”Once in a Century" Redevelopment Accelerates - Railway Companies Seek Opportunities in Real Estate Industry - Shinagawa, Shinjuku, Shibuya, Terminal Stations / Tokyo

  • 02-05-2024
  • ["Redevelopmen", "tokyo"]

Once in a Century" Redevelopment Accelerates - Railway Companies Seek Opportunities in Real Estate Industry - Shinagawa, Shinjuku, Shibuya, Terminal Stations / Tokyo

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Major redevelopment projects described as "once in a century" are accelerating at terminal stations like Shinagawa, Shinjuku, and Shibuya in central Tokyo. Railway companies, as the main project sponsors, are hoping to find new opportunities in real estate ventures, leveraging prime locations amid plateauing railway usage. There is anticipation about how these stations, which represent the face of the city, will change.

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Large-scale redevelopment in central Tokyo gained momentum in the 2000s, but construction at stations where trains operate almost continuously throughout the day poses challenges, making them latecomers to redevelopment projects. Railway companies have yet to fully recover transport revenues, which declined during the COVID-19 pandemic. However, with a decrease in work-form-home, office demand has begun to rebound.

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In anticipation of the introduction of the Linear Central Shinkansen, redevelopment is progressing rapidly on both the east and west sides of Shinagawa Station. On the eastern side, JR East is constructing five buildings, including offices, residences, and commercial facilities, on the site of a former train depot. Mobility and IT are key themes, and the area will gradually open as the "Takanawa Gateway City" from March 2025. On the western side, Keikyu Corporation and Seibu Holdings are planning developments such as hotels, offices, and residences.

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At Shinjuku Station, the former Odakyu Department Store site on the west side is being jointly developed by Odakyu Electric Railway, Tokyo Metro, and Tokyu Real Estate. A towering skyscraper, approximately 260 meters tall—taller than the Tokyo Metropolitan Government Building—is scheduled for completion in the fiscal year 2029. It will house one of the largest commercial facilities and office spaces in the Shinjuku area. Plans also include the redevelopment of the station front plaza, with connections to the east side via underground passages and elevated walkways.

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At Shibuya Station, redevelopment that began with the undergrounding of the Tokyu Toyoko Line and the closure of the east wing of Tokyu Department Store's Toyoko Store in 2013 will continue until fiscal year 2027. The station has become increasingly complex due to repeated expansions and renovations, earning it the nickname "labyrinth." However, there are plans to connect multiple skyscrapers with elevated walkways.

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Meiji University's Professor Emeritus Hiroo Ichikawa (Urban Policy) pointed out, "Although all are centered around skyscrapers, Shibuya is becoming a completely different city from before as it attracts emerging companies and involves the surrounding area." He also emphasized, "The key to success for Shinagawa and Shinjuku lies in how development can be expanded around the stations."

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Written by Tsuyoshi Hikichi

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