The Mitsui Fudosan Group’s main business activities are implemented through its leasing business, property sales business, management business, and facility operations business. In line with this structure, we have adopted the five accounting segments of Leasing, Property Sales, Management, Facility Operations, and Other from fiscal 2023. Furthermore, revenues and profits generated by individual projects are classified into these segments and can be allocated to a single segment or multiple segments.
Note: The categories shown here are to give an idea of the segments for recording revenues and profits, however, the actual details might differ.
As a Group of leading comprehensive real estate companies in Japan, the Mitsui Fudosan Group is developing a real estate business based on diverse asset classes.
Overseas, we are also expanding our business through the careful selection of asset classes matched to circumstances of the economies, cities, and other factors in the areas into which we expand.
Diverse Asset Classes
Our Globally Expanding Assets
Office
Market Environment
Risks
Increase in office supply and intensifying competition to attract tenants in 2025
Increases in such expenditures as construction, operating, and maintenance costs
Opportunities
Heightened mindset toward human capital management
Need for high-specification office buildings aimed at improving work engagement and attracting talent
Diversification of times, places, etc. for working associated with changes in working styles
Expansion of corporate initiatives to achieve carbon neutrality
Competitive Advantages
Medium- to long-term relationships with about 3,000tenants*1
WORK STYLING members: Approx. 290,000*2 Number of office locations: 554 (nationwide)*2(WORKSTYLING 134; Partnership with STATION BOOTH/DESK 420)
Mixed-use type neighborhood creation know-how that goes beyond offices
Diverse intangible services that contribute to solving tenant management issues
Achievement of integrated safety and security that spans from development to operational administration under Group management, and disaster-resistant neighborhood creation
*1 As of the end of March 2024 *2 As of the end of July 2024
Business Strategies
Develop of ces where you want to work in cities you want to visit
Differentiate entire cities by promoting the creation of mixed-use neighborhoods
Strengthen solution proposals and service menus tailored to tenant companies; provide optimal workstyles for each customer by increasing workplace options
Mitsui Shopping Park members: Approx. 14.0 million*1
Customer contact points that combine digital and real facilities, such as the MSP app and &mall official online shopping site
*1 As of April 1, 2024
Business Strategies
Build a one-of-a-kind omni-channel platform that combines various services, including retail facilities, sports and entertainment, and e-commerce; create new experiential value by customer.
Leverage relationships cultivated to date through business activities and provide services to resolve business issues for retail tenants and business partners.
Work to evolve from a retail facility developer to a commercial service platform provider; diversify revenue sources and innovate business models by providing a wide range of value.
Intensification of competition for land acquisition due to entry of new players
Overheating of leasing competition due to high-volume supply of new properties
Opportunities
Increased efficiency and consolidation of the logistics function in response to relocation needs from aging warehouses and growth in the e-commerce market
Increased labor saving and the growing need for mechanization through DX against the backdrop of labor shortages
Competitive Advantages
Track record of advanced logistics facility development extending to 76 properties*1 in Japan and overseas
Close tenant relationships that enable provision of CRE solutions and direct sales to cargo owners
(Office tenants: Approx. 3,000*1, Retail tenants: Approx. 2,500*2, etc.)
Ability to propose logistics solutions that leverage DX
Diverse collaborations and business methods, including joint ventures with originators
MFLP quality that achieves industry-leading customer satisfaction
*1 As of the end of July 2024 *2 As of April 1, 2024
Business Strategies
Further evolve as an industrial platformer by strengthening collaboration with tangential companies and building a community including client companies.
Contribute not only to solving issues within logistics warehouses, but also across the entire supply chain by diversifying the MFLP brand, putting forward various solution proposals utilizing digital technology, and providing GX support.
