Around half of the buildings in the Nihonbashi, Yaesu, and Kyobashi areas of Chuo Ward, Tokyo were completed before 1969. For major areas in central Tokyo, there are a particularly high number of old buildings in the areas, which are situated at the opposite side of the Tokyo Station from Marunouchi CBD. In the areas, demolitions of existing buildings and construction of new buildings can be seen here and there, and there are also vacant lots and such that may serve as sites for redevelopment projects.

Chuo Ward has stipulated a district plan for these areas in order to promote the intensive use of land. It involves a system for relaxing floor-area ratio restrictions on building facilities that are able to solicit a certain percentage of facilities or tenants known as induced uses, including branches of banks and securities firms, restaurants, and shops.

However, we hear that some building facilities which took advantage of the relaxed floor-area restrictions are now finding that these induced uses have become an impediment due to the worsening market conditions for leased buildings.

For example, in the case of soliciting office tenants under induced uses, it is said that since these are restricted to business categories which have a front desk, tenant solicitation becomes difficult. It seems that hereafter developers will be faced with the difficult choice of either an increased floor-area ratio or a degree of freedom in leasing activities.

(Taro Tokunaga)

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