Sumitomo Corporation's "Second Birthplace" in Kanda – Public-Private Partnership for Urban Planning that's Fun to Explore

How did Sumitomo Corporation become involved in urban development of the Kanda area, and what is the history of your office building business to date?

ChidaniSumitomo Corporation first entered the Tokyo market from Osaka in 1966, and Kanda was the location of our first office. Since then, we have positioned Kanda as our "second birthplace" and have made it one of the key strategic areas for our office building business, alongside the Kyobashi and Kojimachi areas. In particular, we have actively developed along Kanda Keisatsu-dori, which runs from Hitotsubashi in Chiyoda ward to Kanda Kajicho, and we pride ourselves as the "No. 1 office developer in the Kanda area," holding and managing over 40,000 tsubo (approximately 132,000 square meters) of large-scale office buildings (those with a standard floor of over 300 tsubo), far surpassing other companies in terms of real estate in the area.

ShimadaIn recent years, we have developed large-scale office buildings such as Terrace Square (completed in 2015) and KANDA SQUARE (completed in 2020) and have also expanded PREX – our series of mid-sized office buildings. We are also involved in renovation projects, including the redevelopment of existing buildings like WORK VILLA MOTOSHIRO.

Sumitomo Corporation has identified Kanda as a strategic focus area. What makes it so attractive and full of potential?

ChidaniKanda has a unique allure – large office buildings for major corporations sit side by side with small, independent shops. This area offers a diversity not found in other large-scale development zones. It blends history with modernity, attracting office workers, young people from nearby universities and tourists. The office market in Kanda remains steady, with stable rents due to strong demand. Recently, companies focused on creating positive working environments have been moving here, drawn by the area’s unique cultural atmosphere.

ShimadaThe Kanda area is also home to many shrines and temples, including the famous Kanda Myojin and Yushima Seido. The Kanda Festival, one of Japan’s Three Great Festivals, is also a notable feature. I personally have fond memories of participating in the festival’s portable shrine procession shortly after I transferred. The area is also full of delicious restaurants, meaning that Kanda has great appeal not just for work, but for leisure and culture as well.

What is Sumitomo Corporation’s strategy for urban development in Kanda?

ChidaniWe are promoting "urban planning that's fun to explore" centered on Kanda Keisatsu-dori. The challenge in this area is that although there are many unique neighborhoods nearby, such as Jimbocho, Ochanomizu, Otemachi and Akihabara, there isn't a distinct connection between them. To address this, Chiyoda Ward has been working on revitalizing the area to give the community energy, and one key initiative is the widening of the sidewalks along Kanda Keisatsu-dori. This street is a rare one-way, four-lane major road in Tokyo, and we hope to capitalize on this potential. Sumitomo Corporation is aligning with the city's urban planning efforts and promoting development along the street. With the completion of the sidewalk expansion in mind, we are constantly reviewing the best development plans to attract more people to the area and create a lively cityscape for everyone.

For example, in our involvement with the rebuilding project of the Gakushi-Kaikan ("Academy Hall"), we plan to create a new flow of people by adding a passageway from Jimbocho Station to Kanda Keisatsu-dori. What's more, projects like Terrace Square and KANDA SQUARE lie along Kanda Keisatsu-dori heading toward Kanda Station. These developments include plazas and parks where events and markets are held on weekends. Rather than just rows of lifeless office buildings, we are intentionally creating open spaces where people want to hang out and relax. By not simply building one office building, but rather multiple large-scale projects, we believe we are contributing to the community's vision of "urban planning that's fun to explore."

How is development moving forward through public-private collaboration?

What are Sumitomo Corporation’s strengths in advancing development in the Kanda area?

ChidaniFortunately, we frequently receive inquiries from local brokers and community members, with many saying, "If you're talking about Kanda, go to Sumitomo Corporation first." We are often approached about land information and large-scale developments, including those by other companies. I believe this is because Sumitomo Corporation has been deeply rooted in the Kanda area for so long, working diligently and maintaining a hands-on approach.

Further, the Office Building Business Unit at Sumitomo Corporation is a relatively small team of around 30 people, which allows us to be flexible. Many other real estate companies have separate departments for land acquisition and development, but at Sumitomo Corporation, we advance projects as a single cohesive team. This enables everyone to understand the profitability of a project, ensuring that it progresses with a clear view of its financial viability. Many of our team members also have experience in residential development, so even if a site is deemed unsuitable for an office building, we can propose using it for residential purposes, such as condominiums. This flexibility in optimizing land use is one of our key strengths. Over time, our expertise in development has multiplied, and we’ve been fortunate to acquire even more business opportunities, resulting in a steady increase in projects.

What do you consider the most important aspect of urban development in Kanda?

ChidaniThere’s a phrase that was entrusted to me by local residents: "If you’re going to develop, please don’t make the area void of culture, where everything shuts down on weekends." I hold those words very dearly. If we only focused on short-term profit, we could easily continue generating office buildings that strictly function as offices, but that would create an area without any foot traffic on weekends. By creating facilities, open spaces and public squares that can be used by both local residents and visitors, we hope to foster communities promoting local culture, which evolve and thrive organically.

ShimadaWORK VILLA MITOSHIRO, a large-scale renovation of Sumitomo Corporation's former office building at the intersection of Kanda Keisatsu-dori, is an example of a space that will serve as a community hub. The first three floors of the building are occupied by Yasui Architects & Engineers, the architectural firm that undertook this renovation. Going forward, we plan to collaborate with the firm to host engaging events for local residents, fostering a sense of community.

WORK VILLA MITOSHIRO is the first large-scale renovation project for the Sumitomo Corporation Office Building Business Unit. Could you share more about this project?

ShimadaRenovating a large, 60-year-old building was a rare and challenging endeavor, but it turned out to be a successful project. Through the installation of high-efficiency air conditioning, energy-saving devices and LED lighting, we were able to obtain ZEB Oriented Certification,* a standard for energy-efficient buildings. With the trend toward reassessing and reusing older buildings, it's important to have such a successful case study. We plan to expand with similar renovation efforts in other parts of Tokyo in the future.

*The certification system targets buildings with a total area of 10,000 square meters or more that have taken measures to achieve further energy savings, in addition to higher performance and more efficient energy-saving equipment.

Lastly, could you share your thoughts on urban development in Kanda and your future aspirations?