Decline in housing-related demand due to rising interest rates and worsening business sentiment
Contraction of domestic housing-related market due to population decline
Opportunities
Heightened awareness concerning housing associated with diversification of customers’ lifestyles
Increased use of information acquisition methods through both real and digital options, including online business negotiations and the use of AI
Focusing on environment-friendly product planning to realize a decarbonized society
Focusing on the stock market due to a decrease in the number of new properties and aging buildings
Competitive Advantages
Condominium unit sales: Approx. 240,000*1
Mitsui Housing Loop members: Approx. 340,000*2
Brand power asNo.1 in brokered deals for 38 consecutive years
A lineup of varied products and services related to housing (Leasing/sales, new/used, condominiums/detached houses, senior
residences, management/operation/brokerage, etc.)
Planning and development capabilities for realizing a product lineup of city center, large-scale, and redevelopment
*1 As of the end of March 2024 *2 As of the end of June 2024
Business Strategies
Strengthen the ability to make proposals to customers through the integrated management of customer data and enhance collaboration among Group companies
Provide one-stop service for every customer need
Strengthen efforts to meet the needs of af uent and foreign customers; expand points of customer contact by enhancing lifestyle-oriented products and services
Incidence of over-tourism owing to the rapid inbound recovery
Increase in operating costs due to upswings in various commodity prices and utility expenses
Opportunities
High evaluation of Japan’s tourism resources from home and abroad
Rapid recovery in domestic spending by foreign visitors to Japan and expectations for further growth
Competitive Advantages
Mitsui Garden Hotel members: Over 960,000*1
Number of directly managed guest rooms: Approx.13,300 (domestic and overseas)*1
Development of 14 hotel and resort brands meeting diverse customer needs, from luxury to lodging-focused brands
Establishing compatibility with MSP/LOOP points; attraction of restaurant tenants by leveraging retail tenant relations; collaboration with WORK STYLING shared offices
*1 As of the end of July 2024
Business Strategies
Provide high-quality stay value by creating an environment where staff can focus on serving customers through DX.
Propose personalized stay experiences through the use of customer data and expand the domestic and international customers base.
Changes in office and housing needs associated with remote work and other changes in working styles
Persistent inflation including building costs and continued high policy interest rates
Opportunities
Preference for high-quality properties in favorable locations due to changes in the need for real venues
Increase in demand for “Laboratory and Office” buildings associated with the growth of the life science industry
Increase in business opportunities in the U.S. Sun Belt Area with continued population influx
Asian Market
Risks
Changes in the need for real retail facilities associated with growth in e-commerce
Geopolitical risks caused by such factors as mutual tension between the United States and China
Opportunities
Expansion of demand for consumption of experiences, etc., unique to real retail facilities
Increase in business opportunities for each asset on the back of various factors, including economic growth, upswings in middle class and personal consumption, and the advance of urbanization
Competitive Advantages
“Engaged in Every Asset Class,” an “Expansive Value Chain,” and “Development Capabilities Necessary for Creating Neighborhoods”
A History of Over 50 Years in Overseas Business
Promoting Localization by Recruiting and Promoting Excellent Local Employees
Business Strategies
Further develop and evolve overseas business
Please see “Further develop and evolve overseas business,” the first path of & INNOVATION 2030, the Group’s long-term management vision.
Area strategy
[Europe and North America]
Develop with a focus on office buildings and leasing housing in a mature, highly transparent, and liquid real estate market. ■ Base cities
New York, San Francisco, Los Angeles, Dallas, Honolulu, London
[Asia]
Capture growth in the Asian market where consumer spending is expanding and urbanization is progressing; engage in development with a focus on condominiums, retail facilities, and office buildings. ■ Base cities
Shanghai, Taipei, Bangkok, Bengaluru, Kuala Lumpur, Singapore, Sydney
Overseas partnership strategy
Advancing business in each region with approx. 65 partner companies ■ Major partner companies
[Europe and North America]
USA Related (company name), Tishman Speyer, Hines
UK Stanhope, EDGE Technologies
[Asia]
Singapore Hong Leong Group
Taiwan Cathay Real Estate Development Co., Ltd.
