but the vacancy rate for large- scale buildings has dropped by 5 points since the end of last year and recorded considerable improvement. Future conditions will be greatly affected by the large supply volume in the adjacent. Chiba Prefecture New supply has been contracting since peaking in 28. No major new supply is scheduled for 212 and the supply-demand balance will continue to improve. Whereas the vacancy rate is the highest for large-scale buildings in the Tokyo suburbs, it is the lowest for medium-scale buildings. There is great difference in market sentiment depending on the building size. Saitama Prefecture In addition to stable rent levels, the vacancy rate for large-scale buildings has been the lowest in the Tokyo suburbs for the last 4 years. Since Saitama Prefecture is a gateway to the Tohoku Region particularly from Tokyo, there are expectations for new demand stemming from the investment in post-earthquake revitalization. Kanagawa Prefecture With new supply continuing to decline since peaking in 29, the vacancy rate for large-scale buildings recorded a slight fall. New supply of over 46, tsubo is scheduled in 213, which is the largest volume in the past 5 years. Due to a high level of new supply in central Tokyo over the next 3 years, the scramble to find tenants may become more pronounced not only within Kanagawa Prefecture but also between Tokyo and Kanagawa. Sapporo The vacancy rate of Sapporo market for large-scale buildings has been the lowest among Japan s major cities since 29. There is a growing sense of stability in market conditions while rents are continuing to show a moderate fall. Market watches the impact of supply increase to the market balance. Sendai Market conditions have undergone great changes over the past year owing to the effects of the Great East Japan Earthquake. Although the vacancy rate for all building sizes fell significantly, that for large-scale buildings remained the highest among Japan s major cities. There is a great expectation for positive effects from the public investment aiming to restore the disaster area. Nagoya New supply will remain at a low level in 212 and the years following. The market balance is towards improvement. Although the vacancy rate for large- scale buildings has dropped below 1% for the first time in 3 years, the vacancy rate for medium-scale buildings is recording a slight increase. There is disparity in market sentiment depending on the building size. Osaka The continued decline in new supply will be bottomed out in 212 with a large supply volume coming onto the market in 213. There has been little change in rents and the vacancy rate in last few years, but their outlook seems to increase uncertainty. *Aggregate at the end of 211 (unit: tsubo) Fukuoka Current suppressed supply since 21 will continue into the future. The improvement in the market balance is also anticipated to continue. The disparity in the vacancy rates for large-scale buildings and medium-scale buildings has widened to become the largest among Japan s major cities. The vacancy rate for medium-scale buildings is approaching 2%, which is the highest among Japan s major cities. New supply as a percentage of stock (=new supply/stock) 3 year total supply as a percentage of stock for districts outside Tokyo 23 Wards shows that Kanagawa Prefecture has the highest ratio at 5.6%, followed by Osaka at 4.%, Sapporo at 2.8%, and Nagoya at 1.2%. New supply for the next 3 years will be concentrated in each central area of the Greater Tokyo Area ( and Kanagawa Prefecture) and the Greater Osaka Area. New Tokyo Tama Chiba Saitama Kanagawa Sapporo Sendai Nagoya Osaka Fukuoka 212 31, 19,6 5,5 2,4 9,8 22,4 4,1 213 113,1 1,9 46,7 1,3 4,6 68,3 1, 214 194,8 18, 28,9 3 Year Total 68,9 1,9 84,3 16,8 2,4 14,4 119,6 5,1 Stock* 11,1, 45, 5 38, 1,5, 59, 46, 1,2 2,99, 84, 3 Year Total as a % of Stock 5.5%.%.4%.% 5.6% 2.8%.5% 1.2% 4.%.6% 7 Sanko Estate 1 tsubo = 3.3 sq m = 35.58 sq feet 1 tsubo = 3.3 sq m = 35.58 sq feet Sanko Estate 8

Office Stock Tokyo Tama Chiba Saitama Kanagawa Sapporo Sendai Nagoya Osaka Fukuoka The Greater Tokyo Area accounts for 7% and account for 5% of regional concentration of Japan s office stock 12,, 9,, Office stock in terms of total leasable area (Unit: tsubo) 6,, 3,, Total 7,5 5, 2,5 2,2, 1 1 1 27, 15, 9, 25, 6 19, 2,2, 1 1 1 3, 17, 15, 3 76, 2 6,7, 2, 29, 15, 9 27, 2 65, 1,6 4 11,1, 45, 5 38, 1,5, 59, 46, 1,2 2,99, 84, Proportion of office stock by building size (Greater Tokyo Area and 5 major cities) Buildings 21% Buildings 22% Rent, vacancy rates and market size Rent for large-scale buildings (CAM charge inclusive) (Yen/tsubo) 18, 16, 14, 12, Buildings 57% Saitama Pref. Sapporo Tama Area Nagoya 12,, 9,, 6,, 3,, Total Kanagawa Pref. Osaka Fukuoka Chiba Pref. 2 4 6 8 1 12 14 16 18 Vacancy rate for large-scale buildings (%) Sendai 5,7 4 4 4 8 5 2 7 1,4 5 2,5 2 1 2 4 2 2 3 7 3 1,5 1 1 1 2 1 1 2 4 2 Total 9,7 7 6 7 1,4 8 5 1,2 2,5 1, Bubble size = Stock Office stock in terms of the number of buildings Office stock in Tokyo (Unit: tsubo) Tokyo Central 3 Wards Tokyo Central 5 Wards 1,, 1,4, 2,2, 1,2, 1,6, 2,2, 4,, 5,, 6,7, 6,2, 8,, 11,1, What is office stock Office stock in Japan s major cities Sanko Estate s office building information database covers the Greater