A historic redevelopment project is now fully underway in Tokyo's prime downtown location, Yurakucho Station Front. Mitsubishi Estate Co., Ltd.'s rebuilding plan for the “Yurakucho Building” and “New Yurakucho Building” is drawing attention as a new model case in Japanese urban development, going beyond mere responses to aging infrastructure.
Completed in 1966 and 1967 respectively, both the Yurakucho Building and New Yurakucho Building were historic structures exceeding 50 years old. However, to address challenges such as meeting increasingly sophisticated tenant needs and ensuring business continuity during disasters, the redevelopment plan was formally announced in July 2021, with demolition work commencing in December 2024.
The most noteworthy aspect of this redevelopment plan is its aim to create new urban value through a temporary facility called “YURAKUCHOPARK,” scheduled to open in the latter half of fiscal year 2026, rather than simply replacing the buildings. Spanning approximately 18,000 square meters, this mixed-use complex will function as a hub for disseminating Japanese culture by integrating art, commerce, and hospitality. It is expected to significantly impact the overall real estate value of the Yurakucho area.
For real estate investors and landowners, this large-scale redevelopment holds the potential to expand investment opportunities and enhance asset value. For general consumers, the emergence of a new cultural and commercial hub in the city center will also represent a significant change directly linked to improved quality of life and enhanced regional appeal.
The Yurakucho Building and New Yurakucho Building redevelopment plan announced by Mitsubishi Estate is positioned as a prime example of a large-scale urban regeneration project in central Tokyo. Both buildings, constructed during Japan's period of rapid economic growth, are historic structures. However, they required fundamental renewal to meet the diversifying needs of modern tenants and increasingly stringent disaster prevention standards.
Approximately 55 years have passed since the completion of the Yurakucho Building in 1966, and approximately 54 years since the completion of the Shin-Yurakucho Building in 1967, leading to significant deterioration of the structures. Significant improvements were particularly needed in areas such as advanced IT infrastructure, energy efficiency, and barrier-free accessibility—all essential for modern office environments.
The redevelopment was driven by diverse demands from tenant companies. Advances in work-style reform now require office spaces to support not only traditional work functions but also communication and creativity enhancement. Furthermore, the impact of the COVID-19 pandemic has heightened the importance of ventilation performance and hygiene management capabilities.
A further critical factor is the need to strengthen business continuity planning (BCP) in the event of disasters. Since the Great East Japan Earthquake, corporate disaster preparedness awareness has significantly increased, demanding office buildings meet high seismic performance standards, secure emergency power supplies, and maintain robust communication infrastructure. Existing buildings over 50 years old struggled to meet these modern requirements.
Item Yurakucho Building New Yurakucho Building
Year Built 1966 1967
Age (as of 2024) Approx. 58 years Approx. 57 years
Location JR Yurakucho Station Front JR Yurakucho Station Front
Demolition Start Date December 1, 2024 December 1, 2024
Demolition Completion Target End of August 2026 End of August 2026
Contractor Taisei Corporation Taisei Corporation
This redevelopment plan is positioned as a core project within Mitsubishi Estate's “Marunouchi NEXT Stage” initiative. The company has announced plans to focus development efforts on the Yurakucho and Tokiwa-bashi areas, investing a massive ¥600-700 billion in redevelopment and soft infrastructure improvements by 2030.
This investment scale represents one of the largest urban regeneration investments by a single real estate developer in Japan, with an immeasurable impact on the Tokyo central business district real estate market. The investment breakdown includes not only building reconstruction costs but also comprehensive area value enhancement measures such as surrounding infrastructure development, public space enrichment, and attracting cultural and commercial facilities.
Within Mitsubishi Estate's strategy, the Yurakucho area plays a crucial role as a hub for creating new value centered on “culture, arts, and MICE.” Located at the gateway to the Marunouchi business district, it also serves as a junction point connecting commercial and cultural areas like Ginza and Hibiya. Leveraging this unique location, the company aims to create a complex urban space that integrates business functions with cultural and entertainment functions.
“Marunouchi NEXT Stage” seeks to transform the area from its traditional office-centric development into a “place where people and companies gather and interact to create new value.” This shift in policy responds to changing office demand driven by the spread of remote work, while also representing a strategic initiative to build an internationally competitive city.
Execution of the investment plan is expected to position the Yurakucho area as a new growth engine within central Tokyo. Significant ripple effects are anticipated, including attracting international companies, increasing tourist numbers, and revitalizing the local economy, which should also substantially contribute to enhancing the asset value of surrounding real estate.
Scheduled to open in the latter half of fiscal year 2026, YURAKUCHOPARK is Japan's first large-scale cultural complex, utilizing the vast 18,000 m² site formerly occupied by the Yurakucho Building and Shin-Yurakucho Building. Designed as a strategic urban space beyond mere temporary use, it adopts an innovative concept integrating art, commerce, and hospitality.
