Skyscrapers lose lustre for Japanese companies during Covid-19 pandemic
TOKYO (BLOOMBERG) - Japan's decades-long love affair with status-symbol office towers is now fading, as the pandemic upends work styles and puts a strain on company finances. In a country where companies have long taken pride in owning their buildings, advertising agency Dentsu Group and logistics firm Nippon Express are now considering selling their Tokyo headquarters. Avex, an entertainment company, also plans to offload its head office in the Japanese capital. Companies around the world are paring office space as workers stay at home during the pandemic, giving firms an opportunity to save costs and raise cash. In Tokyo, office vacancies have surged to a five-year high and may continue to climb as the government urges people to work remotely to curtail the latest wave of coronavirus cases. "Not many companies in Japan have sold headquarters buildings before, but we may see more of it," said Kakyu Tanaka, a senior researcher at Sumitomo Mitsui Trust Research Institute. Firms that are faced with tough business prospects but have room to reduce office space through remote work may do so, he said. With thousands of its employees working from home, Dentsu is looking to sell its 48-fl...