Tokyo Area (, Tama Area, Chiba Prefecture, Saitama Prefecture, and Kanagawa Prefecture) and five major cities nationwide (Sapporo, Sendai, Nagoya, Osaka, and Fukuoka). The number of registered buildings is about 1, nationwide, with about 6, in the Greater Tokyo Area. Stock data, excluding the buildings smaller than medium-scale, is tabulated by the total leasable area and the number of buildings according to each geographic area and building size. Districts used for calculating office stock: Tokyo (3 Wards, 5 Wards, 23 Wards, Tama Area), Chiba Prefecture, Saitama Prefecture, Kanagawa Prefecture, Sapporo City, Sendai City, Nagoya City, Osaka City, Fukuoka City Building Size: leasable area per standard floor: >2 tsubo leasable area per standard floor: 1-2 tsubo leasable area per standard floor: 5-1 tsubo Definition and calculation method The total leasable area is the total area of leasable office space. It does not include common areas, floor space used privately or by the company that owns the building, or areas used for retail stores, restaurants or residences. There are numerous cases in which the total leasable area is unknown (undisclosed), such as in the buildings where some floors are used privately or in mixed-use buildings that incorporate retail stores. In such cases, the total leasable area is an estimated figure based on the leasable area per standard floor determined by Sanko Estate, the number of floors (above ground), and the efficacy rate. (Estimated) Total leasable area = leasable area per standard floor x number of floors (above ground) x efficacy rate (.8) The efficacy rate differs for each building, but.8 is the average (approximate figure) for all buildings registered in Sanko Estate s database. The vacancy rate reported in Sanko Estate s various market reports does not include buildings for which figures were estimated. Therefore, please be advised that vacant space/stock = vacancy rate is not applicable. Overall office stock The total office stock in medium-scale buildings or larger in Japan s major cities including the Greater Tokyo Area, Sapporo, Sendai, Nagoya, Osaka, and Fukuoka is approximately, tsubo in 19, buildings. Office stock nationwide In a comparison by district, the Greater Tokyo Area accounts for about 7% of the total stock in Japan s major cities in terms of both area and number of buildings and for over 5% in Tokyo 23 Wards. This corroborates the notion that office stock is concentrated in the Greater Tokyo Area and particularly in Tokyo 23 Wards. Each percentage for areas outside the Greater Tokyo Area is Osaka 15%, Nagoya 6%, Sapporo 3%, Sendai 2%, and Fukuoka 4%. Office stock in Of the office stock located within Tokyo 23 Wards, 6% of office stock in large-scale buildings and 56% of office stock when medium/large-scale and medium-scale buildings are included is concentrated in Tokyo Central 3 Wards. The concentrations for both building sizes in Tokyo Central 5 Wards are also above 7% respectively. Total leasable area (tsubo) Number of buildings 11,1, 9,7 Tama Area 45, 7 Chiba Prefecture 5 6 Saitama Prefecture 38, 7 Kanagawa Prefecture 1,5, 1,4 Sapporo 59, 8 Sendai 46, 5 Nagoya 1,2 1,2 Osaka 2,99, 2,5 Fukuoka 84, 1, Total 2, 19,1 Rent, vacancy rates and market size Relationship among rent, vacancy rate and market size The characteristics of Japan s ten major cities(districts) are compared. The rent and vacancy rate are represented by a vertical and horizontal axes respectively. Market size in terms of stock is expressed by the size of each bubble. The rent (CAM charge inclusive) for large-scale buildings in is the highest at 18,281 yen/tsubo, and the vacancy rate of 6.45% is the second lowest behind Saitama Prefecture. Conversely, the rent of 11,615 yen/tsubo in Sendai is the lowest among Japan s major cities, and the vacancy rate of 14.5% is the highest. If the bubbles in and Sendai are joined, a downward slope indicating an inverse correlation emerges. Rent* 18,281 6.45 Tama Area 12,476 7.21 Chiba Prefecture 12,748 11.9 Saitama Prefecture 14,132 5.44 Kanagawa Prefecture 13,35 1.28 Sapporo 12,17 7.28 Sendai 11,615 14.5 Nagoya 15,471 9.25 Osaka 15,66 9.98 Fukuoka 13,737 1.47 *Rent for large-scale buildings (CAM charge inclusive)(yen/tsubo) Vacancy rate (%) 9 Sanko Estate 1 tsubo = 3.3 sq m = 35.58 sq feet 1 tsubo = 3.3 sq m = 35.58 sq feet Sanko Estate 1

5, 4, Central Tokyo* Class A Office Rent Index *Tokyo Central 5 Wards and major office districts in surrounding areas Contracted rent (Unit: Yen/tsubo)(CAM charge exclusive) Central Tokyo Class A office buildings Tokyo Central 3 Wards office buildings At a 58% drop from the peak, rents for Class A buildings are significantly discounted 16 12 1 8 4 12% 1% 8% 6% 4% 2% % Office Rent Index Vacancy rate 2 21 22 23 24 25 26 27 28 29 21 211 Central Tokyo Class A office building stock Central Tokyo Class A Building Stock 1,5, tsubo Central Tokyo Class A Office Buildings (Q1 2 = 1) Office Buildings Building Stock 6,7, tsubo, Medium/ large-scale & Building Stock 11,1, tsubo, & Office Buildings Central Tokyo Class A Buildings Buildings > Buildings Area (unit:tsubo) 1,5, 6,7, 11,1, Share of Central Tokyo Class A Buildings 22% 14% Building count 13 1,5 9,7 Share of Central Tokyo Class A Buildings 9% 1% Market in the 3rd