Sublease
As professionals in building management, we provide reliable subleasing services that only true experts can deliver.
We offer the optimal solutions to stabilize the revenue of building owners and reduce their management workload, fully tailored to their needs.
Subleasing is an arrangement in which a real estate operator (the subleasing company) leases an entire property owned by a building owner and then relets it to tenant companies.
As a building management method that allows building owners to secure stable income while mitigating risks such as vacancies and rent delinquencies, it has been attracting increasing attention in recent years.
Key Features of Sun Frontier’s Subleasing Services
Sun Frontier’s subleasing services continue to grow on the foundation of the trust we have earned from building owners through our leasing operations.
Our value-creation capabilities in the Replanning® business (real estate revitalization), our strong tenant-management expertise developed through property management, and our leasing capabilities work together organically.
These three strengths combine to deliver a level of comprehensive service that sets us apart from other companies.
Flexible Subleasing Options
We can provide subleasing services not only for entire buildings but also from a single floor or section.
Based on the characteristics of the property and the specific needs of building owners, we propose the most suitable subleasing plan.
Enhancing Asset Value
Rather than merely subleasing properties under a master lease agreement, we leverage the extensive expertise and experience cultivated through our Replanning® (real estate revitalization) business to carry out renovation and value-enhancement work at our own expense.
This approach increases the property’s added value and allows us to offer it to the market as an attractive and competitive office space.
Credibility
As a company listed on the Tokyo Stock Exchange Prime Market (Securities Code: 8934), we possess a high level of financial and corporate credibility.
Because a subleasing agreement represents a long-term relationship with building owners, we believe that our strong credibility is an essential factor that enables owners to enter into the contract with confidence.
【Main Terms of the Subleasing Agreement】
- Eligible Properties：Office buildings and retail buildings located in Tokyo’s central five wards (Chiyoda, Chūō, Minato, Shinjuku, and Shibuya), plus Shinagawa, Meguro, Taitō, Bunkyō, and Toshima. Details regarding size and building age can be discussed individually.
- Contract Period：The contract term can be set flexibly based on the characteristics of the property and the specific needs of building owners.
- Rent Guarantee：We pay a fixed monthly rent regardless of vacancy status. The timing and conditions for rent reviews or adjustments are clearly defined at the time of contract signing.
- Renovation Work：Renovation and value-enhancement work is carried out at our own expense.
- Support for Building Owners：A dedicated representative provides consistent support from contract initiation through ongoing operations. All relevant terms are stated in the agreement, and our representative will explain them carefully at the time of signing.
Sun Frontier’s Subleasing (Master Lease) Scheme Diagram
From a single section or one floor to an entire building, Sun Frontier carries out renovation work at our own expense and fully manages the property on behalf of building owners.
- Rent Payment
- Report Submission
- Support for Various Inquiries / Consultation Services
- Tenant Recruitment
- Tenant Screening and Sublease Contract Execution
- Lease Renewal Procedures
- Lease Termination Procedures
- Arrangement of Renovation/Repair Work
- Follow-up and Collection of Unpaid Rent
- Handling of Complaints
Track Record of Sun Frontier’s Subleasing Services
T Building (Shiba Park, Minato-ku, Tokyo)
Completed: November 1987 Structure: 8 floors Subleasing Coverage: 3 sections (206.91 tsubo)
Approaching its 40th year since completion, the building faced prolonged vacancies for two years due to aging interiors and facilities, as well as issues such as having only one stall in the women’s restroom—factors that discouraged prospective tenants. After Sun Frontier entered into a subleasing agreement and carried out renovation work aligned with modern needs (including adding more women’s restroom stalls), the property’s appeal increased significantly, leading to the elimination of the vacancies.
D Building (Shiba, Minato-ku, Tokyo)
Completed: June 1993 Structure: 8 floors with 1 basement level Subleasing Coverage: 1 section (65.91 tsubo)
Because the owner was busy with their core business, leasing activities had been fully entrusted to a management company. As a result, adequate marketing efforts were not carried out, leading to a vacancy that persisted for a full year. Given the owner’s intention to “focus on the core business” and “avoid spending time on rental management,” Sun Frontier entered into a subleasing agreement and provided support for stable, hassle-free operations.
H Building (Hongo, Bunkyo-ku, Tokyo)
Completed: February 1991 Structure: 6 floors Subleasing Coverage: 1 section (53.73 tsubo)
After the departure of the main tenant who had occupied the building for many years, the entire building became vacant. With the property now over 30 years old, the owner was concerned about its competitiveness as a rental building. After reviewing the value-enhancement work we proposed—carried out at our own expense—the owner agreed with our approach, leading to the conclusion of a subleasing agreement with Sun Frontier.
Trends in the Number of Subleased Sections Managed by Sun Frontier
While Tokyo’s office market has remained relatively stable, many building owners are increasingly concerned about vacancy risks stemming from building age and location (area disparities). In addition, there are diverse needs among owners: those who find building management and operations burdensome due to aging, those considering asset succession or inheritance planning, and corporate owners who wish to entrust building operations to professionals because they are busy with their core business. For addressing such challenges, subleasing is an effective solution that helps avoid vacancy risks and secure stable income. Demand for subleasing is expected to continue growing in the years ahead.
Sun Frontier’s Building Management Support
Sun Frontier, as a specialist in building management, boasts a track record of managing over 500 buildings and maintaining an occupancy rate of more than 90%. With the tenant retention and lease renewal capabilities and tenant attraction capabilities cultivated through more than 700 leasing transactions annually, we help ensure stable building operations. We directly address the wide range of challenges involved in building management—such as economic fluctuations, changes in rent levels, building aging, equipment issues, relationships with neighboring properties, and tenant relations—and provide accurate, tailored solutions to the unique concerns of each building owner.
Property Management（PM）
This is a service in which we manage and operate a property on behalf of building owners based on an entrusted management agreement. Sun Frontier handles tenant relations, repair coordination, lease renewals, and other operational tasks, supporting building management in accordance with the owner’s instructions. Please note that a property management (PM) contract does not include rent guarantees, allowing for flexible operations tailored to the owner’s policies.
Leasing Management（LM）
This service covers tenant recruitment and lease contract execution for vacant properties, carried out through collaboration between our leasing division and our partner brokerage firms.Unlike property management (PM), leasing management (LM) is a specialized service that focuses primarily on leasing activities, such as tenant brokerage and tenant acquisition.
Sublease
This contract structure includes rent guarantees in addition to the property management (PM) services. Sun Frontier master-leases the property from the building owner and subleases it to tenants, thereby assuming the vacancy risk on behalf of the owner. As a result, the owner receives a stable monthly income under a consistent and reliable revenue structure.
| Items |
Property Management（PM） |
Leasing Management（LM） |
Sublease |
|---|---|---|---|
|
Main Purpose |
Operation and Management of Small to Medium-Sized Buildings |
Tenant Recruitment and Lease Contract Execution |
Rent guarantee + subleasing operations for properties with high vacancy risk |
|
Contract Structure |
Property Management Agreement |
Brokerage / Intermediary Agreement |
Master Lease Agreement (Sublease) |
|
Scope of Services |
Repairs, cleaning, complaint handling, lease renewals, etc. |
Marketing and advertising, property viewings, lease contract execution, etc. |
Tenant relations, rent collection, repairs, contract administration, etc. |
|
Rent Guarantee |
None |
None |
Yes (fixed or variable type) |
|
Details of Sun Frontier’s Property Management click here |
For details on Sun Frontier’s Leasing Management services, click here |
Sun Frontier’s Subleasing — Back to Top |
