OFFICE BUILDING BUSINESS

Overview

The Office Building Business, Mitsubishi Estate’s core business, engages in the development, leasing, and property management of office buildings with state-of-the-art functions, mainly in major Japanese cities centering on the Marunouchi area. Our businesses involve three types of earnings models: our property development and leasing business, in which we ourselves develop office buildings and receive rental revenue from them; our capital recycling business, where we generate capital gains on the sale of properties we have developed; and our non-asset businesses, which center on office building operations and management. Through building development and operations, we are promoting urban development to increase the attractiveness of the entire surrounding area.

Image: Business Concept

Revenue from Operations,Operating Income / Operating Income Ratio

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Competitive Advantages

  • Ownership of about 30 buildings in the Marunouchi area, a leading business area in Japan with one of the world's greatest concentrations of companies.
  • Redevelopment in Marunouchi not requiring new land acquisition is largely unaffected by fluctuations in the real estate investment market, thus enabling stable and continuous redevelopment.
  • Development know-how and a track record cultivated through continuous urban development in the Marunouchi area for more than 100 years.
  • Tenant relationships and information networks built through the Group’s wide-ranging businesses, including development in the Marunouchi area.
  • Relationships with the central and local governments built through public and private sector cooperation in urban development.
  • Urban development and area management with advanced disaster-management functions centering on the Marunouchi area.
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Business Strategies

Marunouchi Area

  • Generally, redevelopment enables rental revenue to be increased by expanding building floor space and raising rents per square meter. In the Marunouchi area, we aim to promote continuous redevelopment that raises value through individual redevelopment projects as well as by realizing synergies across the whole area.
  • We intend to strengthen the functions of Marunouchi through the “Open Innovation Field” initiative to cultivate new communities and undertake field trials with leading-edge technologies.

Main Office Areas in Japan

  • We aim to strengthen our development pipeline by using the know-how we have accumulated through redevelopment in the Marunouchi and other areas.

Non-Asset Businesses and Others

  • We intend to expand and strengthen non-asset businesses, including property management and master leases, and businesses that utilize existing stock, such as through the renovation of aged buildings.
  • We aim to leverage relationships built through office building development and the office building leasing business to expand other businesses and create new businesses.
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The “Open Innovation Field” Initiative in the Marunouchi Area

As one of the growth strategies for the Office Building Business in the Medium-Term Management Plan, we are promoting the “Open Innovation Field” initiative in the Marunouchi area. The initiative entails bringing people and companies that find opportunities in innovation together and interact. Accordingly, we aim to provide a constantly stimulating city environment that inspires creativity and a willingness to realize new possibilities and embrace change.

Specifically, we are focusing on the fields of AI, the Internet of Things (IoT), and robotics and seeking to actively promote practical tests with systems and services that utilize state-of-the-art technology. In the office building leasing business, we are providing small offices targeted at growing companies both in Japan and overseas as well as start-ups working on the application of advanced technologies. We are working to build a platform for providing a point of contact between different players and support the formation of networks for lively exchanges between start-ups and large companies.

Picture: Field test of self-driving bus on Marunouchi Naka-dori Avenue

Field test of self-driving bus on Marunouchi Naka-dori Avenue
The first time for a self-driving vehicle to run on public roads in Tokyo's 23 wards

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TOPICS

In the Marunouchi area, we have been making good progress toward completing construction of the Marunouchi Nijubashi Building in October 2018. The project involves replacing three buildings with 30 stories aboveground and four belowground. The new building will have a large conference hall and banquet space and further stimulate the Marunouchi area with an expanded lineup of retail outlets along Naka-dori Avenue. Together with this redevelopment, we are also building a service tunnel beneath Naka-dori Avenue to improve the disaster-management functions of the area (please see pages 22–25).

We are also moving ahead with the redevelopment of the Marunouchi 1-3 Project, on which construction began in January 2018, and Building A, Tokyo Tokiwabashi Project in front of Tokyo Station, on which construction began in February 2018. These redevelopment projects will move forward the integrated development of the Marunouchi area.

In areas outside Marunouchi, in May 2018 we completed the msb Tamachi (Tamachi Station Tower South) in the msb Tamachi project in a joint development with Mitsui Fudosan Co., Ltd., and Tokyo Gas Co., Ltd., on a site adjacent to JR Tamachi Station’s east exit. The project is located in the Tamachi area where JR Shinagawa New Station is scheduled to open in 2020. Due to open in autumn 2018, the Pullman Tokyo Tamachi will be Japan’s first hotel under the Pullman brand.

Image: Marunouchi Area,Tokyo
	(Outside of Marunouchi)

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CORPORATE INFORMATION

  • A MESSAGE FROM THE MANAGEMENT
  • ABOUT MITSUBISHI ESTATE
  • PROFILE OF MITSUBISHI ESTATE
  • CORPORATE BRAND
  • SAFETY AND SECURITY
  • CORPORATE GOVERNANCE
  • GROUP COMPANIES