quarter of 211 Office Rent Index for Class A buildings in central Tokyo Like the Index for large-scale office buildings in Tokyo Central 3 Wards, Central Tokyo Class A Office Rent Index rose by 1 point in the 3rd quarter of 211. The index, which assumes the 1st quarter of 2 to be 1, was 66. Rent of Class A buildings in central Tokyo Compared with the peak recorded in the 4th quarter of 27, current rent levels have fallen to at less than half. Comparison of current rent levels (excluding CAM charges) with the peak: Class A buildings in central Tokyo: -58% (45,618 19,221 yen/tsubo) buildings in Tokyo Central 3 Wards: -45% (29,733 16,267 yen/tsubo) Vacancy rate for Class A buildings in central Tokyo The vacancy rate in the 3rd quarter of 211 remained on a downward trend from the previous quarter. Vacancy rate for Class A buildings in central Tokyo and large-scale buildings in Tokyo Central 3 Wards declined to 5.% and 5.2% respectively. Class A building stock in central Tokyo When compared with medium-scale and larger buildings (including large, medium/large and medium-scale buildings) in, Class A building stock in central Tokyo accounts for 14% in terms of area or about 1% in terms of the number of buildings. In a comparison with large-scale buildings Class A buildings account for 22% in terms of area and about 9% in terms of the number of buildings. 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. (www.websanko.com). -Rent index by building size -Year-on-year change in rent by building size -Rent of large-scale buildings (unit: yen/tsubo) Class A Office Rent Index Office Rent Index for Class A 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 buildings, it also publishes the vacancy rates and the stock. "Standard" Class A office buildings in the statistical model -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 Methodology of Class A Office Rent Index The methodology is the same as that used for Office Rent Index except that the subject of analysis is restricted to Class A buildings and data starts from the 1st quarter of 2. Class A buildings are selected from among those satisfying the following guidelines. They are selected periodically with the emphasis on each individual building s location and characteristics. (Each building name is not disclosed.) The cumulative number of buildings by the end of 211 was about 2 (including buildings that are no longer eligible due to aging, and buildings under construction), of which about 13 are currently eligible Class A buildings. Class A Building 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 construction: 15 years maximum, while major refurbishment is also considered. Facilities (as a general rule): Ceiling height 2.7m or more, individual air conditioning, high anti-seismic and environmental performance 11 Sanko Estate 1 tsubo = 3.3 sq m = 35.58 sq feet 1 tsubo = 3.3 sq m = 35.58 sq feet Sanko Estate 12

SAPPORO STATION Passengers 87,49/day 29 Major Terminals Sapporo Ekimae-dori Underground Walkway linking two commercial zones to revitalize the city. There are two lively commercial areas in the heart of Sapporo city. One is the Odori area, which has long been the center of commerce. It is characterized by department stores and fashion boutiques lining several inner city commercial zones. The other is an area around JR Sapporo Station redeveloped in 23. Since then, major commercial facilities, department stores, movie theaters, hotels and more were opened in this area. Both commercial areas are connected by the Sapporo Ekimae-dori Underground Walkway, which was established with the aim of promoting migration between the areas, as well as invigorating economic activity. The underground walkway opened on March 12, 211. It measures approximately 52m in length and 2m in width (actual pedestrian passageway is 12m wide). Sapporo Ekimae-dori Underground Walkway Three intersection plazas are located along the walkway, at Kita Odori, Kita Nijo, and Kita Sanjo streets, with a recreational space 4m wide created on either side of the 2m pedestrian passageway. The space can be used for mini concerts and events, or for posting tourist information or administrative announcements. These areas are also equipped with touch panels displaying underground walkway maps and public transportation timetables, and multi-functional toilets, so that anybody, including the elderly and those in wheelchairs, can move between both commercial areas in comfort regardless of the season and weather. The 12 hour pedestrian traffic along Sapporo Ekimae-dori (above ground as well as the underground walkway) on weekdays has grown from 29, before the opening of the walkway to 72, people at present. Approximately 8% of the pedestrians find the walkway a pleasant amenity (from the Hokkaido Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism, and Sapporo City research published in September, 211). With the completion of the underground walkway, there has been a rise in convenience, comfort, and safety, and the space has become a lively area full of pedestrian traffic. The general office market conditions of central Sapporo are stable, and the opening of the Ekimae-dori Underground Walkway is already having a positive effect on the market. Sapporo sees a lot of snowfall in