Private Sector Breathes New Life into Old Schools; Utilization of Closed Buildings Creates Boon for Local Govts

By Yoshiki Okamoto / Yomiuri Shimbun Staff Writer

20:00 JST, April 5, 2026

HIROSHIMA — With population decline forcing elementary and junior high schools to close their doors nationwide, an initiative is gaining steam in the private sector to make use of unused school buildings.

Recent figures show that the number of closed schools being utilized by the private sector has passed the 1,200 mark.

The initiative is good for businesses, as it reduces initial construction costs and allows them to take advantage of the buildings’ unique characteristics. It also provides a financial boon to local governments, which are no longer burdened by maintenance and other costs.

The Education, Culture, Sports, Science and Technology Ministry has been working to connect local governments with private sector businesses interested in utilizing closed schools.

The sound of drone propellers echoed through the gymnasium of former Tadanoumi-Higashi Elementary School in Takehara, Hiroshima Prefecture, which shuttered its doors in 2015.

Nowadays, the building is used as a drone school. Students spend two days learning the practical skills and receiving the lectures required to obtain a national certificate for unmanned aircraft operators.

Launched in August last year by Mugen no Sora, a company based in Fukui Prefecture, the program is offered about five times a month. The company chose closed schools because of their spacious grounds and location far from the center of residential areas, minimizing the risk of accidents.

Mugen no Sora currently operates the drone training program at about 20 closed schools in Hyogo, Fukuoka and other prefectures.

“We want to continue expanding our business, mainly focusing on regional areas,” said President Akihiro Hisamori, 36.

Takehara is home to five closed schools. Demolishing each school would cost more than ¥100 million, according to the municipal government. As long as they remain standing, the city has to spend ¥6-¥7 million each year on maintenance, including fire safety inspections and groundskeeping. The city therefore welcomes the private sector to utilize the properties.

“If a company uses the schools, it takes the burden off us to regularly clean them and do other tasks,” said a city official.

The drone school also brings economic benefits to the local community because residents are hired as staff and instructors, and students spend money at restaurants and other local businesses.

According to the education ministry, 8,850 public schools were closed from fiscal 2004 to 2023.

As of May 2024, 7,612 of those were still standing, with 5,661 being utilized in some way.

Many are used for public purposes, such as after-school programs and as local government offices. However, in recent years, private companies have increasingly been utilizing them for business purposes. As of May 2024, 1,207 closed schools were being used by the public sector, up about 200 from three years earlier.

The businesses vary. For instance, a closed elementary school in Miyoshi, Tokushima Prefecture, has been leased free of charge to local design firm Haretoke Design, Inc. for about 10 years. The firm renovated the building and has been using it as a hotel and cafe.

“Guests come here to enjoy the unique experience of staying the night inside a school building,” said an official from the company.

Another example is a closed elementary school in Owani, Aomori Prefecture. There, a local company that offers farming experiences manufactures dry-cured ham made from locally raised pork. The company said the wooden building’s good ventilation is suitable for pork processing.

Matchmaking events

The education ministry has held annual matching events to bring together local governments with businesses and other entities.

The ministry also lists unused school buildings on its website.

If closed schools are utilized by businesses, they “bring significant financial benefits to local governments, whih get property tax revenue from the businesses and can reduce maintenance costs,” said a ministry official. “We will continue our efforts to help utilize more of these buildings.”