Take a look around you in whatever city you abode in? Do you notice any differences lately? Being in real estate for so long, I have this habit of looking at buildings all the time. Recently in both Tokyo and Nagoya, I am noticing lots of vacancies....... Lots of buildings with very few lights on.
Our company was talking with Leo Palace earlier this week. It would appear that there are some residential buildings around in Nagoya with occupancy at 0%........ Alot of these were buildings cancelled by the recruiting companies of Toyota and other manufacturers at the downturn of the economy. The recruiting companies would sub-lease whole buildings to house the people they were dispatching to the factories. Not a laughing matter for a number of owners these days, who are now eating up their reserves in order to meet loan payments.
Office rents are ready to come down significantly in Nagoya, with what would appear to be a ridiculously silly number of brand new high end offices popping up all over the inner city in recent months. Something has to give way!
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