Taken from the Minato City website
Plans for the redevelopment of the SHINAGAWA GOOS complex located at the west exit of Shinagawa Station are in full swing; the facility, which closed in March 2021, was once known to many as the Pacific Hotel Shinagawa and later as the Shinagawa Goos. The redevelopment project, a joint venture between Keihin Electric Express Railway and Toyota Motor Corporation, is a major project that will greatly enhance the value of the Shinagawa area. This report provides an overview of the redevelopment project and its prospects from the perspective of the real estate industry.
Overview of the redevelopment of the former SHINAGAWA GOOS site
Taken from the Minato City website
The redevelopment of the Shinagawa Station West Exit area, including the former SHINAGAWA GOOS site, is being divided into four districts: A, B, C, and D. Of these, the most concrete plans are currently underway in District A (the former SHINAGAWA GOOS site), where a large-scale complex including Toyota Motor Corporation's new Tokyo headquarters will be constructed.
An outline of District A is as follows
- Site area: approx. 23,600 square meters (approx. 0.5 Tokyo Dome)
- Total floor area: approx. 313,100 square meters (approx. 6.7 times the size of the Tokyo Dome)
- Building structure: 4 floors below ground, 29 floors above ground
- Main facilities: Offices (including Toyota Motor Corporation's Tokyo headquarters), commercial facilities, hotel, MICE facilities (conference, multipurpose hall), bus terminal
- Scheduled construction period: Start of construction in FY2025, opening in FY2029
This development is not limited to the mere construction of buildings, but aims to create a comprehensive urban space based on the "Shinagawa Ekimachi Guidelines. In the west exit area, in particular, a plaza space is planned to harmonize the bustle in front of the station with the surrounding greenery under the policy of "making the most of the undulating topography and greenery, as well as the "Guest Interchange," which consists of a variety of functions.
Impact on the Real Estate Market and Outlook
Ripple Effect on the Value of Surrounding Real Estate
The realization of such a large-scale redevelopment project is expected to have a significant impact on real estate values in the surrounding area. In particular, the Shinagawa area will attract even more attention in the future due to the following factors
- Convenient transportation: Easy access to Haneda Airport, Shinkansen station, and in the future, the Linear Central Shinkansen Line is scheduled to arrive and depart in the area.
- Enhanced functionality as an international business hub: International conference facilities, such as MICE, will be enhanced.
- Relocation of the headquarters of Toyota Motor Corporation, one of Japan's leading companies: other companies are also expected to move into the area.
These factors will create a synergistic effect that will lead to an increase in the overall value of the area, such as higher housing prices and rents in the surrounding area, and revitalization of commercial facilities.
From a Real Estate Investment Perspective
From a real estate investment perspective, a long-term investment strategy with a view to opening in 2029 will be effective. Specifically, the following points should be focused on
- Investing in small- and medium-scale properties in the surrounding area: High likelihood of benefiting from the area's value enhancement due to large-scale redevelopment
- Secure properties for commercial tenants: Demand is expected to increase due to the influx of new business population
- Increased demand for high-end rental housing for foreigners: Increase in the number of foreign businesspersons due to the shift to international exchange hubs
Projects from a Human Capital Development Perspective
Such large-scale projects provide significant growth opportunities for everyone involved. In particular, from our perspective as a "human capital investment company" that considers human capital to be its most important asset, the following values can be found
- Accumulation of complex development know-how: Experience in developing and operating complex facilities with diverse functions, including office, retail, hotel, and MICE facilities
- Asset formation based on a long-term perspective: Investment decisions based on long-term value beyond 2029, rather than the pursuit of short-term profit
- Balance between international sensibility and contribution to the local community: Balance between a global perspective and community-based development
Particularly noteworthy is the fact that Keihin Electric Express Railway and Toyota Motor Corporation, two large companies from different industries, are working together on this project. By combining their respective corporate cultures and strengths, we can expect to create unprecedented value creation. This type of cross-industrial collaboration is a good example of the "everyone involved will be happy" business model that we have always emphasized.
Future Prospects
The SHINAGAWA GOOS site redevelopment project will continue over the next several years until construction begins in 2025 and the site opens in 2029. During this period, various changes and challenges are expected to occur, but from a long-term perspective, the value of the Shinagawa area is certain to increase.
We at INA will continue to closely monitor these trends in large-scale redevelopment and continue to offer our clients optimal real estate investment and utilization. Especially in the Shinagawa area in the future, it will be important to make strategic proposals that go beyond mere real estate sales and management, with a view to increasing the value of the entire area.
From the perspective of "investing in human resources," we hope that our employees will gain a broader perspective and expertise through opportunities to be involved in redevelopment projects such as this. Taking on challenges without fear of failure and learning and growing from them will lead to sustainable development both as individuals and as a company.
Conclusion
The redevelopment of the former Shinagawa GOOS site is not simply the reconstruction of a single facility; it is an important project that will contribute to improving the international competitiveness of the Shinagawa area as a whole, and by extension, of Tokyo. As real estate professionals, we intend to accurately grasp this wave of change and propose the best options for our clients. We will continue to pay attention to trends in the Shinagawa area and provide you with the latest information.
