Company A, a well-established manufacturer, consulted with us to examine utilization measures in accordance with business operations for three real estate properties that were underutilized.

Property 1

30 years old, company employee housing in Tokyo/The building's construction does not meet the new seismic standards and its occupancy rate remains around 50%. Considerable expense would be required for anti-seismic reinforcement and the room layouts do not meet the needs of today's employees.

Property 2

40 years old, business office in Tokyo/Only 50% of the maximum statutory floor-area ratio is utilized and the maintenance and repair costs have been increasing.

Property 3

20 years old, company housing for single employees/The facility is not fully utilized as the company has been refraining from hiring new employees and the facility's occupancy rate has been decreasing.

Evaluation of the use value/market value of each property was made and simulations for asset utilization were performed.
From among several scenarios, pre-marketing studies and other simulations were conducted for each property and sale prices were estimated. Based on that, Property 1 was sold and using the profit gained from the sale, Property 2 was rebuilt into a rental office building while reserving part of the building for the company's own use. Mitsubishi Real Estate Services undertook the property management for the new office building to support its operation.
Based on the results of our simulation, we determined that Property 3 should be best utilized as a rental apartment building and a building conversion was carried out. Taking advantage of the sublease system of Mitsubishi Real Estate Services, a stable rental income was secured for the converted rental apartment building.