Both the public and private sectors plan to implement many types of urban renewal projects particularly in the Tokyo metropolitan area. Japanese commissioning entities of the major renewal projects have recently begun highlighting U.S. advanced construction-related techniques (e.g., VE, PM, CM, landscaping design, interior design and “Design Architect” services). Demand for related services is expected to grow steadily.

The Japanese government has designated 63 areas as “Priority Urban Renewal Areas.” Some of these projects have already started but most of them are still at a planning stage. Total investment value data is not available, although the total number of areas and their sizes in select locales are as follows:
• North Japan: four areas totaling 288 hectares
• Tokyo and the environs: 24 areas totaling 3,290 hectares
• Nagoya and the environs: five areas totaling 509 hectares
• Osaka and the environs: 20 areas totaling 1,693 hectares
• Southwest Japan: 10 areas totaling 644 hectares
(Source: Cabinet Office)

The history of urban renewal in the United States is longer than that in Japan. Therefore, many U.S. developers, architectural design companies, and general contractors have accumulated diverse experience in implementing large-scale development projects. This experience should offer competitive advantages to U.S. firms. Large projects tend to have multinational owners and tenants. Such an environment is generally beneficial to U.S. firms because the owners and tenants are usually receptive to the idea of working with a U.S. partner.

Ways to participate in Japan’s urban renewal market vary by the nature of a company’s expertise as well as the nature of a project. The following are generalized steps for U.S. companies to test the marketability of their services in Japan’s market.

Step 1: Collect Information.
Ministry of Land, Infrastructure and Transport MLIT and Urban Renaissance Agency (URA) publicize general information on urban renewal projects. In most cases, though, they provide information only in Japanese.

Step 2: Get the Word Out.
Although Japanese commissioning entities endeavor to locate information on advanced international techniques and expertise, they often have difficulty finding a firm’s best contact. So, U.S. companies should send their corporate contact information directly to the major commissioning entities. And that information should be in Japanese because many officers at commissioning entities do not speak or read English.

Step 3: Visit Japan.
A good deal of business in Japan depends on established personal relationships. Therefore, we suggest a visit to Japan at the earliest possible stages when your firm decides it wants to pursuer opportunities here. As a first step, you might visit simply to exchange information.

Companies planning to engage in construction services must establish a Japanese office and obtain appropriate licenses. Companies that design buildings and supervise construction are also required to obtain a “First Class Architect License.” Without the appropriate Japanese licenses, U.S. companies are NOT eligible to apply for urban renewal projects. In contrast, licenses are not required if a company plans to engage in construction- related consulting services or will subcontract to a licensed company. Of course, a U.S. firm should confirm these points with appropriate legal counsel that is qualified to interpret Japanese construction law and regulations.