Imperial Hotel up for potential redevelopment?

A nearby acquisition by Mitsui Fudosan has some industry experts suggesting that the1100-room Imperial Hotel near Hibiya Park in downtown Tokyo may be slated for future redevelopment.

The hotel includes the main building that was built in 1970 along with a 31-storey office/hotel building at the rear that was completed in 1983. By the time of the 2020 Summer Olympics, the main building will be 50 years old. With a booming tourism industry, many of Japan’s top hoteliers are expanding, refurbishing or redeveloping their older hotels.

Omotesando’s Seihou Building to be redeveloped

A 51-year old retail and public housing building alongside Aoyama Dori Avenue in Omotesando will soon be rebuilt. The 10-storey Seihou Building was built in 1967 and has a total floor area of 6,075 sqm (65,000 sq ft). It is jointly owned by a subsidiary of Mizuho Bank and the Urban Renaissance Agency.

The new building will have a total floor area or 16,000 sqm (172,000 sq ft), more than 2.5 times the size of the older building.

Tokyo facing office space shortage in prime buildings

Office vacancy rates in central Tokyo’s business districts continue to shrink with Jones Lang Lasalle reporting almost no vacancies in the main office buildings in the Marunouchi district. After reaching a high of 9.43% in mid-2012, vacancy rates in Tokyo’s central five business districts were down to 3.03% last month – a level last seen in April 2008.

It’s not just Marunouchi that is suffering from a dire shortage in available office space, with prime high-rise buildings in Nihonbashi, Shinjuku and Shibuya also seeing demand outstrip supply. Tenant demand is being supported by improved business earnings and company growth, resulting in a need for larger office space to accommodate growing staff numbers.

Construction starts on Aoyama Bell Commons redevelopment

Construction has started on a 20-storey commercial building on the site of the former Aoyama Bell Commons building in the Omotesando / Gaienmae area in Tokyo. Completion is due by April 2020.

The 90m tall Kita Aoyama 2 Chome Project will include retail on the first two floors, a hotel on floors 3, 4 and floors 16 through 20, and office and co-working space on floors 5 through 15. The total floor area will be 22,910 sqm, approximatley 50% larger than Aoyama Bell Commons, while the new building will be almost twice as tall.

Takashimaya pays 442 million USD for two office buildings in Nihonbashi

Takeda Pharmaceutical has sold two of their buildings in downtown Tokyo to the Takashimaya Department Store for a reported price of 49.5 billion Yen (approx. 442 million USD). Delivery of the buildings is scheduled for March 2019. Both properties were owned by Takeda’s real estate division. Takeda will be putting the proceeds from the sale towards their research for new cancer treatments.

The Tokyo Takeda Building and adjoining Takeda Shin Edobashi Building are located a block behind Takashimaya’s Nihonbashi store. The block to the north and east of the historic department store is currently being redeveloped into two high-rise office towers ranging from 140 ~ 176 meters tall and with completion expected in early 2018 and early 2019.

Google Japan office relocation signals return of Shibuya’s Bit Valley

On November 17, Google Japan announced plans to relocate their head office to a new office tower near Shibuya Station in mid-2019.

Google will be taking up floors 14 to 35 in Shibuya Stream – a 35-storey office tower due for completion in late 2018. The 50,000 sqm (538,000 sq ft) of office space will allow them to double their staff numbers from the current level of 1,300. The lower floors of the Shibuya Stream building will be hotel rooms, making Google the sole office tenant.

16-fold rent increase for shopkeepers at Asakusa’s Sensoji temple

Shopkeepers alongside the Nakamise shopping street, a 250 meters long souvenir shop-lined pedestrian mall leading to Sensoji temple in Tokyo, are reeling after being hit with a potential 16-fold increase in store rents. In September, Sensoji temple informed the tenants of plans to increase the rent from the current level of 15,000 Yen per month for a 10 square meter shop to a new rent of 250,000 Yen per month, making it in line with market rents for the neighborhood and ending years of subsidized rents that had been offered by the previous landlord – the Tokyo metropolitan government.

Tokyo office rents increase for 45th consecutive month

According to Miki Shoji, the average monthly office rent in central Tokyo’s five business districts reached 18,995 Yen per Tsubo (approx. 5,747 Yen/sqm) in September, an increase of 3.59% from last year and the 45th month in a row to record a year-on-year increase. The average is still 17% below the recent record high of 22,901 Yen/Tsubo (6,929 Yen/sqm) seen in August 2008.