winter. Therefore, office buildings connected directly to underground passageways that allow direct access to train and subway stations are highly convenient and advantageous in tenant demand. Falling vacancy rate in the Ekimae-dori area suggests its improved competitiveness as an office location. Based on information up to November 1, 211. Moreover, the perspectives used in this magazine are concept images, and may differ from the real thing. SENDAI STATION Passengers 74,672/day 21 Higher visitor numbers around Sendai Station and greater attraction as the gateway to Tohoku. With the opening of the Sendai Subway Tozai Line (referred to below as the Tozai Line) scheduled for completion in 215, the east exit of Sendai Station is set for redevelopment. The Tozai Line will connect Yagiyama Dobutsukoen on the southwest side of the city to the Sendai East Interchange area to the east via Sendai Station. This line is approximately 14km long and characterized in that it uses the linear motor system. The opening of this line will alleviate the long-endured rush hour traffic congestion through the city center from the east and west and also from the south-east, allowing for a further rise in visitor numbers to the Sendai Station area. Perched above the tracks at the East exit of Sendai Station, a six-story (above-ground) building complex with a total floor space of approximately 53,m2 and height of 3m is scheduled for construction. Twin buildings are also scheduled to be built. A hotel tower with a total floor space of 16,m2, height of approximately 6m, two basement levels and 14 stories above ground is scheduled to open in 217. A business tower with a total floor space of 22,m2, height of approximately 6m, and 14 stories above ground is scheduled to open in 218. The development of Sendai Station Building entails not only the provision of pedestrian walkways within JR Sendai Station and between the east and west sides but also the construction of Tozai train lines in the Sendai city area. The influence of this development will therefore go beyond the station vicinity and make the greater city area more convenient. This development has the potential to shift the geographic center of the commercial district around Sendai Station. In JR Sendai Station, planned East Exit will end current inconvenience of single ticket gate and improve the traffic. At the same time, the east to west passage will be widened to deal with the congestion caused by higher user numbers, making it more convenient. The improved access to the area east of the station will surely enhance the area s competitiveness in terms of office location. The impact on the larger area will be considerable following the opening of the Tozai Line. Improved access between central Sendai and business districts in the east such as Oroshimachi is sure to bring greater office demand in this area. Sanko Estate 14

STATION Passengers 381,74/day 21 The symbol of the capital Tokyo retains its heritage while advancing into the modern era. At Tokyo Station, the Marunouchi side and the east and the west side of the Yaesu exit side, are being developed. On the Marunouchi side, the Marunouchi Station House - a national treasure - is being preserved and restored, and (part of) the station facility is scheduled to open in June, 212. The Station House will have the station facility, a hotel, and a station gallery. In addition, JR East Travel Service Center will also be established, offering tourist information and currency conversion for overseas visitors. Around the new station, part of the old Tokyo Central Post Office is also being preserved as part of the planned development of JP Tower (provisional name) scheduled to be completed in the spring of 212, with the development designed to preserve the historic scenery. On the Yaesu side, the second phase of construction of Gran Tokyo North Tower and Gran Tokyo South Tower as well as work on the plaza in front of Yaesu station exit is underway. Following on the heels of the completion of the second phase of Gran Tokyo North Tower in the summer of 212, an elevated walkway connecting Gran Tokyo North Tower to the South Tower and a Gran Roof that will cover this walkway are scheduled to be completed in the autumn of 213. After completion, stores covering an area of approximately 2,m 2 will line the walkway. Furthermore, in the autumn of 214, a plaza of approximately 1,7m 2 will be created in front of Yaesu exit. There will be 13 bus stops and four taxi stands, strengthening the area s function as a transportation hub. Even now, an approximate average of 38, passengers (source: JR East Japan survey from 21) use JR Tokyo Station daily, and that number is sure to increase dramatically after the redevelopment. The Station House redevelopment project taking place on the east and Gran Roof concept drawing Source: JR EAST Restored Marunouchi Station House Source: JR EAST west sides of Tokyo Station is highly symbolic given that Tokyo Station is the gateway to the capital. From an office market standpoint, the Station House redevelopment should be seen as a symbol of overall change due to the many redevelopment projects taking place around Tokyo Station. In front of the Marunouchi exit, large buildings being reconstructed are changing