Last week, Rosemary Feenan and I had the privilege of being in Tokyo to launch our latest report from JLL’s Cities Research Center – Tokyo on the World Stage.
Despite talk of Japan moving back into recession, we found a city that is being driven by a newfound energy. Momentum in Tokyo has been boosted by securing the 2020 Olympic Games and a genuine commitment from both government and the business community to make the city a much more favourable location to do business, as well as an attractive place for talent and tourists.
Testimony to the city’s re-emergence is the prediction that in the next 12 months, Tokyo is expected to see the strongest uplift in real estate performance of all the major cities across the globe. The untapped longer term potential for Tokyo’s real estate is being increasingly recognised by international investors, many of whom are now actively targeting the city.
In order to build on this momentum, Tokyo will need to be agile, refresh its international reputation, develop an environment more conducive to inventive and creative activity and work hard to address the constraints on international business activity … and the real estate industry has an essential role to play:
- Improving real estate transparency will support business efficiency and help attract global corporations;
- Creating a style of commercial real estate stock that enables Tokyo to grow into its ‘new skin’ and reflect new styles of working;
- Increasing the focus on energy-efficient ‘green buildings’ will make sense environmentally and also be a key selling point for investors and corporate occupiers;
- Contributing to Tokyo’s international profile and brand through impressive skylines, state-of-the-art urban design and business practices.
We fully expect Tokyo to pick up pace over the next few years – and according to our latest City Momentum Index, Tokyo is re-emerging as one of the world’s most dynamic cities. The city will be preparing for 2020 like no other and the real estate sector will play a key role in driving momentum. JLL look forward to helping Tokyo achieve its global ambitions. Read more in Tokyo on the World Stage.