Real Estate Revitalization Model Focused on Small- and Medium-Sized Office Buildings in Central Tokyo

「Although the number of properties sold declined during the period, sales and profit increased year on year as a result of selling larger properties and highly profitable newly built buildings. Property acquisitions also substantially exceeded the previous year’s level while we monitored changes in market conditions, making steady progress toward sustainable growth.」

「With the addition of the Otake Kenso Group to our Group, our in-house structure covering planning through construction in the Replanning business will be further strengthened, enabling us to provide higher-quality, higher-functionality office spaces and other products consistently and promptly.」

「During the period, property sales totaled 38, including 2 New York projects and 3 fractional ownership products, an increase of 13 from 25 in the previous fiscal year. As a result, both revenue and profit increased. In the next fiscal year, in addition to further progress in the New York real estate revitalization business and the real estate specified joint enterprise business, we will expand our business scope through entry into the Replanning business in Osaka and the development of residential properties, enabling us to meet an even broader range of customer needs.」

「In this business environment, our Group’s office building business is focusing on developing real estate products aligned with social value, including office buildings capable of accommodating diverse operating styles and office buildings that have obtained environmental certifications.」

「During the period, acquisitions progressed at a pace exceeding the plan as a result of cooperation among the divisions of the office business and a strengthened acquisition structure. The company sold 25 properties, including 2 New York properties and 1 fractional ownership product, and maintained a high segment profit margin of 30%.」

「During the period, acquisitions progressed at a pace exceeding the plan as a result of cooperation among the divisions of the office business and a strengthened acquisition structure. The company will continue to strengthen acquisitions for product development and sales in the next fiscal year. Although sales declined by 1 property year on year to 20, the profit margin remained high at 30%.」

「① In the Replanning business, we provide integrated, one-stop real estate services from building acquisition through revitalization and utilization planning, construction work, tenant attraction, rent arrears guarantee services, management, sales and subsequent building operations. During the period, acquisitions and sales progressed at a pace exceeding the plan. In product development, we worked with the various divisions of the office business to reflect customers’ true needs in the field in our products, and used our locally rooted leasing capabilities to upgrade them into high-occupancy, high-value-added real estate products, which we sold to domestic and overseas customers. … Sales during the period totaled 14 properties, unchanged from the same period of the previous year, while revenue and profit increased year on year.」

「As of the end of the period, acquisitions, including contracted properties not yet settled, were progressing at a pace 20% above the level before the COVID-19 pandemic. … Sales will gain momentum from the second quarter onward this fiscal year, and full-year revenue is expected to increase 10% from the previous fiscal year. Sales are currently progressing steadily, and there is no change to the full-year sales plan.」

「In the Replanning business, we provide integrated, one-stop real estate services from building acquisition through revitalization and utilization planning, construction work, tenant attraction, management, sales and subsequent building operations.」

「For example, in December we worked closely with the leasing brokerage division to sell 5 office buildings in Tokyo to investors at near-full occupancy. We continued to manage these 5 properties after the sale, and they obtained certification under the Building Energy-efficiency Labeling System, “BELS,” in January 2023.」

「① In the Replanning business, we have brought all processes in-house, from building acquisition through value-enhancement planning, tenant placement, sales and post-sale support. Sales during the period progressed steadily against a backdrop of strong investor appetite. Meanwhile, we are actively, though selectively, acquiring properties while assessing the impact of macroeconomic fluctuations on real estate market conditions and interest rates. In product development, we are anticipating changes in cities, offices and working styles, responding to hybrid work, and aiming to create offices that will be selected even in the new normal.」

「Sales during the period progressed steadily against a backdrop of strong investor appetite. Meanwhile, we are actively, though selectively, acquiring properties while assessing the impact of macroeconomic fluctuations on real estate market conditions and interest rates. In product development, we are anticipating changes in cities, offices and working styles, responding to hybrid work, and aiming to create offices that will be selected even in the new normal. Through cooperation with the leasing brokerage division, we attracted tenants even amid the COVID-19 pandemic, completed high-occupancy, high-value-added real estate products, and sold them to meet the expectations of a broad range of domestic and overseas customers. In addition, in our real estate revitalization business in New York, we sold a property under development for the first time to meet customers’ needs to diversify their asset portfolios. Including this New York property, sales in the Replanning business during the period totaled 10 buildings, up 2 from the same period of the previous year.」