the face of the office district every year. As the gateway to that area, the restored Marunouchi Station House will become a new symbol of the office district. Up to now, the Yaesu exit was somewhat dreary. However, with Gran Tokyo North and South Towers and the Gran Roof, its symbolism will be greatly improved. In addition, many large-scale projects underway in the Kyobashi district will come onto the market in 213. These buildings will greatly change the character of the office district on the Yaesu exit side which has relatively few large-scale buildings. Their influence on demand will also be watched. JP Tower and Marunouchi Station House Source: Japan Post Office With large-scale redevelopment around Shibuya Station, Shibuya will once again create a new era. To coincide with the project to move the Tokyu Toyoko line underground, several large-scale redevelopment projects will start around Shibuya Station, including Shibuya Station City Block and Shibuya Station South City Block. Among these, the leading project is the Shibuya Hikarie, a high-rise complex located on the site of the former Shibuya Tokyu Bunka Kaikan in front of the east exit and scheduled for completion in the spring of 212. Shibuya Tokyu Bunka Kaikan played a role in the post-war reconstruction. It was where Tokyo s first planetarium was located, and was a symbol of Shibuya as a popular cultural facility. Subsequently, Parco, Shibuya 19 and other fashionable buildings sprung up one after the other. As a trend-setting area of youth culture, it has become a district where young people from all over the country like to gather. Shibuya started to become noticed as an office area shortly before the year 2. High-rise buildings continued to spring up around the station, and cutting-edge IT and venture corporations started to gather there. The concentration of such businesses led to the area becoming known as Bit Valley, a word play on America s IT corporation base, Silicone Valley. Shibuya Station is one of the biggest terminals in the country, with eight train lines. It also has the biggest bus terminal in the metropolis, with more than 5 routes. And, in 212, with the redevelopment around the station, including Shibuya Hikarie, it is set to be transformed even further. First, the project to move the Tokyu Toyoko line underground will see those trains start running on the same tracks as the Tokyo Metro Fukutoshin line in 212. In the future, the Tokyo Metro Ginza line will be relocated to the east exit of Shibuya Station, making it even more convenient. To facilitate the movement of people from Shibuya Hikarie, there will be a walkway from the 2nd floor leading to the Shibuya Station ticket gates of the Tokyo Metro Ginza line (date of relocation unknown) and to JR Shibuya Station, and from the 3rd basement floor people will be able to come and go to the Shibuya Station ticket gates of the Tokyu Toyoko line/tokyo Metro Fukutoshin line. Furthermore, in the south and north of the building, there will be 4-person shuttle elevators, allowing people to move more quickly and comfortably. Movement to many areas will become much easier with the construction of multi-level pedestrian networks: people will be able to move towards Aoyama from the 3rd floor of the building; SHIBUYA STATION Passengers 43,277/day 21 towards JR Shibuya Station, Miyamasuzaka, and Route 246 from the 2nd floor; and towards Meiji Dori from the 1st floor. People will be able to move more freely, from floor to street, and from street to floor. The development of Shibuya Hikarie is drawing attention as a center of commerce and entertainment, but its influence on the Shibuya area as an office market should also be noted. As suggested by its previous moniker of Bit Valley, Shibuya as an office location is highly sensitive to the needs of, and has a unique attraction for IT venture corporations. On the other hand, the area has lacked sufficient office space suited to major corporations, with venture corporations graduating onto Roppongi and other areas when they grew in scale. In the area in front of the west exit, Shibuya Mark City, Cerulean Tower and other large buildings have increased the supply of large office space, but Shibuya Hikarie will be the first large building directly connected to the area in front of the station's east exit. Shibuya Hikarie will not only increase the supply of high quality office space that is lacking around the station, but it will also provide various traffic lines from the 19 Q FRONT Shibuya Mark City Tokyu Plaza 19-2 Cerulean Tower Shibuya Station Shibuya Hikarie station to the area around the east exit, influencing the entire area. Moreover, Shibuya Hikarie will also work to make the area more mature as an office site, which will help to keep venture corporations in the area even after they expand. The role Shibuya Hikarie will play will by no means be small. Photo source: Tokyu Corporation 15 Sanko Estate Sanko Estate 16

