Commercial Real Estate Data Provider "estie" and DeNA-Backed Repair DX "Smart Shuzen" Establish Joint Venture

Estie | 09 Jul 2026

Released by: estie Inc.
Date: July 9, 2026, 9:00 AM

Overview

estie Inc. (Headquarters: Minato Ward, Tokyo; CEO: Akira Hirai), which supports decision-making through Japan's largest commercial real estate data and industry-specialized AI, and Smart Shuzen Co., Ltd. (Headquarters: Shinjuku Ward, Tokyo; CEO: Kenjiro Toyoda), which provides quotation estimates and construction support services for large building repairs, have entered into a joint venture agreement and established the joint venture company "estie Smart Reform Inc." in June 2026.

The company will provide unprecedented one-stop services that visualize renovation ROI and provide comprehensive support from planning through competitive bidding to construction completion.

Background for Joint Venture Establishment

In recent years, amid rising construction costs and declining new apartment supply, interest in increasing asset value through renovation of existing properties has grown among investors and asset management companies. The renovation market order amount expanded to a scale of 13.8 trillion yen in fiscal year 2024 (※1).

While interior renovation is an effective means of enhancing property value, challenges exist in predicting post-renovation rental increases, construction costs, construction timelines, vacancies, and downtime (※2) beforehand, making ROI-based decision-making difficult. Additionally, renovation design, competitive bidding, contractor selection, and construction progress verification require specialized knowledge and multiple approval processes, placing a significant burden on property management staff.

Against this background, properties that could achieve higher ROI through renovation and value enhancement are not receiving sufficient renovation implementation.

Real-World Survey Findings: Asset Management Professionals' Challenges

Only 4.8% Successfully Achieving Value Enhancement Through Renovation

A survey of asset management company employees involved in interior renovation (acquisition and mid-term operations) revealed that only 4.8% responded that they "sufficiently realized" value enhancement through interior renovation. Meanwhile, 57.1% responded that they "have not sufficiently realized" this, revealing that most stakeholders see room for improvement in value enhancement through interior renovation.

Specific Challenges Identified

Detailed interviews revealed the most common challenges:

61.9%
- "Difficult to accurately assess and predict actual rental increase (ROI) following renovation implementation"
57.1%
- "Obtaining and comparing competitive bids from multiple companies requires enormous time and effort"
47.6%
- "Lack of resources and expertise to professionally monitor construction quality and schedule management"

Strong Interest in Integrated Services

Regarding intent to use new services that would provide one-stop support from renovation investment decisions through execution, response was exceptionally high at 85.7%.
(This combines "Very interested in using" (57.1%) and "Somewhat interested in using" (28.6%))

Survey Overview

Survey Title: Questionnaire on Value Enhancement (Interior Renovation)
Target: Real estate fund employees involved in interior renovation
Number of Respondents: 21 valid responses
Survey Period: June 5 - June 10, 2026
Survey Method: Google Forms
Conducted by: Smart Shuzen Co., Ltd.

Business Overview

To address the challenges identified above, estie, which provides commercial real estate data and industry-specialized AI, and Smart Shuzen Co., Ltd., a DX company in the repair construction sector, will leverage their respective strengths to provide the following services:

① Post-Renovation Rental Simulation

Utilizing rental analysis results based on estie's commercial real estate data, we will present clients with post-renovation rental increase potential by considering the target property's location, surrounding market, property characteristics, and assumed specifications.

This enables clients to assess revenue improvement effects from renovation before implementation and incorporate these into investment decisions.

② Renovation Design

Smart Shuzen Co., Ltd.'s dedicated designers will propose renovation plans based on the simulation results above.

We will balance specifications expected to increase rental value with those unlikely to result in over-investment, providing renovation design support that maintains cost-effectiveness. By beginning design before tenant move-out and accelerating construction start following lease termination notices, we also achieve shortened delivery timelines.

③ Competitive Bidding Leveraging Market Principles

Utilizing Smart Shuzen Co., Ltd.'s accumulated construction estimate data, bid estimation expertise, and contractor networks, we will obtain multiple competitive bids for each renovation plan. We analyze obtained quotations regarding construction scope/details, amounts, and timelines, create detailed reports, and support comparison and selection.

④ Professional Construction Quality Monitoring

Smart Shuzen Co., Ltd. consultants will accompany the project through construction completion following contractor selection, ensuring appropriate construction and service quality.

Future Vision

The joint venture company will support property value enhancement through renovation and begin providing services primarily to real estate fund owners and other property owners, aiming to expand client adoption and success track records.

Going forward, we will accumulate expertise and data regarding post-renovation rental results, construction costs, construction timelines, leasing periods, and construction quality, pursuing further efficiency improvements and advancement in renovation-related operations.

Executive Comments

estie Inc. CEO Akira Hirai

Through our service provision to real estate industry customers, we have felt growing interest and demand for property value enhancement through renovation. However, renovation investments face challenges in predicting rental increase potential and assessing construction cost appropriateness, with insufficient mechanisms for data-driven decision-making. We believe significant room remains for solutions through data and AI.

We feel greatly reassured to collaborate with Smart Shuzen Co., Ltd., which possesses deep expertise and achievements in the renovation domain. By combining estie's commercial real estate rental data and industry-specialized AI with Smart Shuzen Co., Ltd.'s construction cost data and construction networks, we will provide seamless support throughout the process of property value enhancement through renovation.

Smart Shuzen Co., Ltd. CEO Kenjiro Toyoda

To date, we have pursued cost optimization and owner cost reduction for large building repairs by leveraging our strengths in high-precision construction estimate assessment and construction networks based on approximately 4 billion yen monthly quote support for apartments and buildings. Recently, rising construction costs have increased renovation interest, yet upside risks in construction costs and opaque bidding remain major investment barriers.

We are delighted to establish a joint venture with estie, which possesses overwhelming strengths in real estate data and AI utilization. By fusing estie's high-precision rental assessment data with our cultivated cost management capabilities and professional consulting expertise that accompanies projects through completion, we will build processes offering security and confidence from investment decisions through construction.

Joint Venture Company Overview

Company Name: estie Smart Reform Inc.
Address: 4F Tokyo Midtown East, 9-7-2 Akasaka, Minato Ward, Tokyo
Establishment Date: June 1, 2026
Business: Interior Renovation Consulting
URL: https://www.estie.jp/products/smart-reform