Initial Cost
After the laborious task of deciding on new office premises and contracting with the owner or landlord comes the equally onerous chore of fitting out the new space and moving in.
The initial cost of moving office or opening one in Japan must be considered within the context of market realities and prevailing prices. For foreign companies the costs involved can also be an unpleasant surprise, especially in Tokyo. Here is a guide to help prepare you for the final phase of your move: settling in.
Budget
Costing a move and office fit-out is difficult because of the variables of office size, the facilities required and quality preferences. The following estimates can only be very approximate, and actual costs may vary by as much as plus or minus 30%.
In all, the cost of moving and fit out could range between 200,000-yen and 400,000-yen per tsubo.
New Office Fit Out Costs (yen/tsubo)*
| Item | Cost range (yen) | Average |
| Architectural | 60,000 - 120,000 | 90,000 |
| Electrical/mechanical | 40,000 - 80,000 | 60,000 |
| Furniture | 70,000 - 130,000 | 100,000 |
| Security | 10,000 - 20,000 | 15,000 |
| Moving | 10,000 - 20,000 | 15,000 |
| Design & project management | 10,000 - 30,000 | 20,000 |
| Total | 200,000 - 400,000 | 300,000 |
| *1 tsubo = 3.3 sq. m = 35.58 sq feet | ||
FURNITURE
Desks, chairs, office partitions, filing cabinets, window blinds and other furniture represent huge fixed costs for most companies. In Tokyo, office and residential furnishings can be leased or purchased second-hand but this is not recommended, as the quality is usually unsatisfactory. Instead, budget-conscious tenants should contact design firms and seek suggestions on curbing costs without sacrificing quality. Sanko Estate can recommend design firms who can give practical advice. Some large multinational firms have even imported furniture from their home country but the cost-effectiveness of this must be thoroughly investigated. Shipping to Japan can take several months and unless the furniture maker has a representative in Japan, problems could occur when reassembling and maintaining the furniture.
CARPETS
Carpeting is a fit-out cost that should be allowed for (and can sometimes be saved). Most building owners lease their offices fully carpeted but the materials used are usually only of standard quality. Replacing the carpets in the reception area, meeting rooms and executive suites could be necessary. Those in the office cafeteria and the server room might also require replacement with special carpets or carpet tiles resistant to dirt.
TELECOMMUNICATIONS
To relocate an existing telephone network, budget for 25,000-yen per person for installing the necessary wiring, and another 25,000-yen per person should you want to move your existing LAN. Installing a new phone system will cost 85,000-yen per person, however, and a new LAN 65,000-yen . Thus, newly establishing firms should allow for 150,000-yen for each staff member.
Telecommunication Costs (yen/employee)*
| Item | Cost range (yen) | Average | |
| Moving an existing network | |||
| Cabling only (using existing PBX) | TEL | 20,000 - 30,000 | 25,000 |
| Cabling only | LAN | 20,000 - 30,000 | 25,000 |
| Total | 40,000 - 60,000 | 50,000 | |
| Installing a new network | |||
| Cabling + new PBX | TEL | 70,000 - 100,000 | 85,000 |
| Cabling + new PBX | LAN | 30,000 - 100,000 | 65,000 |
| Total | 100,000 - 200,000 | 150,000 | |
FINAL TOUCHES
Indoor plants leased from a nursery, and fresh flowers arranged daily in the reception or meeting rooms will gladden the heart but also add to office costs by up to 100,000-yen per month. Your staff and guests will also be delighted if you lease a coffee machine maintained regularly by the leasing company and provided with a regular supply of ground coffee and filter papers. But this service will cost about 20,000-yen per month. Coffee deliveries from a nearby coffee-shop could add to operating expenses by between 10,000-yen and 30,000-yen per month for a staff of between 10 and 15 people.
Stressed out about fitting-out?
Don't be. Sanko Estate can offer advice to clients to save time and money. We can also provide clients with lists of design companies and firms installing telecommunications/LAN systems whose workmanship and cost effectiveness are guaranteed and whose expertise in project management we can vouch for.
Our International Department will be more than happy to assist in your every question and concern. We look forward to hearing from you.