the possibility of conversion development by policies …

THE POSSIBILITY OF CONVERSION DEVELOPMENT BY POLICIES IN JAPAN

Toru EGUCHI Ph.D Candidate 1 Shuichi MATSUMURA Dr. Eng2

Kouichi SATO Dr. Eng3 1 Department of Architecture, School of Engineering, The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku,

Tokyo 113-8656, Japan, [email protected] 2 Department of Architecture, School of Engineering, The University of Tokyo, 7-3-1 Hongo, Bunkyo-ku,

Tokyo 113-8656, Japan, [email protected] 3 A/E Works Asso., 2-24-2-1102 Ikebukuro, Toshima-ku, Tokyo 170-0014, Japan, [email protected] Keywords: conversion, rehabilitation, urban regeneration, policy, urban living

Summary In Japan, the conversion (from offices into flats) activity has just launched recently, that because office vacant rate is getting high. On the other hands, it plays a role as not only environmental sustainability but also urban regeneration in such as European countries. This paper intends to try to find the possibility to develop the conversion activity continuously in Japan. First, we analyze some currency policies of local authorities that supports or leads conversion activities. Second, we find the way for urban regeneration by analyzing some case studies of building conversion. And finally, we set some issues as a next research step. This research shows roughly the currency situation of conversion activities in Japan. Market-driven can lead conversion activities, but when if we want to regenerate our neighborhoods by controlling conversion activities, policy promotions are needed. Adaptive policy incentives based on each local environment is needed: The functions of converted building have to follows the needs form their neighborhoods. When we can balance supply and demand, our neighborhood will be re-activate. We set some issues of policy promotions for adaptive incentives based on each local environment: to gather information of existing building stock and to support driving forces of market.

1. Introduction In Japan the vacancy rates of office buildings have been at high in big cities since 1992. This problem is especially acute in Tokyo metropolitan area, where big urban redevelopment projects had completed in 2003. The rents of these new offices are affordable for excellent companies so that they begin to relocate and this situation leads a chain of relocations from the lower grade offices to the higher ones. As a result, the numbers of buildings that are virtually impossible to let increases in Tokyo just like other cities in Japan [1]; that is what we call “2003 problem”. In these days, there are some projects and policies of conversion*1 in Japan. As the exiting research, it is sure that there is some need for urban living style by conversion in Japanese metropolitan area. On the other hands, it plays a role as not only environmental sustainability but also urban regeneration in such as European countries. The main driving forces of conversion activity are market and policy. When the policy leads to develop conversion activities, they sometimes try to revitalize neighborhoods in many countries. This paper intends to try to find the possibility to develop the conversion activity continuously in Japan. First, we analyze some currency policies of local authorities that supports or leads conversion activities. Second, we try to find the way to regenerate the areas by analyzing some case studies of building conversion. And finally, we set some issues as a next research step.

*1:The term of “conversion” mainly means from offices into flats in this paper.

The 2005 World Sustainable Building Conference,Tokyo, 27-29 September 2005 (SB05Tokyo)

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10-020

1.1 Target building type of this research Our main target office buildings are built after WW2 and reinforced concrete structure. Because, we built a lot of office buildings after WW2, especially during 1960-70’s, what we call highly economical development era. Typical vacant office buildings are as followings: over 4 stories high and under 600 m2 in Tokyo [1].

2. Policy promotion In this paragraph, we focused on some policies by local authorities that try to promote conversion activities in Japan. Because, the policies can play an important role in overseas countries, especially European countries and U.S.A, where conversion activities contribute re-activate its neighborhood [2]. The policies promoting conversion activities have just enforced in Japan. We will show the outline of three local authorities: Tokyo metropolitan area, Osaka city and Kanazawa city (Table 1). They take positive attitude toward conversion activities. Tokyo metropolitan area and Osaka city, both are 2 major cities in Japan, press the broachers explaining what is building conversion in 2003 [3, 4]. Both cities have much office floor area more than other metropolis. So, when the office vacancy rate getting high in the cities, the effect is much serious. That means they have the potential of conversion, especially from offices into flats for regenerate their neighborhoods. Kanazawa is not so large city, but the local authority has original incentives for conversion from 2003. The target area where the office vacancy rate is high is very limited. But there is still no applied case.

