Japanese automaker Honda Motor Company has announced that it plans to relocate its global headquarters to a new redevelopment area near Tokyo Station in the Yaesu district by 2029, abandoning its earlier plan to rebuild and remain at its current headquarters.

Honda’s main global headquarters has been based in the Aoyama Building, in Tokyo’s Minato ward, since the building was built some forty years ago. The company recently relocated some head office operations to Toranomon, also in Minato, in May on a temporary basis due to a lack of office space.

Ownership of the Aoyama Building will be transferred to Mitsui Fudosan Residential Company, in exchange for a portion of the new tower to be built by the same developer in the Yaesu district. Honda said it will have more floor space in the new building, allowing it to consolidate its head office operations once again, improving communication and working conditions for its staff.

Honda stated that it has been “carefully considering various approaches to establishing a global head office function, that will serve as a hub for transformation and communication that fosters innovation,” as it “continues striving to be a company society wants to exist in the future.”

Honda revealed that it has a unique in-house communication culture, called “Waigaya”, which helps promote innovation. It allows staff to “transcend their respective roles and positions, and engage in vigorous exchanges of their opinions that yield higher results.” The relocation of some head office functions to Toranomon, which has a “one-floor” office layout, has already helped improve communication between staff.