Tokyo's Kabutocho district is a financial hub

centered on the city's stock exchange.

It's long played a vital role in Japan's economic development.

For decades, it bustled with stockbrokers and securities dealers.

Japan's first bank was established here back in the late 19th century.

Recently a number of hip new restaurants and a hotel have opened up here.

A redevelopment project is underway to reinvent the neighborhood.

What kind of place is this?

Look at that! Look at this, too.

So we set out in search of its past, present and future.

Today we dive into Kabutocho.

Kabutocho is about a 15-minute walk east of Tokyo Station.

Hi, I'm Felicia. I'm in Kabutocho.

Kabutocho is a financial district with a long historical background,

just like Wall Street of New York, or the City of London.

So let's go discover more of what this interesting city holds.

Kabutocho is a relatively small district comprised mostly of office buildings.

You can walk around the entire neighborhood in about 15 minutes.

This 15-story building is the tallest in the area.

With direct access to the subway,

the first-floor lobby serves as a local gateway.

Wow. Look at that!

Suspended from the ceiling is a massive LED display

showing real-time stock information.

Its dynamic movement represents the constantly evolving nature of the economy.

There's a really stylish cafe here.

You know, coming down here, I thought it would be

a lot of people rushing around and all wearing business suits.

But it's a bit different than what I thought.

Okay, distinctive looking building.

Okay, there it is, the Stock Exchange building.

The Tokyo Stock Exchange is the largest stock exchange in Japan

with approximately 3,700 listed companies

including major global corporations.

On weekdays, the building is open to the public.

PR representative Sakakura Yuka will show us inside.

This is the Market Center where experts monitor market activity in real time.

The average daily trading volume is over 3 trillion yen.

It's 17 meters in diameter, and enveloped in glass.

The reason it's designed that way

is to symbolize the transparency and fairness of the market.

The ticker up above displays the latest stock quotes.

The more trading going on, the faster the figures revolve.

You can see figures in red and green.

Red is typically used around the world to indicate a drop in price.

But in Japan red is considered an auspicious color.

So here it signifies a rise in price.

Interesting!

Yeah, it's really quiet.

Basically, I could count the number of people in my one hand, right?

No people.

This room was once a trading floor

crowded with brokers shouting and using expressive hand signals to communicate.

Today, computers are used to process transactions

and monitor the market for any misconduct.

It kind of looks like a modern factory, right?

Everything seems to be computer-oriented, right?

Near the Tokyo Stock Exchange is a sacred site

dedicated to the guardian deity of the securities industry.

There's a small shrine here.

And I wonder...

It's a really interesting location.

Kabuto Shrine is nestled between a highway and an office building.

It was established in the late 19th century around the same time

as the creation of Japan's first stock exchange.

Even now, there are many stock traders

who stop by every morning on their way to work to pray for success.

- Hello.
- Hi!

Emoto Yoshio is chair of the local town council.

He comes here daily to pray for neighborhood prosperity.

He says that there's something here

that can tell us more about Kabutocho's roots.

Over here. It says "Kabuto Rock."

The word "kabuto" refers to a samurai helmet.

The name "Kabutocho" is said to come from a legend

that the warlord who ruled this area a thousand years ago

placed his helmet on this rock to pray for success in battle.

Next, Emoto takes us on a neighborhood stroll.

- You were born here?
- Yes.

- You must have seen a lot of things.
- I have indeed.

I've seen ups and downs, both good times and bad.

Our first stop is Nihonbashi River,

which flows along the northern edge of Kabutocho.

Back in the Edo period, this waterway was a vital artery.

(Edo period 1603-1868)

The area left of the river is Kabutocho.

It used to be a neighborhood of mansions.

Here's a map of Kabutocho in the early 19th century.

Samurai residences, shown in white,

made up about half of the neighborhood.

Because the area had waterway access to the bay,

it became home to naval commanders

who were tasked with protecting the city.

When the samurai era came to an end,

their estates were confiscated by the new government

which used the land to build modern financial institutions.

This is the birthplace of Japanese banking.

Wow, very historic!

Japan's first bank was established at this spot in 1873.

Here's a woodblock print depicting the original building.

The design incorporates influences from traditional Japanese castles,

as well as Western style architecture.

Its unique look made it a popular landmark among locals and sightseers alike.

The bank was established by the industrialist Shibusawa Eiichi,

known as the father of Japanese capitalism.

In 1878, Shibusawa and others led the creation of

Japan's first stock exchange in Kabutocho.

This was the predecessor to the Tokyo Stock Exchange.

In the decades that followed,

many private securities companies and banks

began to set up offices in the area.

