2023 Volume 78 Issue 5 Pages I_263-I_274
This study aims to clarify the impact of the agglomeration of business activities and buildings on office rents, along with their changes over time. An analysis of office market data from the first quarter of 2000 to the fourth quarter of 2021 demonstrates that the business activity aggregation positively impacts rents, while excessive building density has a negative effect. The results indicate no specific changes due to COVID-19, suggesting that the impact of aggregation depends considerably on market conditions such as rising or falling rents. The findings reveal the existence of economies and diseconomies of agglomeration in the Tokyo office market and highlight the importance of intensive land use. However, the impact of COVID-19 on the market structure may still be latent, the market trends require close monitoring in the future.
