Apple Japan Office: Even though Apple Inc. (NASDAQ:AAPL) may be putting a lot of resources in the Chinese market, this does not mean the company is overlooking other countries in the same region.
Bloomberg is reporting that the company has “plans to move its Tokyo headquarters to the Roppongi Hills complex from Shinjuku as early as April, according to two people familiar with the iPhone maker’s plan.”
As you can see, the company is not wasting anytime making this change.
At this time, it is thought that Apple Inc. (NASDAQ:AAPL) will occupy one or two floors at the multi-billion development Roppongi Hills.
Why would the company want to relocate at this time? Are they looking for more space? Are they hoping to save money?
The Bloomberg article goes on to explain this in greater detail, with the help of Kayoko Hirao, the head of Japan research at DTZ Research in Tokyo:
“Rents of large office buildings in central Tokyo peaked in the second quarter of 2008 and have fallen 40 percent from the peak. It is a good time to consider an office relocation to the central business area and it should be a good chance for Apple. The office rental market will recover this year.”
If the information from Hirao is correct, it appears that Apple Inc. (NASDAQ:AAPL) may be making this move in an effort to save money. By relocating before prices increase, the company will be able to lock in a better deal.
Should the company decide to move forward with the relocation, they don’t have to worry about being alone in the development. At the present time, many other well known corporations have space in the 54-story office building including Barclays Plc. and Goldman Sachs Group Inc.
While there is still some speculation as to how the relocation is going to take place, including what the company will do with its former headquarters, here is some more information from the same Bloomberg piece:
“The Cupertino, California-based company informed its landlords at the Tokyo Opera City Tower, and the current lease will be terminated by the end of June, one of the people said. Owners of the building include Japan Real Estate Investment Corp. and NTT Urban Development Corp.”
“The decline in Tokyo office rents has seen more companies relocating as they seek to upgrade office space after the March 2011 earthquake. Morgan Stanley said last month it signed an office lease with Mitsubishi Estate Co. to move its Japan operations back to Tokyo’s Otemachi business district amid “attractive conditions for tenants of prime commercial locations.”
With so many other companies making the same type of change, it is only natural for Apple Inc. (NASDAQ:AAPL) to relocate.
How do you feel about this move? Do you think it will benefit Apple in the long run?
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DISCLOSURE: I have no positions in any stock mentioned.
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