「① In the Replanning business, we have brought all processes in-house, from building acquisition through revitalization planning, tenant placement, sales and post-sale support. Sales during the period progressed steadily against a backdrop of strong investor appetite. Meanwhile, we are proceeding cautiously with selective property acquisitions while assessing trends in the leasing market and other factors. In product development, we aim to create offices that will be selected even in the new normal by anticipating changes in cities, offices and working styles. Setup offices, in which part of the interior is installed in advance, have been effective in attracting tenants. Through cooperation with the leasing brokerage division, which has an extensive branch network in central Tokyo, we continued to attract tenants even amid the COVID-19 pandemic, completed high-occupancy, high-value-added real estate products, and sold them to meet the expectations of a broad range of domestic and overseas customers. As a result, sales in the Replanning business progressed steadily at 18 buildings, with revenue and profit both increasing substantially year on year.」

「① In the Replanning business, we have brought all processes in-house, from building acquisition through revitalization planning, tenant placement, sales and post-sale support. Sales progressed steadily in the second quarter against a backdrop of strong investor appetite. Meanwhile, we are proceeding cautiously with selective property acquisitions while assessing trends in the leasing market and other factors.」

「① In the Replanning business, we have brought all processes in-house, from building acquisition through revitalization planning, tenant placement, sales and post-sale support.」

「As examples, we successively opened next-generation setup offices, including WEEK, Japan’s first office available for use by the day of the week, launched in July; Art Office “A YOTSUYA,” featuring wall art with a Brooklyn theme, in November; and “Ginza Quint,” a virus-control office incorporating social-distancing layouts and state-of-the-art equipment, in December.」

「As a specific example, in July we began offering WEEK, which allows customers to contract for our setup offices by the day of the week. In November, we held the grand opening in Yotsuya, Shinjuku-ku, of our first single-building shared office, Creative Art Office “A Yotsuya (エーヨツヤ),” comprising 22 rooms with mural art as its theme.」

「In acquisition, we are carefully selecting properties while assessing the direction of a market in which caution has intensified amid the COVID-19 pandemic. In product development, we are increasing our sensitivity to market trends, including feedback received daily from tenants, accurately capturing changes in offices, cities and working styles, and aiming to create offices that will be selected even amid the new normal based on new values.」

「In our core real estate revitalization business, our proprietary division-linked business model, which reflects the knowledge and experience developed in the field by the real estate services divisions in product development and maximizes the appeal of buildings, has continued to deepen. As the revitalized properties received strong evaluations from customers, the number of buildings sold rose substantially to 43, up 12 from the previous fiscal year. Revenue reached a record high, and profit also set a record high as margins improved, driving the Group’s overall performance.」

「In product development, we accurately capture the evolution of future offices, cities and working styles. The concept of design is also evolving from form and function to style and scene, and we will provide new, high-value-added products that tenants have not yet recognized as needs, with the aim of creating products and services that design the way people work.」

「① In the Replanning business, our proprietary business model for maximizing the appeal of buildings has deepened by creating added value in sequence through our comprehensive capabilities developed in building management, leasing brokerage and sales brokerage across every stage of acquisition, product development and sales.」

「① In the Replanning business, our proprietary business model for maximizing the appeal of buildings has deepened by creating added value in sequence through our comprehensive capabilities developed in building management, leasing brokerage and sales brokerage across every stage of acquisition, product development and sales. We have built deep relationships of trust with building owners, who consult us first when considering asset replacement and other matters and increasingly sell properties directly to us, expanding our proprietary property acquisition. In product development, we carry out renovations that accurately reflect tenant needs and revive buildings as high-value-added properties combining functionality and comfort. In sales, we use sales channels developed in cooperation with our regionally based real estate services divisions, adding the history, future potential and social value of the surrounding area to the property’s value before selling it to asset owners and wealthy individuals.」

