Nissho Hoken Co., Ltd.
Takagi Building Co., Ltd., a real estate owner, supports the project to turn 5 trillion yen of security deposits lying dormant in Japan into business funds for startup companies.
As office needs diversify, what owners need is “creating an
environment that supports companies”
Nissho Hoken Co., Ltd. (headquarters: Minato-ku, Tokyo; President: Junya Toyooka; hereinafter referred to as “Nissho Hoken”), which develops a “deposit reduction service”, is working with office owners and experts to offer zero-deposit ” In July of last year, we launched and are promoting the “Deposit-Free Office Project”, which is aimed at developing “deposit-free offices” and expanding them nationwide. Office security deposits estimated to be about 5 trillion yen in Japan. We want to use this fund to create an environment where small and medium-sized companies and start-up companies can easily take on challenges, so we are working to get the support of real estate owners, experts, and companies. It was started.
Takagi Building Co., Ltd. (Headquarters: Minato-ku, Tokyo, President: Hidekuni Takagi, hereinafter referred to as “Takagi Building”), which develops office buildings, residences, co-working spaces, etc. in Tokyo, has agreed to the project. rice field.
At the same time, “Kanda Takagi Building” (Chiyoda-ku, Tokyo) is looking for tenants as a security deposit free office, and it is possible to move in from February 1st.
Good access to Otemachi and Marunouchi “Kanda Takagi Building” Deposit-free office Available from February 1st
[Kanda Takagi Building Property Overview]
◆ Location: 1-17-1 Kandanishikicho, Chiyoda-ku, Tokyo
Completion: October 1988 (3rd floor renewal work completed in November 2020) ◆Structure: Steel-framed reinforced concrete construction, 1 basement floor, 7 floors above ground
◆Facilities: Individual air conditioning, 1 elevator, separate toilets for men and women, hot water supply, balcony available
◆ Surface area 3rd floor 43 tsubo
◆ Use: Office
◆ Moving in February 2023
◆Monthly rent consultation
◆ Contract period 3 years
◆Contract form Fixed-term lease contract
“Growing together with tenants.” What is required is the creation of new value for building owners
Founded in 1961, Takagi Building has been consolidating and organizing building development sites for many years since its start as a parking lot management and rental housing management company. In addition, under the theme of “new value to real estate”, we continue to provide offices to tenant companies while assessing the values of office buildings that change with the times.
Based on the concept of LIFE TERMINAL, we are developing a “BIRTH” project that explores the future of real estate by creating
connections with the community, environment, education, etc., and operating a coworking space.
Since 2016, Nissho Hoken has been promoting the “Next-Generation Successful Building” project to support the growth of start-up companies by reducing initial costs such as relocation costs when moving into an office building. From “Next-Generation Successful Building: Toranomon Takagi Building”, a tenant company that has achieved an IPO using “Shikikin Half Price” has been produced. Takagi Building, which continues to create new real estate value, has become a “tenant and business partner” as a building owner, and was quick to adopt “half-price security deposit (guarantee)” in order to grow together. Through these efforts, new exchanges with tenant companies have been created, and useful information such as “office floor expansion consultations” and “introductions to other companies” have come to be received directly.
Based on past experience that initiatives such as “50% off security deposit or zero security deposit”, which at first glance can be seen as a negative for building owners, have led to new businesses, Takagi Building has decided to launch the “Cash Deposit as Growth Capital Project”. You also agreed.
“Not just renting an office, but creating an environment that supports companies” Takagi Building Co., Ltd. President Hidekuni Takagi The value of office usage has diversified after the COVID-19 crisis. We believe that not only the “location” and “equipment” that have been required for offices so far, but also the “new value” and “quality” will lead to differentiation.
As a building owner, I would be happy if start-up companies and others could use the “deposit-free office” as a new scheme to lower the hurdles for growth and store openings. Furthermore, it would be ideal if the office becomes more than just a “place,” but a place where entrepreneurs with the same aspiration can connect and become a source of inspiration. In addition to renting out offices, creating an environment that supports the companies that move in is necessary for the owner to become the office building of choice, and it will take a new form.
Company name | Takagi Building Co., Ltd.
Established | April 20, 1961
President and Representative Director｜Hidekuni Takagi
Head office | 1-7-2 Nishi-Shimbashi, Minato-ku, Tokyo
Business Description｜Development and rental of office buildings, condominiums, and parking lots, as well as their management and operation
W E B site | https://t-bldg.jp/
A total of 18 companies, including Tokyu Land Corporation and Tokyo Tatemono, support the “Deposit as growth capital. Project”
Nissho Hoken, which provides a “deposit reduction service”, is working with office owners to roll out “deposit-free offices” with zero deposits nationwide, aiming to introduce 5,000 offices in three years. As a result, an estimated 62.5 billion yen in security deposits will be eliminated, and it is expected to be used as investment funds for startups and small and medium-sized enterprises.
