Historic Kudan Kaikan redevelopment plans announced

On September 21st, the Kanto Local Finance Bureau announced that Tokyu Land had won the competitive bidding process for the redevelopment of the Kudan Kaikan building in central Tokyo. The bidding price will be announced after Tokyu signs the contractural agreement in March 2018.

The developer will lease the 8,700 sqm block of land under a 70-year fixed-term and will build a high-rise office tower on the site. The north-eastern corner of the original Kudan Kaikan building will be preserved and retrofitted using a base-isolation system (menshin-kozo).

Japan’s supply of new office space hits lowest level since 1980

According to the Japan Real Estate Institute, 1.35 million square meters (approx. 14.5 million sq ft) of new office space was supplied across the country in 2016, down 25% from 2016 and the lowest level seen since 1980. 84% of the new supply was centered in Tokyo’s 23 wards.

Sapporo, Sendai, Saitama, Kyoto and Kobe saw no new office buildings supplied last year, although there are several new buildings planned for completion over the next two years. Kyoto City, however, has no new office supply planned for the near future. Kyoto is reportedly suffering from a severe shortage of office space with office brokerage Miki Shoji reporting a current office vacancy rate around 2%, down from 12% seen in 2010.

Onsen and retail complex near new Toyosu Fish Market in jeopardy

The operator of a planned onsen, hotel and retail center to be built next-door to the Toyosu Fish Market in Tokyo has announced that they may withdraw their plans due to concerns about feasibility. The proposed ‘Senkaku-banrai’ center would include a 24hr hot spring bath, hotel and 200 restaurants and stores, with a forecast for 1.9 million annual visitors.

Shinjuku office vacancy rate drops to 1% range

The office vacancy rate across Tokyo’s five central business districts of Chiyoda, Chuo, Minato, Shinjuku and Shibuya dropped to 3.22% in July, down 0.04 points from June and down 0.72 points from July 2016. This is close to the record low of of 3.03% reported in April 2008 and down from a high of 9.43% seen in June 2012.

The vacancy rate in existing buildings (excluding new construction) was 2.87% in July, down 0.74 points from last year.

In Shinjuku ward, the vacancy rate was 1.68%, down 0.06 points from the previous month and down 1.30 points from last year. The vacancy rate dropped to the 1% range in May 2017.

265m tall tower for Toranomon Hills district

More details have been released on the Toranomon Hills Station Tower which will be built on the north-west side of Toranomon Hills in central Tokyo. The building height will be 265 meters, which is 18 meters taller than the neighbouring Toranomon Hills tower and 17 meters taller that Tokyo Midtown.

Construction of the 49-storey tower is scheduled to start in 2019 with completion by 2022.