「In this environment, our Group has made the revitalization and utilization of small and mid-sized office buildings in central Tokyo its core business, and has worked earnestly and sincerely from the customer’s perspective to respond quickly and exceed expectations in resolving building owners’ various complaints, inconveniences and concerns regarding their real estate.」

「In product development, we place safety and regulatory compliance at the foundation, and fully utilize knowledge accumulated in leasing brokerage and building management. We clearly define the revitalization concept and prospective tenants, and revive small and mid-sized buildings as attractive, high-quality properties through tenant-focused renovations, including setup offices with high-quality interiors that reflect changes in society and tenant needs, conversions to optimal uses that bring vitality to the surrounding area, open and comfortable waterfront and rooftop terraces that can also serve as social spaces, and offices evolving from workers’ perspectives through the use of IoT.」

「In the Replanning business, we have built strong, deep relationships of trust with building owners by working as a company to resolve all of their concerns in the field of real estate services, including building management, leasing brokerage and sales brokerage. As a result, more owners are consulting us first when considering asset replacement and are selling properties directly to us, increasing our proprietary property acquisition.」

「In product development, we clearly define the revitalization concept and prospective tenants while fully utilizing the knowledge accumulated in leasing brokerage and building management. We revive small and mid-sized buildings as attractive, high-quality properties through tenant-focused renovations, including setup offices with high-quality interiors tailored to changing tenant needs, conversions to optimal uses that bring vitality to the surrounding area, and open, comfortable rooftop terraces.」

「In the Replanning business, we clearly define each building’s commercialization concept and the prospective tenants, and revive small and mid-sized buildings as attractive, high-quality properties through tenant-focused renovations, including changes to the optimal use of a property to bring vitality to the surrounding area, setup offices with interiors completed before tenant recruitment, comfortable, inviting rooftop terraces, and safety-focused renovations emphasizing seismic resistance and regulatory compliance. In cooperation with the real estate services business, we maximize earnings and add the area surrounding each building’s history, future potential and social value to the property’s value before selling it to asset owners and wealthy individuals. Creating products that convey value from the perspective of both occupying tenants and building purchasers leads to consistently high margins. As a result, 22 properties were sold during the cumulative third-quarter period, an increase of 7 from the same period of the previous year.」

「We acquire office buildings whose profitability has declined or which require equipment upgrades, renovate them to specifications that meet social needs, and maximize the value generated by the real estate. We then sell the resulting high-income-producing office buildings to asset owners and wealthy individuals.」

「We operate a real estate revitalization business for used office buildings by successively applying the knowledge, expertise and experience developed through providing these diverse services to the acquisition, revitalization and sale of buildings that deteriorate to some extent each year. We revive used office buildings as attractive, high-quality properties by carrying out tenant-focused renovations, including changes to the optimal use of a property to bring vitality to the surrounding area, setup offices with stylish, functional interiors completed before tenant recruitment, and comfortable, inviting rooftop terraces.」

「Against this backdrop, our Group has made the revitalization and utilization of small and mid-sized office buildings in central Tokyo its core business, and has worked earnestly from the customer’s perspective to resolve the various concerns of building owners regarding their real estate.」

「Against this backdrop, our Group has made the revitalization and utilization of small and mid-sized office buildings in central Tokyo its core business, and has worked earnestly from the customer’s perspective to resolve the various concerns of building owners regarding their real estate.」

「We also actively operate a real estate revitalization business by incorporating into the revitalization of used buildings purchased by the company the knowledge and expertise developed in providing these diverse services, and by leveraging experience from each segment in sequence. We revive office buildings as attractive, high-quality properties by carrying out tenant-focused renovations, including changes to the optimal use of a property to bring vitality to the surrounding area, setup offices with interiors completed before tenant recruitment, and comfortable, inviting rooftop terraces.」

「Against this backdrop, our Group focuses on the utilization and circulation of small and mid-sized office buildings in central Tokyo, develops an in-depth understanding of the market, and operates a highly specialized business concentrated in this area.」

「Against this backdrop, our Group focuses on the utilization and circulation of small and mid-sized office buildings in central Tokyo, develops an in-depth understanding of the market, and operates a highly specialized business concentrated in this area.」