Ageism rife in rental market, Sapporo hotel converts rooms to office space, and Dentsu confirms decision to sell Shimbashi HQ. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Over 65s face tough times as tenants
Planning to continue renting into your retirement? You might be in trouble. According to R65 Fudosan, a rental agency specializing in finding homes for renters over the age of 65, only 5% of rental listings will allow senior tenants. The brokerage reported that over 10% of their clients had seen their rental applications rejected at least five times on different properties. Other issues they face include being limited to the worst properties, such as stigmatized apartments, older buildings, flats with no baths, or no sunlight. In other words, places that cannot easily find tenants.
Sapporo hotel rooms converted to offices
Keio Prelier Hotel Sapporo has converted their hotel rooms on the 3rd floor to flexible rental office suites, with rentals starting from July 1. With limited tourism, the hotel operator started a trial run in October 2020, converting six rooms to offices. With over 100 office room bookings each month, they have decided to expand their offering. The office suites can be rented for terms of between 6 ~ 24 months. Monthly rents for the 20 and 23 sqm office rooms will range from 150,000 ~ 180,000 Yen (approx. US$1,355 ~ 1,625).
Dentsu confirms decision to sell HQ
On June 29, advertising giant Dentsu Group confirmed their plans to sell their Shimbashi head office building to an unnamed buyer. Rumors of the sale first came to light in January. The 210-meter tall building with a total floor area of 231,700 sqm is expected to fetch as much as 300 billion Yen (approx. US$2.7 billion), which would make it Japan’s most expensive single-building sale. A contract of sale is expected to be signed before the end of the year. After the sale, the company will lease back a portion of the building. About 20% of the company’s staff currently commute to the office, with the rest doing remote work.
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