Table 1: Currency situation of Tokyo, Osaka and Kanazawa [5]

Tokyo Metroplitan

Area Osaka Kanazawa

Total population, Jan. 2005 8,396,594 2,632,758 457,947 Population density, Jan. 2005 (pop / km2) 13,510 11,861 979 Tax revenue (million yen), 2004 629,390 178,839 17,514 Total amount of rental office floor area (m2) 30,514,323 10,025,521 294,618 Average substantial office rent (yen / tsubo*2), 2003 15,310 11,230 9,010 Office vacancy rate (%), 2003 6.9 10.6 18.3 Office vacancy rate (%), 2000 4.3 9.4 15.4

* 2: 1 tsubo = around 3.3 m2

2.1 Tokyo Metropolitan Area Tokyo is the heart of Japanese economy, so there are a lot of office buildings. Figure 1 shows the Rent Gap (between office and housing) area in the center of Tokyo. When the rent of housing getting higher than office’s, the area has potential of conversion activity. Tokyo has special policy for supplying public rental housing that supports not only “normal” housing also “converted” in 2004. The aim is to supply high quality apartments in the center of Tokyo. The target conversion plan is only from offices into rental flats. Its residents are limited who works in Tokyo. And this policy subsidized by the program of Ministry of Land, Infrastructure and Transportation. Tokyo metropolitan government supports the part of construction cost (2/3 for common space and equipments, up to 1 million yen per units) and some tax credit (for five years) [6]. The condition is very strict. For example, building structure has to be applying currency seismic standard, the certificate of inspection of the building is still exist and so on. The reason is that the local authority supports only high quality rental houses. It is just first phase, because this promotion term is limited in just about half of year. On the other hand, there is some trial by local authority in Tokyo Metropolitan Area in 2004. In Chiyoda ward, central office and financial area in Tokyo, local authority has tried to figure out the possibility from offices into “student resident”. In Chuo ward, famous for historic commercial area, local authority supports model conversion (only offices into SOHO*3 of dress design) works, as a joint industry-university project, for regeneration in those neighborhoods.

*3: Small Office Home Office


Figure 1 Rent Gap Area in central five wards in Tokyo (2003) [3]

2.2 Kanazawa City Kanazawa had no damage of WW2, it is very unique character in Japanese capital cities, and so the urban structure from around 1550 still remains. The high office vacancy area is only along the main road, around 2 km long (Fig.2). Those offices buildings had been developed after 1960’s and their functions are mostly branch of financial companies (Fig.3). But in these days, those branches withdrew from Kanazawa because Japanese economical situation getting worse. So, the office vacancy rate is getting high. Around 70% of those buildings’ owners are in other large city, such as Tokyo and Osaka. And more than 70% buildings are built after 1970’s, that means they are good quality buildings [7]. The policy promotion is Kanazawa city original. The local authority supports construction cost (2/3 for common space and equipments, up to 2 million yen per units, up to 100 million per building) from 2003. But there are no applied cases, then they supports rent (10%) also from 2004 [8]. There is same policy in Fukui city, next capital city of Kanazawa, concerning construction cost support, from 2004. Their application area is wide, different from Kanazawa. They have one applied case.

Figure 2 (left) “Central Prosperity Regeneration District” in Kanazawa Figure 3 (right) Vacant office buildings along the main load in Kanazawa


3. Case study Recently, there are some conversion projects in Japan. Some of them are from offices into flats, and the others are from flats into shops, from large shopping centers into public institutions and so on. Some of their driving force is market and the other is local authority.

3.1 Market-driven 3.1.1 Offices into flats In central Tokyo and Osaka, there are some conversion projects by general contractors, developers and architects, recently (Fig.4). Many people wants to live in center of city where is convenient for commute, shopping, etc [9]. And people expect that building conversion can provide well-designed and cheap houses in central area. That means the potential of conversion is high in the center of large cities. On the other hand, there are a few conversion projects in local capital city. In Toyama city, a local development and construction company did conversion from office into flat (Fig.5). They can provide apartment houses in very cheap rent because the quality of original building was very good. They brought the building when it was sold at auction because ex-owner’s company was bankruptcy. Some buildings, sold at auction, have been converted in another capital cities also.

Figure 4 (left) “Lattice Aoyama” in Tokyo Figure 5 (right) “Continental Hoshiimachi” in Toyama 3.1.2 Flats into shops There are many converted into small shops from apartment houses and wooden houses (mostly old and 2 or 3 stories high) in Daimyo (means “King” in old time) district where is getting the most popular area in the center of Fukuoka city. The land and building owners, who live in this district for generations, afford some spaces to young people who want to open their original shops [10]. Especially young people come this district and enjoy walking around, eating and drinking. The road structure is like a labyrinth because there is no damage of WW2. So, people feel comfortable just walking around.

