NTT Urban Development Market Position
Real Estate Industry Trends
The office leasing market continues to see high average vacancy rates for office buildings and weak market rents. The condominium sales market generally enjoys a favorable sales situation, particularly in central Tokyo partly thanks to the effects of economic policies.
NTT Urban Development Market Position
The NTT Urban Development Group has expanded its business operations by developing low book-value properties in prime locations transferred from our parentcompany NTT at the time of our establishment. In fiscal 2010, our leasing business produced approximately 61% of the NTT Urban Development Group's total net sales. Over half of the revenue from the Group's asset portfolio comes from properties in the Tokyo metropolitan area, with the remainder deriving from properties in major regional urban areas. Many of our properties are local landmarks and include a complete palette of office buildings,commercial facilities, and rental condominiums featuring a diverse range of property uses and tenants. Also, the age range of our property holdings spans structures that are over 21 years old, which are candidates for future reconstruction or as seed lots for new development, to newer buildings less than 5 years old. The diversity of our asset portfolio generates a stable source of scheduled renovations, reconstruction, and other operations, and the balance of our assets creates a solid business foundation. In addition, we are developing and maintaining high-quality properties in each region and applying our accumulated know-how in the planning and development of telecommunications stations to provide the communications services essential to social infrastructure. To leverage our strengths in these areas, we are aggressively acquiring real estate from the NTT Group and external sources for future development projects while progressively advancing our current development projects.
Age Range of the NTT Urban Development Property Portfolio (%) (As of March 31, 2011)
