Recent years have seen flexible offices*1 emerge as a popular solution to the demands created by the introduction of a wider range of working styles such as remote working. Despite this uptick in interest, flexible offices remain under-represented in the Tokyo office market in comparison to other major cities in Asia Pacific.
We believe the major factors behind the relatively low market share of flexible offices in Tokyo are: 1. the office contract structure; 2. fewer entrepreneurs; and 3. low vacancy rates. However, the factors that have prevented flexible offices from truly taking root in Japan are gradually undergoing changes which are rendering them less significant.
Furthermore, the rapid emergence of remote working as a result of the COVID-19 pandemic is serving to further accentuate the popularity of the flexible office as an alternative location for teleworking. Therefore, flexible offices will play a more prominent role within the Tokyo rental office market in the future.
*1 Offices such as co-working offices or serviced offices that do not necessarily require the signing of lease contracts, and are primarily used under the auspices of facility use contracts