Osaka Station City OSAKA STATION Passengers 394,53/day 21 NAGOYA STATION Passengers 188,/day 21 With major redevelopment in front of Nagoya station, a highly convenient city space will be created. Redevelopment is progressing steadily in front of JR Nagoya Station. The first step in this development is the rebuilding of Dainagoya Building, which has been a symbol of Nagoya city ever since its completion in 1965. The new building complex is scheduled to be completed in 215 and upon completion will stand at approximately 19m and have four basement levels and 34 floors above ground. One year later, Nagoya Station New Building (provisional name) will be completed. It is scheduled to have a total floor area of 26,m2, a height of North area South area Nagoya Terminal JR Central Towers Royal Park Inn Nagoya Dai Nagoya Building 22m, six basement levels and 46 floors above ground. The new bus terminal will be located on the first floor of Nagoya Station New Building, with a walkway connecting Nagoya Station with the area to the north of the station on the 2nd floor, creating a bustling space integrated with JR Central Towers. In future years, these developments will be followed by developments scheduled for the area to the north of Nagoya Station New Building and for Meieki 4-chome. Nagoya Station New Building will not only provide office space but will also have lodging, commerce, child rearing, banking, and medical facilities among others, providing broad-based support for businesses. The creation of an attractive city space that sustains a variety of working styles will surely create new employment opportunities. The string of redevelopment projects will further accelerate the concentration of new high-rise office buildings in Meieki and will shift the gravity center of the office market towards Meieki. Due to the easy access to JR lines and Meitetsu lines, subway lines, and the Shinkansen. Nagoya Station is convenient not only for intra-city travel and commuting but also for long distance travel to Tokyo and Osaka. Therefore, offices directly connected to Nagoya Station is highly sought after not only in terms of location but also in terms of travel convenience. The large supply of office space in 27-29 has not yet completely filled. There may again be an oversupply of offices if the supply and demand balance doesn t recover soon. In any case, in terms of attracting tenants, the redevelopment projects will surely affect not just Meieki but also entire central Nagoya, including Sakae and Fushimi. The birth of the biggest terminal in western Japan will be the trigger that invigorates Osaka. JR Osaka Station was reborn as Osaka Station City on May 4, 211, pioneering the development of the area on the north side of Osaka Station, an area which is currently attracting attention as the last remaining prime real estate. Osaka Station City consists of the North Gate Building, which is situated above the station and on the station s north side, and the South Gate Building, which is essentially the renamed Acty Osaka southside terminal building following its expansion. It has a total floor space of about 5m 2, making it the largest complex in western Japan. The opening of JR Osaka Mitsukoshi Isetan and the specialty shop zone Lucua in the North Gate Building has brought in a lot of consumer traffic. On opening day, approximately 5, people visited these shopping areas. When South Gate Building which houses Daimaru Umeda and Hotel Granvia Osaka is taken into account, the total number of visitors on opening day exceeded 8, people. The JR Kyoto line, JR Kobe line, and Osaka Loop Line all go through JR Osaka Station, with subways and private railways also located around the station. Moreover, the Kyushu Shinkansen and Sanyo Shinkansen lines were directly connected in March 211, improving access between the biggest terminal station in western Japan and the wider area. As the first phase in the redevelopment of the area north of Osaka Station, the east area site covering approximately seven hectares will be completed in 213. Several buildings are scheduled to open, including a highrise office tower with three basement levels and 38 aboveground floors. This development is predicted to bring in close to business people to the area. The later second phase of construction is the redevelopment of the west area, which has an area of 17 hectares. A branch of the JR Tokaido line will be moved underground, and a new station will be established. The limited express train service will stop at the new station, improving access to Kansai Airport. In the Source: Osaka Terminal Building Corporation future, the area will be an intellectually creative space with a view to the world. With the completion of Osaka Station City, there is a gateway to the area around Osaka Station. As the redevelopment of the area north of Osaka Station progresses, its influence on the office market will be more keenly felt. When Grand Front Osaka opens in 213, the 2nd floor pedestrian deck will provide pedestrian access to Osaka Station. The building s newness (latest facilities) and superb convenience will ensure there is high tenant demand. Several large-scale buildings have been completed in the last few years in the area around Umeda Station, and the number of large-scale buildings to the north and south of Osaka Station has risen rapidly. Competition within the office district around Osaka Station (Umeda Station) as well as with the area south of Nakanoshima is growing markedly. The new Kyushu landmark JR Hakata City has shown an excellent start since completion. JR Hakata