At the core of the facility is the “JAPAVALLEYTOKYO” project. This project, jointly produced by Grammy Award-winning artist and designer Pharrell Williams and NIGO®, a leading figure in street culture, is drawing attention as the world's first hub dedicated to disseminating Japanese culture.
Mitsubishi Jisho Sekkei is participating in the spatial design, and a symbolic art piece by KAWS, a top creator in the contemporary art world, is also scheduled to be displayed. The combination of these elements creates a new urban space that stands apart from conventional commercial facilities and office buildings, achieving both cultural and commercial value.
YURAKUCHOPARK features the following distinctive functions. First, a system will be established to regularly showcase diverse cultures like food, fashion, and design through pop-up stores and event spaces. This provides visitors opportunities to experience culture with all five senses, going beyond mere shopping or dining.
Furthermore, the entire facility is designed to function as an “urban experience space,” naturally inviting diverse people—from everyday passersby to domestic and international tourists—to stop by and interact. This openness and inclusivity is expected to directly enhance the appeal of the entire Yurakucho area and significantly contribute to increasing the value of surrounding real estate.
Item Details
Opening Period: Second half of fiscal year 2026
Site Area: Approximately 10,800 m²
Concept: The forefront of Japanese culture dissemination
Core Project: JAPAVALLEYTOKYO
Producers: Pharrell Williams, NIGO®
Artwork: KAWS (Leading contemporary artist)
Design Mitsubishi Jisho Sekkei
Primary Functions Art, Commercial, Hospitality Complex
The opening of YURAKUCHOPARK is expected to have multifaceted effects on the real estate value of the entire Yurakucho area. First, analyzing the impact on commercial land prices, its function as a cultural hub is anticipated to significantly enhance the overall brand value of the area.
Referencing past similar cases, the opening of large-scale cultural and commercial complexes has been confirmed to boost commercial land prices within a 500-meter radius by an average of 15-25%. In the case of YURAKUCHOPARK, the involvement of internationally renowned producers and artists suggests this effect could be even greater.
Significant changes in rental demand are also anticipated. Proximity to YURAKUCHOPARK will be highly attractive to cultural/art-related companies and creative industries. While these businesses have traditionally clustered in areas like Shibuya and Harajuku, the establishment of a cultural environment in the central Tokyo location of Yurakucho could foster the formation of a new business cluster.
Office rents are also expected to rise. Proximity to a cultural hub like YURAKUCHOPARK offers substantial benefits for creative and global companies in terms of corporate branding and talent recruitment. Consequently, increased demand for surrounding office buildings is anticipated to drive up rental rates.
The appeal as investment real estate is also expected to increase substantially. The crowd-drawing effect generated by YURAKUCHOPARK is anticipated to boost sales at surrounding commercial facilities and restaurants, directly contributing to improved real estate investment returns. Furthermore, an increase in international tourists is also expected, potentially raising investment demand for hotels and lodging facilities.
For residential real estate, the enhanced appeal of the area is expected to increase demand, particularly for high-end condominiums and detached homes targeting high-income individuals. The enrichment of the cultural environment is a key factor in residential location selection and is expected to significantly contribute to enhancing the residential value of the Yurakucho area.
However, these effects are anticipated to materialize gradually. Immediately after the opening of YURAKUCHOPARK, effects will primarily be temporary, driven by the novelty factor. As the facility becomes established and achieves sustained visitor attraction, more enduring real estate value enhancement effects can be expected. We recommend investors consider a medium- to long-term investment strategy rather than short-term speculation.
The redevelopment of the Yurakucho area offers multi-layered investment opportunities for real estate investors. The primary advantage is its prime location. JR Yurakucho Station is a major terminal station served by the Yamanote, Keihin-Tohoku, and Tokaido lines, with excellent access to the Tokyo Metro Yurakucho, Hibiya, and Marunouchi lines. Furthermore, direct access to Haneda and Narita airports is secured, placing its accessibility from both domestic and international destinations among the highest in Tokyo.
The real estate categories worthy of consideration as investment targets are diverse. First, there are investment opportunities in office real estate. The opening of YURAKUCHOPARK is expected to accelerate the expansion of creative and global companies into the area, driving demand for high-quality office space. For companies prioritizing proximity to cultural hubs, offices in the Yurakucho area represent a strategic location.
Significant investment opportunities also exist in commercial real estate. The customer attraction generated by YURAKUCHOPARK is expected to boost sales for surrounding commercial facilities and restaurants. This location will be particularly attractive for stores offering art and culture-related goods and services.
Hospitality-related real estate is also a noteworthy investment target. The emergence of an international cultural hub is expected to increase the number of overseas tourists and business travelers. Investment demand is anticipated to rise for properties catering to diverse accommodation needs, including luxury hotels, business hotels, and serviced apartments.