As a project advisor, we have invited Mr. Kenji Kawashima, a professor at Hosei University who specializes in corporate accounting, to hold seminars on financial strategies and financial advice for small and medium-sized enterprises and startups, as well as seminars for building owners and real estate companies.
[Table 3: https://prtimes.jp/data/corp/16254/table/70_1_4a2450052c2a4bdea4994667212fd11f.jpg ]
Office 2023 problem, rising vacancy rate … Helping to deal with a mountain of issues
Due to the spread of COVID-19, working styles have changed due to an increase in remote work, and the values of corporate offices have also changed. The average vacancy rate announced in January this year in Tokyo (the five central wards of Tokyo: Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) was 6.47% (*1). When looking at the vacancy rate of newly supplied offices, an average of 5% is used as a guideline for market fluctuations. It is over.
Furthermore, this year, a series of new office buildings will be completed in the city center, and it is expected that there will be an oversupply situation. There are also concerns that companies will move away from their offices, and office owners are facing an urgent issue of how to fill the vacancies.
In a survey of business owners conducted in July last year (*2), when companies selected an office, they wanted to create a “comfortable space” and “a design that facilitates communication.” The ideal conditions to be sought are also changing.
In addition, many respondents said that they were planning to relocate their office, but “moving costs” and “deposit” were a bottleneck, and we learned that “deposit” is a hindrance when moving or moving into a new office. rice field.
In this project, we propose an approach to office rentals that do not require security deposits, so that companies can use the “security deposits” that should be paid as a service to fund their business, while owners are encouraged to use office vacancies. We will support the growth of Japanese startups and small and medium-sized enterprises by introducing a “deposit-free office” as a service for early filling. *1 From the Tokyo business district office market announced in January 2023 by Miki Shoji
*2 From Neo Marketing’s “Survey on office use and corporate management during the corona crisis”
Despite reaffirming the importance of office buildings, about 40% saved growth. Background of the launch of the project
According to a survey conducted by the research company Neo Marketing Co., Ltd., while about half of the managers reaffirmed the importance of office buildings, 45.6% of the managers of SMEs and start-up companies that raised funds said “deposit I could have grown without it,” he said. In addition, 42.7% of respondents answered that they “save investment in growth” and 39.3% answered that they “save employee employment” because of security deposits.
[Table 4: https://prtimes.jp/data/corp/16254/table/70_2_462bbc9742e2a0a13f76242dd472c216.jpg ]
About Nissho Hoken Co., Ltd.
We are developing a service that converts “deposits” into business funds and supports the “business growth” of ventures and start-ups. Based on the idea that the “finance” that supports the business can be freed in accordance with the changes in the environment surrounding the business, in order to realize “finance that supports the main business”, a new form of guarantee that breaks out of old customs With the aim of achieving this goal, we provide a security deposit reduction guarantee service that allows companies moving into commercial real estate such as offices and stores to reduce the initial cost of moving in and relocating, such as security deposits, so that the reduced funds can be used effectively for their
Company name: Nissho Hoken Co., Ltd. (URL: https://jpcpg.co.jp/) Location: 3rd floor, Toranomon Takagi Building, 1-7-2 Nishi-Shimbashi, Minato-ku, Tokyo 105-0003
Representative: Junya Toyooka, President and Representative Director Established: September 16, 2011
Capital: 606.5 million yen (including capital reserve)
*Regarding the calculation method for the estimated deposit amount of 5 trillion yen
[Estimated amount = leased area × unit price per tsubo × amount of rent for office size] Estimate the security deposit for each office size and add it up.
■ Office building leasing area
See office stock survey by Xymax Research Institute
Large scale (total floor area of 5,000 tsubo or more): 6.91 million tsubo Small and medium-sized (total floor area of 300 tsubo or more and less than 5,000 tsubo): 6.07 million tsubo
■ Rent per tsubo by size of office building
Estimated from Sanko Estate’s office market report
-Rent per tsubo by scale-
Large: 25,000 yen
Small and medium size: 18,000 yen
Outside the 23 wards: 15,000 yen
-Scale annex amount-
Large scale: Rent x 12 months
Small and medium size: Rent x 10 months
Outside the 23 wards: Rent x 8 months
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