City opened on March 3, 211. With a total floor space of 2,m 2 spread over one basement floor and 1 above-ground floors, it is one of the largest-scale station buildings in the country. The building contains the large-scale Amu Plaza Hakata shopping center and the first branch of the Hankyu department store in Kyushu, Hakata Hankyu, as well as a commercial zone including a restaurant zone, and cultural facilities such as event hall and HAKATA STATION Passengers 99,6/day 21 Source: JR Kyushu rental conference rooms. The total number of visitors for the 185 days from the pre-opening day of March 2 to September 2 was 3.6 million (an average of 166, people a day). Total sales reached 39.8 billion yen. One of the main factors behind this high number was the opening of the Kyushu Shinkansen on March 12. In fact, a questionnaire revealed that over 3% of visitors were from outside Fukuoka prefecture and traveled to JR Hakata City on the Kyushu Shinkansen. At JR Hakata Station, large-scale reconstruction of the station building took place at the same time as the opening of the Kyushu Shinkansen, allowing the station precinct to successfully attract a large number of visitors. In addition, with the opening of the direct line to the Sanyo Shinkansen, Hakata Station has also improved transportation access to areas in west Japan. There are plans to actively broadcast the best that Hakata has to offer through further urban development activities and events in Hakata Station, and a big rise in visitors is sure to follow. The reconstruction of JR Hakata Station was timed to coincide with the opening of entire Kyushu Shinkansen lines. As there is no office floor in the building, its direct influence on the office market is limited at present. Opening of all the Kyushu Shinkansen lines will bring improved access to areas in southern Kyushu as well as enhance the convenience of the Shinkansen. As a result, the competitiveness of the surrounding area will likely enjoy a relative boost in the mid to long term. With the travel time between Osaka and Hakata being only 2 hours and 3 minutes by Shinkansen, the expansion of the Shinkansen network is highly advantageous for Osaka based companies as well as regional companies in case their branch offices cover southern Kyushu and Hiroshima area. Broadly speaking, Hakata Station s enhanced attractiveness has the potential to bring change to the characteristics and competitiveness of the Fukuoka office market. 17 Sanko Estate Sanko Estate 18

OFFICE MARKET DATA OFFICE MARKET DATA 25, 17,667 17,274 15,132 15, 15,73 14,598 5, CHIYODA Kyobashi, Yaesu, Nihonbashi 22 23 24 25 26 27 28 29 21 24,667 11.49% 1. MINATO 9.13% CHUO 5.59% 5. Data 2,93 17,713 11,727 Ginza 24,2 24 25 26 27 28 29 21 19,967 22,8 211 Tsukiji, Shintomi, Kayabacho 23 14,11 17,584 22,622 22. Higashi-Nihonbashi, Shinkawa 211 15. SHIBUYA Chuo Ward 21,429 SHINJUKU Nihonbashi-Honcho, NihonbashiMuromachi 1 floor >5 tsubo 15,524 75 47,7tsubo 12,958 6 45,1 45 28,7 27,8 29,7 26, 2,9 3 buildings: 2 tsubo or more buildings: 1 to less than 2 tsubo buildings: 5 to less than 1 tsubo From 212 new supply will increase markedly, and particularly from 213 supply is expected to exceed 45, tsubo for two years successively. 11,6 15 1 tsubo = 3.3 sq m = 35.58 sq feet 27 212 213 214 25, 23,294 17,824 14,97 15, 15, 18, 18,335 AKIHABA 14,155 RA 22 23 24 25 26 27 28 29 21 211 23 24 25 26 27 28 29 21 211 16,367 13.78% 11.82% 1.94% 1. 8.93% TOK YO CH O 18,283 15,964 YU RA KU 39,333 4.37%. 5.99% 5.. 22 23 24 25 26 27 28 29 21 211 22 23 24 25 26 27 28 29 21 211 117,4 95,3 tsubo 8, 1 M TA 74,1 15,47 82,1tsubo 68,2 14,323 6, 9, Shibaura, Kaigan 17,972 8,2 I H AC 17,425 17,762 1 floor >5 tsubo 1, 15, 17,262 Hamamatsucho, Takanawa 1 floor >5 tsubo 15,64 Roppongi, Azabu 5. 28, 21,82 15. Kojimachi, Bancho 1. Marunouchi, Otemachi 19,161 IMPERIAL PALACE Shinbashi, Toranomon 17,448 22 15. 14,388 17,933 15,781 5, 5, 13,123 24,75 14,986 17,874 Minato Ward 2,482 17,277 15,93 HAMAM ATSUCH O 2,25 SHINAGAWA Sotokanda, Iwamotocho 16, 211 Akasaka, Aoyama Uchikanda, Kajicho 21 25, Iidabashi, Kudan 29 35, Chiyoda Ward 28 12,962 13,695 46,9 31,5 for the past two years has been in the tsubo range, but a large increase in supply of more than 9, tsubo is expected in 212, mainly in Otemachi and Marunouchi areas. 6, 37,4 35,9 37,9 36,2 36,9 remained at a relatively low level of tsubo range since 29, however large-scale urban redevelopment and reconstruction projects will be completed one after the other over the next three years and the supply volume will markedly increase. 21, 14,9 27 19 Sanko Estate 26,1 4, 28 29 21 211 212 213 214 1 tsubo = 3.3 sq m = 35.58 sq feet 27 28 29 1 tsubo = 3.3 sq m = 35.58 sq feet 21 211 212 213 214 Sanko Estate 2

