Stories
Leasing the Toranomon Sakura Building
01 The Challenge
The occupancy rate at the end of October 2015 after NIPPON REIT Investment Corporation acquired the Toranomon Sakura Building was 48.5%. As the occupancy rate did not rise despite completing a renewal and there being no issues in terms of facilities and quality grade under the previous owner, in September 2016 they decided to engage Cushman & Wakefield, for leasing management expertise.
02 The Solution
When Cushman & Wakefield initially undertook this, building renewal had already been completed, turning it into a high-grade building. We therefore proposed changing the leasing strategy rather than the hardware to increase the occupancy rate. More specifically, we proposed splitting recruitment around 100m2 each, which was predicted to have the highest demand, without depending on recruiting for an entire floor or large lot. Furthermore, we provided the know-how when attracting tenants to split small lots.
03 The Result
While the occupancy rate when we undertook this project was around 60%, Cushman & Wakefield achieved a 100% occupancy rate in only 6 months after being entrusted with leasing management, contributing to a higher return. Subsequently, whenever a vacancy arises, Cushman & Wakefield has engaged to successfully attract tenants in a short period of time, maintaining a 100% occupancy rate.
Testimonial
"We have managed from 2015, when the office rental market was poor. In order to realise slightly higher rents compared to surrounding competing properties, we determined that it was advisable to recruit tenants by dividing spaces into around 100m2 each. This strategy was a success, allowing us to achieve and maintain a high occupancy rate. "
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