And thus, Kabutocho became the center stage

for Japan's modern economy and stock market.

At its peak in the 1980s,

more than 100 financial institutions lined the streets,

and it developed a global reputation as the Wall Street of Tokyo.

Right around that time,

Emoto ran a local eatery that he'd taken over from his father.

- That there used to be my place.
- Right there?

This wooden building.

Emoto's place was a local fixture for many years.

But he closed down five years ago.

Take a look at this. Look familiar?

Ah, unagi!

What a cool design.

Emoto's restaurant specialized in unagi.

His rice bowl, featuring eel dipped in a salty sweet sauce before grilling,

was a favorite among many local financial workers.

Japanese eels are considered auspicious

because of their intense instinct to swim and climb upstream.

Back when the economy was strong, my restaurant would fill up.

Workers would treat their subordinates to encourage them to work hard.

But then, in 1999,

Kabutocho reached a turning point.

With more and more securities trading taking place electronically,

the stock exchange closed its trading floor.

That meant fewer people coming to the area.

There were over 2,000 stock traders. But most of them left.

No people, no business.

One after the other, the securities firms moved out

and the district lost its vitality.

Emoto says he wants to introduce Felicia to a fellow local

who also experienced Kabutocho's heyday.

This traditional soba shop opened in 1907.

It too was once a favorite among local financial workers.

Look at those soba noodles!

They came to eat these noodles for the same reason

they came to eat Emoto's unagi, for good luck.

They saw the long thin noodles as representing long-term economic stability.

Long-term stability is better than short-term prosperity.

Yoshida Hiroaki was born and raised in Kabutocho, just like Emoto.

We went to the same school up through junior high.

We lived close by each other.

What was it like back when there were many traders here?

We got a lot of business. Especially delivery orders.

We had enough delivery staff to make a baseball team!

The town was full of activity.

Today... I know fewer people. It's a different crowd.

Back when this area was bustling,

there were a lot of restaurants run by fellow owner-chefs.

Now almost all of them are gone.

That does sadden me.

Although most of the old establishments he knew are gone,

Yoshida says that he feels hopeful about the future.

I see new businesses opening up.

What kind?

Cool, hip places.

Like pastry shops.

- Are they bringing people in?
- Yes, young people.

Maybe that youthful energy will help local businesses thrive.

Over the past several years,

a number of new casual eateries have been opening up in the area,

and the local vibe is starting to change.

It's a lovely tree.

"BANK"?

I wonder what kind of place this is. I'm going to have a look.

Wow, it's bread.

This bakery opened in December 2022.

Their pastries, which use ingredients like fruit and chocolate,

are especially popular.

Look around at the interior design,

and you begin to notice the signs of wear and tear.

This shop is actually housed in a former bank building.

It was created by Oyama Keisuke who trained as a pastry chef in France.

He says he was drawn to the building because of its historic feel.

This used to be a bank, so it has a very sturdy build.

We've retained as much of the structure as possible.

Because the former bank building offered ample floor space,

he decided to turn the basement into its own space.

- This is lovely!
- We've created a quiet space.

This is the flower shop.

Wow!

There's a shop selling lifestyle products,

a bar,

and a dry flower shop.

Oyama says he wanted to create a cozy neighborhood hangout.

- This building used to be a bank.
- Yes.

This room here was the vault.

The vault! How cool!

In the back office, they've even preserved the vault door.

It still opens!

Oh, look at how thick this door is.

The door leads back into the shop.

This former bank vault has been turned into an urban getaway

to escape the hustle and bustle.

It's just one example of how Kabutocho is being reinvented.

Oyama was able to find the former bank building

through a locally based real estate firm.

Section chief, Nakajima Yukari,

will tell us more about their plan to transform the neighborhood.

We wanted to revitalize the area.

So we started planning in 2014, and new shops started opening in 2020.

The company Nakajima works for owns 40% of the real estate in Kabutocho.

One pillar of their redevelopment plan is the utilization of vacant properties

that once housed financial institutions.

She says there's another former bank building nearby

that's been given a new lease on life.

Take a look at this old building right over here.

It's a simple design. I wonder what it was.

This four-story building was built a century ago,

and used as an annex to Japan's first bank.

After undergoing renovations, it reopened in 2020 as a hotel.

Very stylish.

And look at those high ceilings.

But it's so relaxing.

With Tokyo Station just a short cab ride away,

this hotel has become popular among international tourists.

Its occupancy rate is over 90%.

Wow, this floor, amazing.

You normally can't find a floor like this in a hotel,

but look at that. They've kept the old floor and it's amazing.

