Research a commercial tenant relocation

When a commercial tenant receives a relocation notice tied to 再開発 (redevelopment) or 建替え (rebuilding), the immediate instinct is to negotiate. The correct first step is research.

NEEDS Property Research: Japanese property research and redevelopment planning

When a commercial tenant receives a relocation notice tied to 再開発 (redevelopment) or 建替え (rebuilding), the immediate instinct is to negotiate. The correct first step is research. The method below organises lease terms, fixtures, trading interruption, reinstatement and negotiation records into a professional assessment. The goal is not to predict a payment amount; it is to build an evidence file that a licensed Japanese professional can use.

Why the records are fragmented

Japanese property records are not one central database. The land register (登記簿) is held by the Legal Affairs Bureau (法務局) for each jurisdiction; cadastral maps are maintained separately; building confirmation applications sit with the local government planning department; and the family registry (戸籍) is kept by the municipal office. There is no unified national portal for private use. Researching a commercial tenant relocation means assembling a case from several official sources, not querying one system.

The two legal frameworks to name correctly are the Building Standards Act (建築基準法) and the Urban Redevelopment Act (都市再開発法). The first governs structural and safety requirements; the second governs coordinated redevelopment projects and their tenant relocation procedures. Neither law promises a fixed payment, and the Urban Redevelopment Act (都市再開発法) does not contain a statutory compensation tariff that applies automatically to every tenant.

What you are researching

A commercial tenant relocation is not one transaction. It is a chain of records: the lease, the ownership chain, the structure’s planning history, the redevelopment scheme’s legal basis, and the negotiation record. Before you instruct a professional, organise these records so that a lawyer, judicial scrivener, or land and building surveyor can assess the situation without re-doing your research.

The legal relationship that matters is the lease (借家) between the tenant and the owner, not a general “eviction” (立退き) narrative. Under the Land and Building Leases Act (借地借家法), a tenant with a registered or provable lease may have renewal rights that survive the original term. The Act is administered through the Ministry of Land, Infrastructure, Transport and Tourism Japan (MLIT), and the operative text is published on e-Gov Japan. The key distinction: a lease that has been recorded in the 登記簿 (land register) is opposable to third parties, including a new owner or a redevelopment project organiser. An unrecorded lease is not automatically invalid, but it is harder to prove against a third party.

The redevelopment framework

For redevelopment, the relevant framework is the Urban Redevelopment Act (都市再開発法), which sets out procedures for projects in a Redevelopment Promotion Area (市街地再開発促進区域). If the premises you occupy sit inside such an area, the local government planning department (市町村都市計画課) will have issued planning documents that name the project organiser, the site boundary, and the relocation schedule. These documents are public. Request them under the information-disclosure procedures of the local government, and cross-check the site boundary against the official cadastral map held by the Legal Affairs Bureau (法務局).

How compensation works

The compensation band for tenants is not set by a single national statute. MLIT publishes guidelines for redevelopment projects, but the actual amount is negotiated between the tenant and the project organiser, and it is typically based on the floor area of the leased space, the remaining lease term, and the cost of moving. The Japan Real Estate Institute (JREI) publishes market statistics, but not a binding compensation table. If you are in a dispute, the practical route is to obtain the project’s relocation plan from the local government, compare it with your lease, and then consult a licensed professional: a judicial scrivener (司法書士) for registration matters or a real-estate appraiser (不動産鑑定士) for valuation. For boundary and parcel issues, the licensed professional is a land and building surveyor (土地家屋調査士).

Your research should follow the official records, not the negotiation. The sequence below is the systematic method used by due-diligence advisers when they assess a property for redevelopment or rebuilding. The same sequence works for a tenant who needs to verify whether an eviction notice is valid.

The research sequence

Step 1: Identify the parcel

Start with the address. From the address, locate the parcel number (地番) on the cadastral map (地図) held at the Legal Affairs Bureau. The cadastral map is digitised but not fully integrated with the land register. You may need to use the National Land Numerical Information (国土数値情報) dataset from MLIT for GIS analysis, but the authoritative boundary is the cadastral map at the bureau, not the GIS layer.

Step2: Obtain the land register (登記簿)

For each parcel, request the land register from the Legal Affairs Bureau. The register shows the owner, the area, and any encumbrances, mortgages, easements, or liens. It is divided into three sections: the header (parcel identification), the ownership section, and the rights section. Cross-check the owner name against the address in the header. A discrepancy is a red flag.

Step3: Check the building register (建物登記簿)

If a structure sits on the parcel, a separate building register exists. It shows the floor area, construction type, and the date of registration. Note: the age on the register is the age at registration, not necessarily the actual construction date. The building confirmation application (建築確認申請) filed with the local government is a better source for the actual construction date and the design standards used.

