During fiscal 2000, conditions for the marketing of premium office buildings and of premium condominiums in central urban locations were positive. The relentless decline in land prices persisted, however, and predicting trends in the operating environment for domestic real estate development operations remained difficult. On the positive side, plans were laid for the establishment of Japanese-style real estate investment trusts, and real estate securitization activities increased.

Amid these conditions, Kajima proceeded dynamically with real estate development centered on redevelopment projects that involved large-scale office building and condominium projects. In particular, the Company quickly sold more than 260 luxury condominium units in a redevelopment project in Tokyo's Daikanyama district scheduled to be completed in August 2000. The Company is scheduled to market similar large-scale projects during fiscal 2001.

Kajima's residential products have been highly evaluated by specialists. During fiscal 2000, Kajima's Garden Avenue Shikisaiwaicho development received the Saitama Prefecture Landscape Award and the Company's Fuore Stage Takahata Kashimadai received the Urban Design Award within the Good Design Awards of the Japan Industrial Design Promotion Organization.

With regard to the more than 50 office buildings throughout Japan that Kajima owns and/or manages, the Company has maintained overall occupancy rates exceeding 92%, which is a relatively high level in light of current market conditions. 

In 1998, Kajima established its Real Estate Investment Advisor Group and began providing such consulting services as those involving due diligence and brokerage. During fiscal 2000, the Company performed approximately \200 million of due diligence work for 81 buildings, and the quality of the work was highly evaluated. Particularly adept at appraising the structural aspects of buildings, the Company intends to emphasize the expansion of its consulting business as a means of making fuller use of the development know-how it has accumulated in Japan and overseas.