What exactly is ‘real estate’ all about

What exactly is 'real estate' all about

As one of the real estate strategies in corporate management, the real estate leasing business has attracted attention again in recent years. Among the major companies that own real estate in the city center,

there is an increasing number of cases where ageing company buildings rebuilt to expand the floor area, offices and commercial facilities are added, and stable cash flow is generated by renting them.

Also, there are cases where small and medium-sized enterprises with abundant internal reserves acquire divisional offices in the city center and use them as pillars of their business for the future.

Breakdown and structure of the real estate industry

The real estate leasing business is a type of real estate business. The real estate industry is generally classified into the real estate development industry, immovable brokerage industry, real estate management industry, and real estate leasing industry.

The real estate development industry is called a developer, and develops office buildings, commercial facilities, condominiums, logistics facilities, etc. by themselves and sells or rents them.

Major real estate companies such as conglomerates fall under this category, and companies engaged in redevelopment projects such as Mori Building are also developers.

The real estate brokerage business brokers the sale and rental of real estate. Sales brokers include major developers, local small and medium-sized real estate companies, and franchise chains. Also, there are many relatively small local real estate companies for rental brokerage, and there are several nationwide franchise chains.

In many cases, the above real estate businesses are specialized or engaged in multiple real estate businesses, and are characterized by the need for a license under the Building Lots and Buildings Transaction Business Law.

Next, the real estate management business refers to all operations that are carried out to maximize the income earned from real estates, such as dealing with tenants and dealing with customers.

The owner may manage the business by himself or outsource it to a management company without a license. On the other hand, as a so-called property owner,

the real estate leasing business is a business in which you rent real estate such as land and buildings you own to a third party to obtain rent. You do not need a license and can work as a complementary business separate from your primary business.

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