Regarding the investment timing, a phased approach is recommended. Currently, demolition work is underway, and the investment environment is gradually being established leading up to the opening of YURAKUCHOPARK (late 2026). While early entry offers the potential to acquire properties at relatively lower prices, a cautious approach—investing after assessing the actual effects post-opening—is also valid.
Investment Target | Expected Effects | Investment Timing | Risk Factors
Office Real Estate | Rent increases, improved occupancy rates | 2025–early 2026 | Uncertainty in tenant demand
Commercial Real Estate | Sales growth, enhanced tenant attraction | Around 2026 opening | Changes in consumer behavior
Hotels & Lodging Facilities | Improved occupancy rates, ADR increases | Post-2026 opening | Fluctuations in tourism demand
Residential Real Estate
Increased asset value, rising rents
2025–ongoing
Interest rate fluctuations, oversupply
To properly evaluate the investment value of the Yurakucho redevelopment, comparative analysis with past similar cases is crucial. The most relevant examples are Roppongi Hills (opened 2003) and Tokyo Midtown (opened 2007).
In the case of Roppongi Hills, commercial land prices in the surrounding area rose by approximately 40% over the five years before and after opening, while office rents recorded an average increase of 25%. Particularly noteworthy is how the inclusion of a cultural facility (the Mori Art Museum) created added value beyond that of a mere office and commercial complex. This case provides important reference for predicting the effect of facilities with cultural dissemination functions, such as YURAKUCHOPARK.
At Tokyo Midtown, surrounding office rents rose by an average of 20% within three years of opening, and commercial facility sales exceeded planned targets. Key success factors included the integration of high-quality office environments with commercial and cultural functions, along with the development of lush green public spaces.
Compared to these examples, YURAKUCHOPARK holds advantages in the following areas. First is its superior location. Compared to Roppongi or Akasaka, Yurakucho is closer to Tokyo Station and functions as a hub with a greater concentration of railway lines. Second, it enjoys high global visibility due to the involvement of international producers and artists.
However, there are also points to consider. While Roppongi Hills and Tokyo Midtown are permanent facilities, YURAKUCHOPARK is positioned as a temporary use facility. Therefore, when formulating long-term investment strategies, it is necessary to also consider the full-scale new building construction plans scheduled for after 2030.
Based on the analysis of success factors, the following points are crucial for investment strategy. First, maximize revenue during the initial opening phase when the facility generates the most buzz. Next, consider securing a long-term position for the full-scale development planned after the temporary use period ends.
From a risk management perspective, it is necessary to consider the demand fluctuation risks specific to cultural and entertainment facilities. Demand for cultural facilities can fluctuate relatively significantly due to economic downturns or changes in consumer preferences. Therefore, diversifying the investment portfolio and preparing flexible exit strategies are crucial.
The Yurakucho Building and New Yurakucho Building redevelopment plan is a symbolic project for creating new urban value in central Tokyo, going beyond mere aging infrastructure response. Mitsubishi Estate's massive investment of ¥600-700 billion will transform the Yurakucho area from a traditional office district into a multifunctional urban space integrating culture, art, and business.
Scheduled to open in the latter half of fiscal year 2026, YURAKUCHOPARK will be a key facility spearheading this transformation. Through the “JAPAVALLEYTOKYO” project, featuring international creators like Pharrell Williams, NIGO®, and KAWS, it will serve as a global hub for disseminating Japanese culture. This cultural outreach function is expected to directly enhance the brand value of the entire area, leading to increased asset values for surrounding real estate.
The following points are particularly important regarding the long-term impact on the real estate market. First, an increase in commercial land prices. Referencing past similar cases, a 15-25% rise in land prices is anticipated, with further increases possible due to the concentration of culture and art-related companies. Second, a qualitative change in office demand. Proximity to cultural hubs will become a key location factor for creative and global companies, driving demand for high-quality office space.
For investors, we recommend a phased approach. Different investment opportunities exist at each stage: from the current demolition phase through the 2026 opening of YURAKUCHOPARK, and into the full-scale new building construction starting after 2030. Balancing the securing of price advantages through early entry with cautious investment decisions based on post-opening performance verification is crucial.
For landowners, this redevelopment also presents a significant opportunity to enhance asset value. Specifically, the customer attraction effect of YURAKUCHOPARK is expected to boost sales at commercial facilities and restaurants, directly improving real estate revenue. Furthermore, the enhanced appeal of the entire area is anticipated to drive stable, long-term growth in asset value.
As next steps, please consider the following points. First, continuously monitor real estate market trends in the Yurakucho area to identify investment opportunities. Next, during the preparatory phase leading up to YURAKUCHOPARK's opening, explore acquiring surrounding properties or implementing value enhancement strategies for existing assets. Finally, formulating a long-term investment strategy with an eye toward full-scale development after 2030 is also crucial.
The Yurakucho redevelopment is anticipated to significantly influence future urban development in Japan as a new model case for city development in central Tokyo. By closely monitoring the progress of this historic project and making appropriate investment decisions, substantial profit opportunities can potentially be captured.