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April 25, 2024
Successful entrepreneurs usually tell aspiring ones that “Entrepreneurship is not for the faint-hearted.” This saying generally goes for any entrepreneur who wants to start any business of any scale or nature. But as for the entrepreneurs looking to dive into real estate, this saying may have to be modified in a certain way. Perhaps a more fitting expression would be, “You sure you want to do it, son.…?”
Well, that might sound a bit exaggerated, but it underscores the unique risks inherent in real estate compared to other industries. While the rewards of success are high, of course, the other side comes with challenges and problems that only some players can maneuver. Only a handful players possess the right skill sets, spirit, grit, and mettle to break through all barriers and make it regardless. A very few, like Lead-Real Estate.
Founded in 2001, Lead-Real Estate is a real estate company headquartered in Tokyo, Japan. The company offers a wide array of real estate services which includes planning and development of luxury residential properties, including single-family homes and condominiums across Tokyo and Kanagawa prefecture, hotel operations and residential leasing of apartment building units to individual customers in Japan and Dallas, Texas.
Despite going through numerous changing market trends and recessions over the years e, the company has been able to stand through the test of time and has demonstrated resilience and adaptability. Initially, the company started off as a limited liability company and was later reorganized as a joint-stock corporation in November 2003. “The company was established with an aim to become a real estate developer with high customer satisfaction,” says Eiji Nagahara, its Representative Director and Chief Executive Officer.
In 2004, in its second year, the company did sales of over 2 billion yen with a profit exceeding 100 million yen. This success can be attributed in part to the Japanese government’s monetary policy at the time, which was favorable to small and medium-sized businesses. However, the trajectory towards becoming a publicly-listed company in Japan experienced a significant setback with the global financial crisis and the Lehman Brothers collapse in 2008. This severely impacted Lead’s year of operation, resulting in a challenging financial situation with sales of 5.5 billion yen overshadowed by nearly 5 billion yen in debt. It took the company about five years to repay.
Following that difficult phase, it has since been an upward curve for Lead-Real Estate. In 2014, the company started its apartment rental business in Las Vegas and Los Angeles. In September 2017, Lead Real Estate Global Co., Ltd was established in Dallas to carry on the single-family development business and luxury home rental business. Subsequently, on September 27, 2023, the company was listed on the NASDAQ Global Market in the United States.
The secret sauce to the company’s growth has been its out-of-the-box thinking and thorough understanding of the high-end real estate market. “More than 70% of our buyers are high-end users,” says Eiji. The company has adeptly integrated its digital transformation business, Glocaly, an interactive media platform, into its broader business operations. The company believes this integration, blending luxury real estate development with AI and video technology from Glocaly, coupled with its hospitality business in the hotel sector, has been pivotal in enhancing its customer satisfaction and securing its position as a notable market player. Moreover, the company’s biggest strength lies in the procurement, planning, and development of high-end real estate. “As for hotels, we focus on the privacy of our guests and provide them with safe and secure services, including innovative offering of single-room floors. The result is a very high level of customer satisfaction,” explains Eiji.
Lead-Real Estate’s success is further highlighted by the performance of their family-style hotels, particularly in Tokyo, which have garnered high ratings of 9.5 points or higher on Booking.com. Despite the global Coronavirus pandemic, the company was able to maintain a monthly occupancy rate of more than 50% throughout the downturn. Notable among their ventures is the launch of a 10-story, eight-room family hotel in Asakusa, Tokyo, as well as a 9-story, eight-room hotel in Akihabara, Tokyo. Both hotels have achieved high ratings on both Booking.com and Airbnb, marking noteworthy milestones in the company’s developments.
Apart from their business in Tokyo, Kanagawa, and Ebisu, Lead-Real Estate’s expansion into the U.S. and Philippines underscores its commitment to global expansion. The company plans to expand its real estate holdings and launch a luxury existing home fund in the U.S. With a focus exclusively on local American investors and local Americans, Lead-Real Estate has excelled in the Dallas new home market.
In the Philippines, the company plans to have a new office building in central Manila early this year. Lead-Real Estate plans to establish a local subsidiary in the Philippines, which signifies Lead-Real Estate’s dedication to ensure a deeper understanding and stronger network in local markets.
In order to foster a sense of unity and purpose among all Lead-Real Estate employees, Lead-Real Estate adopts a routine for its employees to clean the company every morning, followed by a meeting. The morning meetings at the company reflect the essence of the Japanese spirit, where employees read the company motto and prepare for the day’s work.
Over the years, the company has helped a number of its clients fulfill their dreams of owning their ideal spaces, building their dream business projects, and delivering world-class hospitality. The numerous awards and recognitions it has garnered thus far is a testament to the quality of the services it offers. Among its numerous achievements, Lead-Real Estate has been honored with distinctions such as the National Association of Realtors (NAR), the Certified International Property Specialist (CIPS) license, and the Good Design Award 2020. The company’s journey, marked by innovation and resilience, has led to achievements including its NASDAQ listing and Mr. Eiji Nagahara being recognized as a top 10 APAC CEO in 2023. These honors highlight Lead-Real Estate’s leadership and ability to navigate through challenging market conditions.
From its humble beginnings in 2001 to its current status as a listed company on the NASDAQ Global Market, the company has consistently demonstrated a commitment to quality, customer satisfaction, and adaptability to the ever-evolving real estate industry.
Pull Quote:
“Our strength lies in the procurement, planning and development of high-end real estate.”
Description of the Company:
Lead Real Estate is a company primarily engaged in high-end real estate planning and development in Tokyo, Kanagawa, and Sapporo, Hokkaido.
Company Name: Lead Real Estate Co., LTD
Founding Year: 2003
Office Locations: Tokyo; Los Angeles; Plano, TX; Hong Kong
Official Website of the Company: https://www.lead-real.co.jp/en/
Name of the Featured Leader: Eiji Nagahara (Representative Director)
Designation of the Leader: Representative Director
