Value-Added Project Completed: Revamping the Osaka Station Front Building

Nex Co., Ltd, based in Minato, Tokyo, successfully completed its first value-added project, focusing on the renovation of the Osaka Station Front Building, an asset located in Umeda, Osaka. This project involved the strategic acquisition and redevelopment of the building that has aged 48 years, transforming it into a more lucrative real estate asset.

Project Overview

The target property, previously known as the Osaka Station Front Building, spans approximately 138 tsubo (about 455 square meters) on the second floor. Nex acquired the building and terminated contracts with previous tenants who had been enjoying low rent. After this, the renovation began from the skeleton of the building, meticulously reconfiguring the space to accommodate up to six units for offices or service stores.

One of the unique features of this project was the innovative leasing strategy introduced by Nex. Prospective tenants were given the option to select their preferred wallpaper, flooring, and lighting. Moreover, the lease terms included a zero deposit requirement and no obligation to restore the property to its original condition upon vacating, significantly lowering the overall moving costs for tenants. This attractive offer, combined with the upgraded facilities, resulted in a property that could command rents above the market average, fostering a sustained high revenue stream.

The Essence of Nex's Value-Added Business

As time goes on, properties naturally face depreciation, leading to a decline in both market and utility value. Traditionally, property owners invest heavily in exterior and interior renovations merely to maintain or restore their building’s value. However, such repairs only act as a stopgap, offering little in the way of increased revenue.

In contrast, Nex embraces a different approach through its value-added strategy. This involves comprehensively understanding location traits and tenant needs, followed by bespoke office designs, reconfiguration of floor spaces (resizing units), and monetizing common areas to enhance utility value as part of the renovation. Nex employs a continuous and professional property management process, encompassing leasing and operational management, to maximize rental income and resale profits effectively.

Nex’s value-added service guarantees satisfaction for both property owners and tenants. The company plans to expand its services beyond just acquired properties, offering its expertise to general property owners, corporate real estate (CRE), and real estate resellers. Their objectives include addressing vacant homes and underutilized land, thereby broadening their operational boundaries across multiple sectors in real estate.

About Nex Co., Ltd

- Name: Nex Co., Ltd
- Representative: Takehiro Wakabayashi
- Location: 2-11-6 Nishi-Shimbashi, Minato, Tokyo
- Established: April 3, 2007 (originally founded in May 1999)
- Capital: ¥368,000,000
- Business Activities: Managing flexible workspaces, buying, selling, leasing, brokering, and managing real estate; comprehensive building management, design and construction, and operating a beauty salon (Nex the Salon) and an academy for hairstylists (Nex Academy).
- Website: Nex Official Website