Step4: Obtain the urban planning map (都市計画図)

The urban planning map shows the zoning category, the floor-area ratio (FAR), the building coverage ratio (BCR), and any road plans or public facility reservations. The FAR and BCR published on the map are maximums. In practice, shadowing, setback, and parking requirements reduce the achievable floor area by 10-30%. The urban planning map is available from the local government planning department.

Step5: Check the fixed asset tax register (固定資産税台帳)

The municipal tax register shows the assessed value of the land and structure. The assessed value is typically 50-70% of market price, so it is not a reliable market proxy. Use it for one purpose: confirming that the structure is actually on the tax rolls, and that the parcel is not a vacant lot with a separate building registration.

Step6: Verify the building confirmation application (建築確認申請)

The building confirmation application is filed with the local government for new construction. It contains the plans, the structural calculations, and the compliance checks under the Building Standards Act (建築基準法). The critical date to check is whether the permit was issued before or after the 1981 seismic code revision. A structure permitted before 1981 may require costly seismic upgrades. A permit issued after 1981 reflects current standards.

Step7: Check the koseki (戸籍) for inheritance chains

If the owner is an individual who has died, the property may have passed to heirs. The koseki shows the family relationship, but it does not show the property. The property transfer is recorded in the land register. Check the koseki to identify all potential co-owners. A single co-owner with a minority share can block redevelopment for years.

Step8: Assess the encumbrance count

Count the number of mortgages, easements, and liens on the register. An encumbrance may be dormant but still requires formal release before sale. For a tenant, the relevant encumbrance is a lease that has been recorded. A recorded lease is opposable to a third party; an unrecorded lease is not.

Step9: Determine the lease term and renewal rights

The lease term on the register may not reflect renewal rights under the Land and Building Leases Act. The Act gives a tenant with a recorded lease the right to demand renewal at the end of the term, unless the landlord has a legitimate reason to refuse. For a redevelopment project, the organiser must acquire the land and structure. If the lease is recorded, the organiser must deal with the tenant as a party with rights. If the lease is not recorded, the organiser may argue that the tenant has no opposable right.

Step10: Compare the published guidelines with the project documents

If the structure sits inside a redevelopment project, the local government will have published the project plan. The plan includes the site boundary, the building plan, and the relocation schedule. MLIT publishes guidelines for tenant compensation, but the actual amount is negotiated. The negotiation is not part of the public record. What is public is the project plan and the relocation schedule. Use those documents to establish the deadline and the site boundary.

Step11: Consult the licensed professionals

For a boundary or parcel issue, consult a land and building surveyor. For a valuation issue, consult a real-estate appraiser. For a registration issue, consult a judicial scrivener. For a dispute over renewal rights, consult an attorney who practices real-estate law. The order matters: the surveyor establishes the parcel, the appraiser establishes the value, the scrivener handles the registration, and the attorney handles the dispute.

Claimed versus real: what to verify

The claimed facts are on the register and the maps. The real facts are on the ground. The cadastral map may show a road width that does not match the actual paved width. The building register may show an age that does not match the actual construction date. The seismic rating is based on design calculations, not post-construction inspection. Actual performance may differ. The recorded lease term may not reflect the renewal rights under the Act. The published compensation guidelines are minima, not the negotiated amount. The survey accuracy of older cadastral surveys may have errors of several metres, especially in rural areas.

The record that matters most for a tenant

The single most important record for a tenant is the building register, because it shows the floor area of the leased space. The compensation band for tenants is calculated per square metre of tenant space. The published guidelines are minima, but the actual negotiated amount varies widely by project and by the tenant’s bargaining position. That position comes from the recorded lease. A recorded lease gives the tenant a seat at the table. An unrecorded lease puts the tenant at the mercy of the project organiser.

Negotiate from facts, not from ignorance

If you are a tenant facing a redevelopment project, do not negotiate first. Establish the facts: the parcel, the structure, the lease, the project boundary, and the schedule. Once the facts are established, the negotiation follows. If you negotiate without the facts, you negotiate from a position of ignorance. The project organiser has the facts. The local government has the facts. The register has the facts. You should have the facts too.

The compensation band is not a fixed table. It is a range, per square metre of tenant space. The published guidelines are minima. The actual amount depends on the remaining lease term, the cost of moving, and the tenant’s bargaining position. That position comes from the recorded lease. If the lease is recorded, the project organiser must deal with you. If the lease is not recorded, the project organiser may argue that you have no opposable right. The difference is the difference between a negotiated settlement and a forced relocation.

The deadline is fixed; obtain it early

The project plan has a schedule. The schedule includes the acquisition phase, the demolition phase, and the construction phase. The relocation deadline is in the project plan. The deadline is not negotiable in the sense that the project will proceed regardless of your individual timeline. The only thing you can negotiate is the compensation. The deadline is fixed by the project plan. The project plan is public. Obtain it early. The earlier you obtain it, the more time you have to establish the facts and negotiate from a position of knowledge.