TOKYO: Leading Japanese logistics firm Nippon Express Co said on Wednesday it was considering selling its headquarters building in Tokyo, a sale which the Yomiuri newspaper reported could fetch more than 100 billion yen ($965 million).
The report follows news last week that advertising giant Dentsu Group Inc was also looking to sell its head office located just blocks away from Nippon Express’s 28-storey high-rise in the Shiodome district, near the posh Ginza district.
Tokyo has some of the most expensive land prices in the world, but with more people working from home due to the COVID-19 pandemic, some firms are rethinking their real estate holdings.
Nippon Express is constructing a new headquarters site in another area of Tokyo, and had originally planned to rent out space in the current building.
It is also considering selling or using it for its own purposes, a Nippon Express spokesman said, declining to say when or why those options were added.
The Yomiuri report said that more instances of telecommuting were making it difficult to find tenants, and investment funds were expressing interest in buying the building.
Shares in Nippon Express rose 1.8% in early trade, outperforming the Tokyo market’s 0.64% gain.
The spokesman also said the move to the new headquarters site, originally scheduled for September, was likely to be pushed back due to coronavirus-related construction delays.
TOKYO: Prices of newly-built apartments in the Tokyo area rose 1.7% last year, approaching the record highs seen during Japan‘s asset-inflated bubble era that ended in the early 1990s, the country’s Real Estate Economic Institute said.
Higher construction costs due to preparations for the Olympics and popularity of high-rise condominiums in formerly industrial waterfront areas helped drive the average apartment price up to 60.84 million yen ($586,410), the highest since 1990 when it reached a record 61.23 million yen.
The most expensive unit was a 690 million yen ($6.65 million) condominium in Daikanyama, the real estate data and consultancy firm said.
The number of sales fell 12.8% from a year earlier to 27,228 units, however, down around 70% from 1990 levels.
Real estate website Suumo said in a report last week that low interest rates and tax breaks helped sustain property demand amid the coronavirus outbreak.
Unlike people in other big cities such as New York which saw an exodus to the suburbs during the coronavirus pandemic, Tokyo residents appeared more interested in moving to new developments in central locations to reduce their commuting times, it said.
The Tokyo stock market’s Nikkei 225 average rose around 16% last year.
Japanese advertising giant Dentsu Group Inc said on Wednesday it is considering the sale of its Tokyo headquarters, which local media said could fetch around 300 billion yen ($2.9 billion).
The Nikkei business daily earlier reported that Dentsu may sell its 48-story building in the central district of Shiodome, near Ginza, and then rent back about half of the space. It currently uses about 70 per cent of the building, the report said.
Dentsu said in a statement it was considering the sale as part of a comprehensive business review announced in August, but that a decision had not yet been made.
Tokyo has some of the most expensive land prices in the world, but with more people working from home amid the COVID-19 pandemic, some firms are rethinking their real estate holdings.
Financial services firm Nomura Holdings Inc and technology company Fujitsu Ltd are among companies that have said they will make give employees options to continue working from home beyond the coronavirus pandemic.
MUMBAI: India’s top seven commercial real estate markets including Mumbai, New Delhi, Hyderabad and Pune have emerged as the most economical office interior fit-out markets in the Asia Pacific region, showed a Cushman & Wakefield study.
Key cities in Japan and Australia continued to dominate the top 10 list of most expensive office fit-out locations in Asia Pacific with average fit-out cost of $150 per sq ft. Tokyo, Osaka, Nagoya and Sydney lead the rankings, with Melbourne climbing four spots to fifth this year, the study revealed.
“From an office design perspective, the workplace will evolve from a regular office to a place for networking and with a social feel. We expect that while social distancing and a flexible work policy will reduce the number of seats in an office, there would also be a bigger focus on agile seating formats,” said Shashi Bushan, Managing Director, Project & Development Services, Occupiers – India, Cushman & Wakefield.
Mumbai remains the most expensive office market in the country with an average fit-out cost of $133 per sq ft. The average office interior fit-out cost in New Delhi stood at $126 per sq ft and $33 in Chennai.
Post-Covid-19, the focus on health and safety is expected to continue to intensify, bringing forward greater adoption of touchless technology, improved heating, ventilation, and Air Conditioning (HVAC) and smarter cleaning practices.
“We expect the companies to place more emphasis on employee wellbeing, hygiene, safety and security given that the pandemic has underscored the requirement to do so. Based on our interaction with our clients, we are observing that companies are inclined to de-densify their offices with this objective in mind.While the fit-out cost is already low in India, it will further decrease with de-densification of offices, and modernisation and industrialization that is underway in Indian office interior construction industry,” said Tushar Mittal, Managing Director of SKV, an interior design firm specializing in commercial offices.
While work from home is gaining ground, lots of employers see a need to scale up the usable area for each employee. Several companies are expected to modify their offices to suit new norms and guidelines.
Prolonged, enforced working from home has highlighted that productivity can be maintained, but at the cost of personal connection to colleagues and company culture. This raises questions around the optimal size and composition of the corporate footprint, while highlighting the need for ongoing investment into IT and audio-visual technology for collaborative team working. All these factors are important considerations as companies remain laser-focused on costs.