Outlook 2023 Japan

TOKYO

NEW SUPPLY

NEW SUPPLY (TSUBO)

300,000

 Large supply is expected to enter the C5W market in 2023 and 2025.​  Key projects include Azabudai/Toranomon Hills (167,590 tsubo), Shinagawa New Development (202,170 tsubo), and Shinjuku Station front redevelopment (130,590 tsubo). ​  Rising construction costs continue to add pressure to development margins. Office construction costs have increased by 34.3% since 2011, and by 13.9% since 2019, before the pandemic.​

FORECAST

250,000

200,000

150,000

100,000

50,000

0

2020

2021

2022F

2023F

2024F

2025F

2026F

Source: Cushman & Wakefield