Roppongi Hills Pricing Itself Out Of The Market?

[Mulboyne]

[floatr][/floatr]In another indication that Roppongi Hills may be charging commercial tenants too much in rent for the business available, Idee Cafe and Rojak, have declined to renew their leases and will reopen elsewhere. Both are run by by Idee which also operates furniture and designs shops. The firm will hold a closing party for both on the 15th January. Idee intends to maintain two existing sites in the nearby Tokyo Midtown. Other tenants, including several leading luxury goods chains, have indicated to the building's management that they may also decline to renew their leases unless the terms can be made more attractive but so far the owners have decided to hold to their current prices.

[Captain Japan]

This would tell me that Idee's business isn't what it used to be. I doubt there is much reason to have stores in both Midtown and Roppongi Hills.

[Mulboyne]

Roppongi Hills was a good place to do business when it opened but the spike soon tailed away which led a lot of brands to skip Omotesando Hills when it opened. "Shibuya customers at Ginza rents" is how one luxury goods company described it. The contracts at Midtown are generally better for tenants so firms were more inclined to open there to take advantage of early business and then retain the option to move elsewhere. Anyone with operations in both buildings would find Midtown a better deal at the moment. Roppongi Hills is not a bad location but Mori believes high hurdle rates are necessary to maintain overall quality. That policy is beginning to hurt as the bloom fades and new retail areas open around Ginza, Marunouchi and Yurakucho.

[Mulboyne]

2triky already pointed out here a Japan Today article talking about the exodus from Roppongi Hills. The managers have now confirmed that a total of 59 boutiques and restaurants will close including the Wishing Well Irish pub, two tonkatsu joints, Bar Vodka Tonic, two Chinese restaurants and a range of coffee shops. Full list in Japanese here.

Mori is putting a brave face on things and suggests that it wanted some of its tenants to leave because they did not suit the needs of the buildings customers and now they have an opportunity to upgrade their service.

[2triky]

2triky already pointed out here a Japan Today article talking about the exodus from Roppongi Hills. The managers have now confirmed that a total of 59 boutiques and restaurants will close including the Wishing Well Irish pub, two tonkatsu joints, Bar Vodka Tonic, two Chinese restaurants and a range of coffee shops. Full list in Japanese here.

Mori is puuting a brave face on things and suggests that it wanted some of its tenants to leave because they did not suit the needs of the buildings customers and now they have an opportunity to upgrade their service.

59 tenants...that's quite a lot...despite the rhetoric from Mori you can't dismiss that as a bit of "house cleaning" as he might suggest.

[GuyJean]

59 tenants...that's quite a lot...despite the rhetoric from Mori you can't dismiss that as a bit of "house cleaning" as he might suggest.

Yeah, I mentioned in the below thread that 23 tenants had left the Hollywood Plaza..

But what used to be labeled as 'Closed' about two weeks ago on the shop list map, is now labeld as 'NEW SHOP!'.. With no indications of that 'new shop!'..

Also discussed here:
No All-Nighters For Roppongi

GJ

[2triky]

Yeah, I mentioned in the below thread that 23 tenants had left the Hollywood Plaza..

But what used to be labeled as 'Closed' about two weeks ago on the shop list map, is now labeld as 'NEW SHOP!'.. With no indications of that 'new shop!'..

Also discussed here:
No All-Nighters For Roppongi

GJ

Yeah I saw your thread...I posted an article there as Mulboyne mentioned....with that many tenants now gone it's hard to dismiss it or cover it up. Moreover with Omotesando Hills and Midtown developments open and in full swing, it surely makes Roppongi Hills' lack of tenants that much more conspicuous.

So since there are no more all nighters in Roppongi it's a wonder who will come in to fill the void? More importantly will these future tenants be able to generate the same kind of revenues for the area?

[gkanai]

Rats are fleeing the sinking ship.

I went past the Vuitton store at Roppongi Hills on Saturday afternoon. Sunny, warm for this winter, the store should have been teeming but there was barely any traffic whatsoever.

I actually like Roppongi Hills now that there aren't crowds and I don't have to wait in line for good soup dumplings.

[kamome]

I actually like Roppongi Hills now that there aren't crowds and I don't have to wait in line for good soup dumplings.

I think I know that restaurant. Is that the Chinese place that makes its own noodles?

[2triky]

I think I know that restaurant. Is that the Chinese place that makes its own noodles?

If I'm thinking of the same dumpling place...it's world famous...I believe the original is Shanghai....the name of the restaurant is "The Nanxiang Steamed Bun Restaurant"

Here's a picture I took when I went there:

[Mulboyne]

As part of the renovation scheduled for Roppongi Hills' 5th anniversary, the company has announced plans for an open-air sky deck at the top of Mori Tower. Open to the public from April 26th, it will be the highest viewing platform in the country.