That's what gives this place its character and unique atmosphere.

Instead of installing a carpet,

they stripped the floor down to the 100-year-old concrete.

The hallways are also full of creative touches.

It creates an interesting contrast.

Here, they've used a traditional repair technique

to fill a crack in the tile floor with decorative gold.

In this way, they've embraced the markings of time as features.

And that's not all.

The hotel facade can tell us more about what the neighborhood

was like in the past.

What's the impression you get when you look at this facade?

It's very neutral.

It's nice and simple... but maybe a little plain.

So, this is actually the back of the building.

This is the back?

The current entrance sits on what was originally the back side of the building.

It's what accounts for the low-key design and lack of detailing.

Back then there were waterways running throughout this area.

Buildings were built facing the water.

Here's what Kabutocho looked like in the late 19th century.

Buildings were built along waterways.

They featured elaborate facades facing out across the water.

Today the waterway that was next to this building

has been replaced by an elevated expressway and parking lots.

The original facade is largely hidden from view.

But from a distance, you can catch a glimpse of the past.

It just kind of puts me back in time a little bit.

And you can see the front of the building here,

and you can imagine what it must have been like during those times.

Nakajima says that their redevelopment plan

also includes the construction of new buildings.

This hybrid timber high-rise was completed last year.

Perhaps the most striking feature of this building

are the bare chestnut logs that stretch across the facade.

This 10-story office building was made

using a combination of steel reinforced concrete and wood.

If you look up...

you can see a concrete megastructure with a timber structure inside.

By using timber,

they were able to reduce CO2 emissions from the construction process.

There's a growing interest in this type of hybrid structure in urban areas.

Let's head inside.

Ooh, look. The wood design continues into the interior.

It's beautiful, spacious and airy.

This is a brewpub run by a sake maker.

They specialize in an ancient beverage.

It's milky white!

"Doburoku."

It's a simple alcoholic drink brewed from rice.

But unlike conventional sake,

the resulting fermented mash is not filtered,

which means you can really taste the sweetness and umami of rice.

Yamamoto Norimasa is the fourth-generation president

of the Wakayama-based sake brewery behind this establishment.

As bars that specialize in doburoku are rare,

his efforts are now garnering attention.

Kabutocho was a center of innovation.

Today it's a place where you can combine innovation with history.

I see doburoku as an old, yet new beverage.

So it's a perfect fit.

Meanwhile, next to the Tokyo Stock Exchange,

efforts are underway to revitalize Kabutocho as a new financial hub.

Ara Daiki works on developing office buildings

for the same real estate firm as Nakajima.

They've created a new office facility

in an effort to attract a new generation of financial companies to Kabutocho.

This floor is meant to support and incubate fintech startups.

It's a shared office space.

In addition to renting out office space,

they provide various services including business setup support.

They also host seminars and networking events.

Most of the tenants are businesses run and staffed by young people.

This man heads a fintech startup.

People say, "Oh, Kabutocho!" when I hand out my business card.

The name has brand value.

Especially among the older generation.

They know it as a financial hub.

We're a young company.

So being associated with Kabutocho is definitely a plus.

The real estate firm has been opening shared offices since 2017.

Thanks to the convenient location and lower rents

compared to other nearby business districts,

they've served 80 companies to date.

They've been developing these spaces to coincide

with the Tokyo Metropolitan Government's vision

for making Tokyo a "Global Financial City."

The goal is to establish Tokyo as a leading international financial hub

centered on three districts.

Otemachi, where many financial institutions are headquartered,

Nihonbashi, where the Bank of Japan is located, and Kabutocho.

With more and more financial companies showing interest in Kabutocho,

Ara says they're in the process of creating another shared office space.

By March 2025, we aim to host about 100 firms here in Kabutocho.

We're building the infrastructure to entice and support them.

That'll attract businesses of all kinds!

If we can bring in 100 companies,

it'll change the face of the neighborhood.

That's what we're striving for.

The Kabutocho financial district helped lay the foundations for a modern Japan.

Its innovative spirit lives on in the present day,

inspiring a new generation to write the next chapter of its history.

We want to foster an enterprising atmosphere in this neighborhood.

That'll involve creating offices, workplaces, living spaces...

and building a community.

A multi-pronged approach.

We want to create a community that people believe in.

A place for them to grow their businesses.

Kabutocho has always been filled with the spirit of revitalization.

And I can feel that energy has been passed down to present day

as the city inherits its past,

while it rebuilds and renovates for the future.

And it's that which gives this town its unique appeal

and a fertile environment as we look to tomorrow.