New York: Large-scale projects joined by major Japanese real estate companies to develop skyscrapers in Manhattan, New York, were completed recently.

The companies are laying their hopes on the results of their major investments in the projects, as demand for office space started to recover in Manhattan, one of the world’s biggest office districts, after the novel coronavirus pandemic eased.

Mitsui Fudosan Co. participated in the project to build a 58-story office building in the Hudson Yards redevelopment area of Manhattan.

The project, which cost the equivalent of over 600 billion yen in total, is one of the largest office building development projects in Manhattan joined by Japanese firms.

Lease contracts have already been concluded for over 80 pct of properties in the new building, according to Mitsui Fudosan.

A development project joined by Tokyu Land Corp. to build the 45-story 425 Park Avenue building in an area hosting major financial companies in Manhattan has also been completed.

This marked the first opening of a large-scale office building in the area in some 50 years.

The equivalent of some 250 billion yen was spent to build the skyscraper. Around 85 pct of its tenants have been decided.

Many workers in the United States started to commute to their offices again as the number of new COVID-19 infection cases has dropped in the country.

In major U.S. cities, the office occupancy rate recovered to some 50 pct of the levels before the pandemic by early September, industry sources said.

Tokyu Land President and CEO Masashi Okada expressed hope for recovery in office demand, saying that people “rediscovered the significance of getting together” after the worst phase of the COVID-19 crisis.

However, it is uncertain whether demand for office space will continue to increase as many companies still allow employees to work also from home.

“We want to look to growth industries in operating our business,” Mitsui Fudosan President and CEO Masanobu Komoda said.

JIJI Press