Sanko Estate, a major real estate company, and Morito Tsutsumi, a professor at the University of Tsukuba, have found that amenities such as lounges and rooftop terraces that increase comfort have a positive effect on rents and vacancy rates in office buildings. .The research group believes that there is a heightened awareness of the need for quality in the Japanese office market, as in Europe and the United States.
According to Sanko Estate, the 'flight to quality' of office buildings is becoming more pronounced around the world.As hybrid work spreads, it refers to the tendency of companies to move to higher quality office buildings to encourage employees to come to work. has an 2019% premium over the average rent in surrounding submarkets*.
*Cushman & Wakefield (2020) Do amenities still matter in a post-COVID-19 world? The Edge Magazine, Volume 7, pp 26-31.
In Japan as well, the number of cases of relocating to buildings with enhanced amenities while reducing floor space is increasing. investigated.
The research group defines service facilities such as lounges, rooftop terraces, day care centers, and fitness facilities in office buildings as amenities. We investigated the effects of amenities on rents and vacancy rates for 5 standard rental office buildings with a total floor area of 2015 square meters or more and floor space of 1 square meters or more.
As a result, it was found that buildings with amenities had 6.5% higher rents and 0.8 percentage points lower vacancy rates than buildings without amenities. Estimated year by year, rents had a positive effect of 1-2019%, except for 4.5.The research group believes that the vacancy rate in 7.6 was extremely low and the rent was soaring, so the effect of amenities did not appear.
Until 2019, there was no significant effect on the vacancy rate, but from 2020, when the corona crisis began, the effect of amenities began to be seen, and it was 2022 points lower in 2.3.With the vacancy rate rising due to the corona crisis, it seems that companies have chosen properties with amenities, and in Japan as well, the "flight to quality" is affecting the rent and occupancy rate of individual office buildings. It was revealed.The research group believes that there is a possibility that the market will become more polarized depending on the presence or absence of amenities.