Figure 6 (left) Daimyo district; from old wooden house to shops Figure 7 (right) Daimyo district; from apartment house parking space to shops


3.2 Policy promotion Recently, some large department stores withdrew from the central city area because of the advance of motorization, especially in local cities. People tend to go to roadside “suburban” shopping center because they have many kinds of shops inside and huge free parking space. This department store (Fig. 8) built in 1991, next to the main station. In 2001, the core tenant “Matsuzakaya” had withdrawn. And the other small tenants too, in 2002. Then, local authority attracted another core tenants and supported construction cost for renovation of this building. Now, the store opened in this spring (2005), converting some upper floors into the movie theater [11] (Fig. 9). When a large department store closes in the center of the city, the impact to local economy is very high, especially in small-scale cities. So, some local authority try to attract tenants with some incentives or convert into public institute. They are trying to keep people coming to the center of their cities.

Figure 8 (left) “AM square”, facade Figure 9 (right) “AM square”, interior of movie theater space

4. Conclusion This research shows roughly the currency situation of conversion activities in Japan. Market-driven can lead conversion activities, but when if we want to regenerate our neighborhoods by controlling conversion activities, policy promotions are needed. As an existing research, policies are playing an important role in U.K. and U.S.A [12]. Adaptive policy incentives based on each local environment is needed: The original building characters have much influence to conversion. The functions of converted building have to follows the needs form their neighborhoods. When we can balance supply and demand, our neighborhood will be re-activate. Building conversion will be able to lead urban regeneration by adaptive incentives. We set some issues of policy promotions for adaptive incentives based on each local environment as followings: to gather information of existing building stock and to support driving forces of market. To gather information of existing building stock: to gather the general information (how old is this building, what kind of structure, who is the owner of existing buildings, etc) is very important, but it is hard to understand the general condition of existing buildings in city wide in Japan. And to understand the position of the building is also important. Then, we can make effective plan. To support driving forces of market: there are many conversion projects without any incentives. The marketing can be driving force of conversion activities. But sometimes, we have to support them, when the projects will contribute to make better environment but they do not enough funds. As the exiting research, it is sure that there is some need for urban living style by conversion in Japanese metropolitan area. And conversion activity will have much influence to the management of residential area in Tokyo. [13]. Conversion can make people come back to the center of cities more easily, that means it has a good potential for urban regeneration. Conversion activity can make the environment of a local area more activate, more flexible and more sustainable.


Acknowledgements This paper draws on the work carried out for the research and development subsidized by 21 century COE program which is funded by Ministry of Education, Culture, Sports, and Technology in Japan.

References [1] Kouichi SATO, Shuichi MATSUMURA and et al. 2002, International Cooperative Research and

Development on Sustainable Urban Management by Conversion of Buildings –part1: Research Concept, Sustainable Building 2002 International conference in Oslo.

[2] SUBCOM, 2004, Building Conversion will regenerate the cities and change its neighborhoods, Nikkan Kensetsu Newspaper Co., Ltd., pp. 30-88.

[3] Tokyo Metropolitan Government. 2003, The currency situation of conversion of office buildings.

[4] Housing Department of City of Osaka. 2003, The Guide line of Building Conversion.

[5] K.K. Ikoma Data Service System. 2004, The White Paper of Real Estate Market.

[6] Housing Department of Tokyo Metropolitan Government. 2004, The Recruitment of Developers of Supplying Urban Type Housing.

[7] SUBCOM, 2004, Building Conversion will regenerate the cities and change its neighborhoods, Nikkan Kensetsu Newspaper Co., Ltd., pp. 90-93.

[8] Housing Department of City of Kanazawa. 2003, The Guide line of Building Conversion.

[9] Toru EGUCHI, et al. 2003, An opinion poll of the user about a conversion for residential use, part.1 and part.2. Summaries of technical papers of annual meeting architectural institute of Japan.

[10] Urban Research Center, Fukuoka. 2003, URC Vol. 57, pp. 8-19.

[11] MITSUI Fudosan Co., Ltd. 2004, AM Square Project, Press Release.

[12] Margarita CASTRO. 2004, Policies Created to Regulate Conversion of Buildings -A Comparison between New York and London-, Summaries of technical papers of annual meeting architectural institute of Japan.

[13] Toru EGUCHI, Shuichi MATSUMURA, Kouichi SATO. 2004, Simulation of the contribution of conversion activity in Tokyo – Estimation of population increase, XXXII IAHS World congress.


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