Plagued by high vacancy rates and high maintenance costs, Japan’s fourth tallest building is looking for a hotel to occupy its empty floors.
The Osaka Prefectural Government Sakishima Building is 40% vacant, with the remaining space largely taken up by government departments and private companies. The 55-storey building is inconveniently located on a man-made island in Osaka Bay with poor transport options. Additional concerns about earthquake risks have deterred potential tenants.
Osaka Prefectural Governor Ichiro Matsui announced that the government is considering appealing to a hotel operator to take up the vacant floors. The prefecture spends approximately 400 million Yen per year maintaining the building. If the 7th ~ 17th floors are occupied by a hotel, the building’s occupancy rate could reach 80%.