Smart city Tokyo and what is aheadNovember 27, 2017 / By
A lounge area, cafe, lockers, flexible workstations, phone booths, and meeting spaces: these were just a few of the things that I noticed when I was interviewing for a job with JLL.
Attractive office space is considered crucial to attract the best talent – in particular, the millennial generation.
At JLL, I found a model workspace where accessibility, design, and amenities are found – reflecting some of the popular trends from multinationals fitting out their workspaces to attract global talent.
Tokyo is ranked second for knowledge and innovation among some of the highest-performing cities in 2017 (Decoding City Performance 2017 Report). Both public and private sectors have put in the effort to push innovation to boost economic growth.
With the highly anticipated Tokyo 2020 Olympics just a few years away, construction for prime and flexible space will continue in the office market.
Figure 1: Tokyo Grade A Supply and DemandSource: JLL Research
Grade A office space in the major five wards of Tokyo has increased from 2.5 million to 8.0 million square metres from 2000 till today.
The overarching skyscrapers and structures are the first things that catch your eye in Tokyo’s CBD. These tech-driven buildings are eco-efficient and stylish at the same time.
Other firms in Tokyo have also taken similar steps to ensure the same for their buildings, and this has changed the city’s landscape dramatically. Well-designed, eco-efficient, and earthquake-proof structures are in high demand in the ever-evolving city of Tokyo.
Now, even taller and fancier skyscrapers line up along the skyline of Tokyo in traditional office areas like Marunouchi. Such developments are expected to continue full speed into 2018-2019 throughout all five wards of Tokyo’s CBD.
Office location attracts talent
Firms are relocating to attract the best talent with top office locations. The launch of startups and the rigorous build-up of the innovation economy in Tokyo has led to demand for flexible workspaces and buildings with integrated artificial intelligence and virtual reality.
Cutting edge technology and the spillover effect from leading multinational companies is driving demand for new office space.
Demand for prime office space in Tokyo remained high, with the office vacancy rate at 3.0 per cent and rental prices at 36,605 JPY/tsubo per month in 3Q17.
Going forward, workplace reforms and other public initiatives by the government are likely to increase office transactions in Tokyo.
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