[ttjereth]

As part of the renovation scheduled for Roppongi Hills' 5th anniversary, the company has announced plans for an open-air sky deck at the top of Mori Tower. Open to the public from April 26th, it will be the highest viewing platform in the country.

I'd go just to see that once.

I wonder how many people are already planning their suicides though.

[GuyJean]

As part of the renovation scheduled for Roppongi Hills' 5th anniversary, the company has announced plans for an open-air sky deck at the top of Mori Tower. Open to the public from April 26th, it will be the highest viewing platform in the country.

WhooHoo!.. I'm there.. at least to spit on people..

But seriously; R6 is a fucking wind-trap at ground floor; I predict the roof being closed 60% of the time.. Unless they have a giant wind shield up there..

GJ

[Greji]

WhooHoo!.. I'm there.. at least to spit on people..gj

Ahh, in what direction do you plan on letting fly?

[kamome]

If I'm thinking of the same dumpling place...it's world famous...I believe the original is Shanghai....the name of the restaurant is "The Nanxiang Steamed Bun Restaurant"

The pic looks familiar, but the name was in Chinese and there were chefs in the back that you could see through a window pulling the dough to make noodles. Excellent food. I bet GJ or Greji know the joint.

[2triky]

The pic looks familiar, but the name was in Chinese and there were chefs in the back that you could see through a window pulling the dough to make noodles. Excellent food. I bet GJ or Greji know the joint.

Well the name of the restaurant is written in Chinese I just mentioned the name in English, and yes the place I referenced does have a window so you can see the chefs at work...here's some more pics of the place...perhaps they might comport with the image you remember

[2triky]

As part of the renovation scheduled for Roppongi Hills' 5th anniversary, the company has announced plans for an open-air sky deck at the top of Mori Tower. Open to the public from April 26th, it will be the highest viewing platform in the country.

Very cool. That will undoubtedly be a nice place to visit on a clear day....I imagine it will be crowded though.

[Iraira]

As part of the renovation scheduled for Roppongi Hills' 5th anniversary, the company has announced plans for an open-air sky deck at the top of Mori Tower. Open to the public from April 26th, it will be the highest viewing platform in the country.

I sense a new date spot to take my victims.......

"The view is so suge---------"
"Yeah let's go to a love hotel and fuck."
"Ok."

[Greji]

Very cool. That will undoubtedly be a nice place to visit on a clear day....I imagine it will be crowded though.

That's true, but they move right along, since they installed a diving board just to the right of the picture....

[omae mona]

That's true, but they move right along, since they installed a diving board just to the right of the picture....

All that's left now is for Taro to photoshop a picture of somebody's body impaled on top of the giant spider sculpture.

[Greji]

All that's left now is for Taro to photoshop a picture of somebody's body impaled on top of the giant spider sculpture.

I think I saw GJ trying to impale the spider from the rear on Friday night!

[Captain Japan]

Japanese real estate
FT
Published: June 19 2008 03:00 | Last updated: June 19 2008 03:00

An eerie hush is descending over Roppongi Hills, one of Tokyo's glitziest skyscrapers and home to investment banks and internet Wunderkinder. Do the emptying floors flag up problems in the broader commercial real estate market?

In spite of 15 years of falling land prices after Japan's asset bubble burst in the early 1990s, Tokyo rents are still among the highest. Average rents for grade A properties in Tokyo's central business district, according to Jones Lang LaSalle, are almost double those of New York Midtown and about a fifth higher than the City of London. Vacancies are just 3 per cent. Combined with tight supply - fragmented land ownership acts as a brake on development - this should provide support to prices. Besides, Roppongi Hills is a poor bellwether. Two high-profile tenants, Livedoor and Murakami Fund, were obliged to shut up shop following financial scandals. Several internet groups decamped to the newer and swankier Midtown. More recently, financial firms have been cutting back, freeing up floor space at - so newcomers boast - rather lower rents.

That said, there are risks. Vacancy rates have been edging higher in recent months. With financial services firms shedding whole departments, the trend will continue. Rents are still climbing, as they have been since the start of 2005, but there are pressure points beyond the smartest buildings in traditional business districts. Amid tighter financing conditions, the flow of transactions is starting to stutter. Issuance of commercial mortgage-backed securities slowed sharply in the first quarter and the real estate investment trust market is weak. Japan's heavy reliance on bank funding means it is less affected than other markets, but sharp divisions are emerging. Investors, like well-off tenants, should follow the flight to quality.

[DrP]

Hills is such a schlock building, the interior stinks (literally), the carpet is worn , you basically couldn't tell it apart from any other j-cookie cutter crap salaryman office. The only difference is you have a view of the rest of the beautiful [sic] Tokyo skyline. I would say that only the old Sohos in Beijing represent a poorer office space selection under the guise of 'chic'.

[Hamaki]

That's true, but they move right along, since they installed a diving board just to the right of the picture....

don't jump, let me help you