Japan’s decades-long love affair with status-symbol office towers is now fading, as the pandemic upends work styles and puts a strain on company finances.
In a country where companies have long taken pride in owning their buildings, advertising agency Dentsu Group Inc. and logistics firm Nippon Express Co. are now considering selling their Tokyo headquarters. Avex Inc., an entertainment company, also plans to offload its head office in the capital.
Companies around the world are paring office space as workers stay at home during the pandemic, giving firms an opportunity to save costs and raise cash. In Tokyo, office vacancies have surged to a five-year high and may continue to climb as the government urges people to work remotely to curtail the latest wave of coronavirus cases.