OFFICE MARKET DATA OFFICE MARKET DATA Shinjuku Ward Waseda, Kagurazaka 16,356 14,759 14,57 5, DAN OBA B A 15, TAK A 14,177 24 25 26 27 28 29 21 211 23 24 25 26 27 Yotsuya, Ichigaya 16,35 11.85% 1.16% 9.8% 1. 17,58 17,5 12,75 16,365. 23 24 25 26 27 28 29 21 Yoyogi, Sendagaya 12.45% GI YOYO YOYOGI 22 23 24 25 26 27 27 年 28 年 21 211 1,4 8, tsubo 2,3 211 年 212 年 213 年 27 28 29 21 7,266 8,399 211 212 213 214 With robust demand for call centers and orderly new supply of one to two buildings per year, there is a sense of stability in the market balance. The vacancy rate for large-scale buildings is around 7 or 8%, and the vacancy rates for both medium/large-scale and medium-scale buildings have remained in the low to mid teens. Sendai AJU KU HAR 13,2 15, 18,988 11,615 1,589 8,959 19,486 21,266 1,622 U IS EB 22 23 24 25 26 27 28 29 21 22 211 23 24 15. 25 2 9.1 % 7.46% 25 26 27 28 29 21 211 16,976 12,59 14,2 18.% 14.5% 13.75 % 15 9,61 5 9,99 8,457 1 23 24 25 26 27 28 29 21 211 Itsutsubashi 22 23 1 floor >5 tsubo 25, 35, 24 25 26 27 28 29 21 211 1 floor >5 tsubo 23,1 tsubo 21,4 9,38 Ryutsu, other areas 11,5 6,356 14,7 18,5 15, 12,56 8,461 25, 1,715 22 Eki-Higashi Ichibancho 5 21,573 5.17% 5.. 8,329 14,734 Ebisu, Hiroo 1. 17,723 9,754 Ekimae-Honcho SHIBUYA 5, Izumichuo 5, Shibuya, Dogenzaka 25,2 9,159 9,12 1 15,5 15, 2,578 19,64 16,462 7,195 2, 8,752 1,3 214 年 9,728 7,75 4,8 21 年 Hiragishi, Sumikawa, Toyohira, Fukuzumi 9,633 2, 29 年 Odori-Nishi 5,6 4, 4,7 29 1 floor >5 tsubo 6, 6, 28 15,619 16,191 14,14 1,817 36,1tsubo 13,3 Shiroishi, Shin-Sapporo 8, 7,623 Ekimaedori 7.28% 25, 17,5 9,874 O POR SAP Kencho 19,5 8,9 47,7 15.38% 35, Sakuragaoka, Nanpeidai 1,433 Odori-Higashi 1. 1 floor >5 tsubo Shibuya Ward 7,742 211 211 45, 1,726 6,455 15.. 22 21 75, 15, 5. 6, development projects around Shinjuku Station continue to reach completion. New supply is expected to decline from 213, but it is uncertain whether the current high vacancy rate for large-scale buildings will turn downward. 1 12,756 14,378 29 Hatsudai, Honcho, Sasazuka 28 5. 13,375 7,514 2. I GA YA 22 HI 15,573 IC SHINJUKU 22,375 23 BA SH O B KU IID A O 22 Nishishinjuku 15. Shinjuku, Kabukicho 6,794 12,767 Maruyama, Kotoni 5, 19,71 9,172 8,29 Kitaguchi 12,17 11,835 Kita 24 jo, Asabu Motomachi, Sakaemachi SENDAI 1,9 Sapporo 15, 15, 25, Takadanobaba, Okubo 11,754 8,5 12,7 The supply volume has remained at a relatively low level in recent years; however, three large-scale buildings will be completed in 212. This will be the largest annual supply volume coming onto the market for the past five years. 15, 8,4 7,3 2,4 2,8 21 Sanko Estate 5, 8 5, 27 28 29 21 211 8,8 212 213 214 1 tsubo = 3.3 sq m = 35.58 sq feet 9 27 28 29 1 tsubo = 3.3 sq m = 35.58 sq feet 21 211 212 213 214 The vacancy rates for large-scale and medium/large-scale buildings have significantly fallen. This is largely due to the recovery-related demand after the disaster as well as increased preference to new and large buildings with the concern about their earthquake resistance. Sanko Estate 22

OFFICE MARKET DATA OFFICE MARKET DATA Shinosaka-Kita 16,338 Osaka Senrichuo 13,263 15,343 New supply in 212 will again be relatively low at around tsubo, while the vacancy rate for the past two years has remained at a high level of over 1%. just short of 7, tsubo is scheduled for 213 and underlying supply pressure will rise again. Esaka O SA Nagoya 15,471 15, 9,79 SHIN 14,424 1,624 KA 12,321 Toyohashi 12,451 1,33 Meieki 17,762 5, 15,562 13, 22 23 24 25 26 27 28 29 21 9,995 Sakae 1 16.53% 15. 8,91 16,165 YA GO NA 1 1,33 11,12 12,33 2. 9,817 211 15,155 13,7 Shinosaka-Minami Fushimi 15.28% 13,468 Umeda Minamimorimachi 18,333 15,666 Kyobashi 13,778 11,686 A OS Yodoyabashi 12,918 11,27 Noda, Fukushima 1,733 1,335 7,888 Awaza, Nishinagahori 11, Honmachi 11,793 1,83 Nagahoribashi 14,47 14,519 25 26 27 28 29 21 NAMBA 1,631 214 年 22 23 24 25 26 27 28 29 21 9,587 15.16% 9,814 24 25 26 27 28 29 21 211 1 floor >5 tsubo 68,3tsubo 26,7 6, 39,3 26 27 28 29 21 211 27 29 21 211 12,769 9,753 12,54 9,384 12,428 1,135 29, 22,4 28 Ekimae 25 Yakuin, Watanabedori 12,45 28,8 1,7 4,2 4,1 1, 24 Ekihigashi 11,848 4, 23 13,941 8,1 22 1,274 23. 7,894 Tenjin 11,35 5, 3,9 11,833 27,8 1 floor >5 tsubo 15,524 1.47% 5. 57,1 4, 14,396 19.31% 1. 75,5 9.98% 14,45. 14.26% 13.79% 211 8, Momochihama 15. 16,255 Fukuoka 5. 212 213 214 27 23 Sanko Estate 213 年 1 Tennoji Nanba 1 212 年 1, 1. 211 年 2. 211 2. 9,568 15. 21 年 13,737 11,517 9,898 22 29 年 5, 1,969 9,334 24 28 年 12,333 12,45 23 27 年 In complete contrast to the fund bubble period when there was a continual annual supply of more than tsubo, there has been a supply adjustment of less than tsubo since 211. From 215 several large projects are expected to complete in front of Nagoya Station and competition to attract tenants may once again heat up. Gofukumachi 11,36 22 7,948 Shinsaibashi 21,7 5, 9,994 9,224 15, 9,14 11,672 9,673 4,6 8,532 15,66 15, 9,215 Tanimachi 9,719 8,974 12,32 1,962 1,633 12,78 11,985 4,4 7,737 1 floor >5 tsubo 43,7 211 8,683 21 9,494 14,624 Yotsubashi 15,9 8,6 29 Sakaisuji-Honmachi 9,215 OBP 12,118 Nishikuhonmachi 9,93 16, 9,442 28 9,8 1,85 27 7,2 12,976 26 Tenmabashi I 1,183 12,23 25 13,775 1,68 ASH KYOB 12,779 Higobashi 24 Nakaku 4, 2,234 23 38,6 15,7 19, 5, 14,32 22 Kitahama KA. 1,331 12,945 HAKATA Dojima, Nakanoshima Nagoya eki nishi 5. 11,5 9,616 13,639 9.25% Chikusa 11,151 1. 1 tsubo = 3.3 sq m = 35.58 sq feet 28 29 1 tsubo = 3.3 sq m = 35.58 sq feet 21 211 212 213 214 The market condition is continuously affected by the stagnation caused by the large volume supply in 28 and 29 as well as the fall in demand following the Lehman shock. Although new supply has been low since 21, improvement in the market balance has been weak, and the elevated vacancy rate continues to be high. Sanko Estate 24