Building Owners Prioritize Reducing Running Costs in Property Management

Growing Concerns Among Building Owners: Trends in Property Management

In a recent survey conducted by Sinei Real Estate Business Inc., over 50% of building owners have expressed that reducing running costs is their top priority. This highlights a significant shift towards recommendations in property management, especially as the age of buildings increases and maintenance costs rise.

The survey gathered responses from 109 property owners and project management contract partners during the period from April to May 2026. Among the respondents, the focus on lowering running costs was the most pressing issue, followed by maintaining and enhancing the value of their properties and boosting tenant satisfaction. The findings reveal a growing demand for managerial approaches that are not only reactive but also proactive, emphasizing long-term care for older buildings.

Background of the Survey

The building management industry has faced significant changes in recent years due to several factors:

1. Rising Utility and Material Costs
2. Advancing Building Age
3. Increase in Repair Costs
4. Challenges with Vacancy Rates
5. Stricter Regulatory Compliance
6. Enhanced Disaster Prevention and Business Continuity Plans (BCP)

Among these issues, particularly for aging office buildings, maintaining a balance between cost-cutting and preserving asset value has become crucial. As a result, the role of management companies has also evolved to meet these challenges.

Key Findings of the Survey

1. Top Priority: Reducing Running Costs

A notable 56% of respondents indicated that lowering running costs was a significant concern. This trend underscores a broader interest in the effective management of older facilities, where the tension between cost management and improving tenant satisfaction is palpable.

2. High Interest in Maintaining and Enhancing Asset Value

Many participants emphasized the importance of long-term repair plans, equipment upgrades, and preventive maintenance, illustrating a demand for a forward-thinking approach to property management. Rather than merely addressing existing issues, property owners are increasingly seeking management strategies that focus on preventing problems before they arise.

3. Elevating Tenant Satisfaction

Improving occupancy rates and attracting tenants, alongside enhancing the satisfaction of existing ones, were highlighted as vital topics in the realm of building management. There is a growing recognition that a property’s value is increasingly linked to tenant comfort and usability.

Shifting Expectations of Management Companies

In feedback provided in the survey, property owners expressed appreciation for quick responses to urgent issues but also articulated a clear expectation for management companies to offer comprehensive proposals for repairs and preventive maintenance. The demand for a more proactive management approach is well established.

Sinei Real Estate’s Commitment to Property Management

Sinei Real Estate Business Inc. has been addressing these evolving market needs by centralizing its property management efforts across the nation, focusing primarily on office buildings. The company aims for cost optimization through integrated management services, including property management (PM), building maintenance (BM), and leasing management.

Operating amidst rising costs related to building aging and energy, Sinei emphasizes enhancing management structures to balance immediate responses with long-term solutions. This commitment to offering proposal-based management is designed to adapt to regional characteristics and building conditions based on extensive national experience.

Future Initiatives and Outlook

According to CEO Koichi Nitta, the survey results reflect that building owners prioritize services that contribute not only to management operations but also to revenue improvement and asset value maintenance. Moving forward, Sinei aims to continue providing valuable and effective management services by balancing rapid response abilities with strategic proposals for both owners and tenants.

About Sinei Real Estate Business Inc.

- Headquarters: 6F, Shinjuku 6-chome Building, 6-24-16 Shinjuku, Shinjuku-ku, Tokyo
- CEO: Koichi Nitta
- Services: Property management (PM & BM), real estate sales and leasing, building maintenance
- Branches: 6 locations nationwide, including Tokyo, Osaka, Nagoya, and Fukuoka
- Website: Sinei Real Estate