MarketView | JAPAN RETAIL | Q2 2023
MARKETVIEW | JAPAN RETAIL | Q2 2023
High street rents rise in Shinsaibashi, Kyoto and Tenjin on strong inbound recovery Ginza High Street Vacancy Rate **** Q2
Starting Q3 2022, vacancy rate surveys will no longer be restricted to ground floor properties for which tenant demand is highest, but will instead cover all units for lease, including those on the ground floor.
━ Nagoya: Sakae high street vacancy rate was flat q-o-q at 0.0%. As in the previous quarter, there were no additional vacancies. The high street rents remained unchanged for the second straight quarter at JPY 71,000 per tsubo per month. During the quarter, one relatively large unit in the high street area of Otsu-dori confirmed an overseas brand as its new tenant at current market rates.
Ginza High Street Rent **** Q2
Figure 1: High street vacancy (upper graph) & prime rent/high street rents (lower graph) in Q2 2023
15% 12%
9% 6% 3%
JPY/tsubo
500,000
新宿
渋谷
心斎橋
京都
神戸
栄
天神
Tenjin
表参道・原宿
Sakae
銀座
Kobe
0%
Kyoto
━ Osaka: Shinsaibashi high street vacancy rate fell by 1.2 pp q-o-q to 3.4% as more take-up was seen in the Shinsaibashi-suji shopping district. The High street rents surged by 17.7% q-o-q to JPY 193,000 per tsubo per month, as demand was driven by luxury brand on Mido-suji, and by retailers targeting the inbound demand in the Shinsaibashi-suji shopping district.
0.0% q-o-q
Source: *Ministry of Economy, Trade and Industry **Japan Department Stores Association ***Japanese Cabinet Office ****CBRE
Ginza
━ Tokyo: Ginza high street vacancy rate for Q2 2023 rose by 0.5 % points (pp) q-o-q to 6.7%, mainly due to a vacancy of a relatively large unit, although it has been getting inquiries from prospective tenants. The high street rents remained unchanged, standing at JPY 257,600 per tsubo per month. Demand is seen from luxury brands as well as fashion brands. However, there were no leases that implied further rise in market rents this quarter.
±
Shinsaibashi
Consumer confidence index*** Jun. 2023
+0.5pts q-o-q
Shibuya
Department store sales**
+ 0.2pts m-o-m
Shinjuku
Retail Sales*
+ 6.8% y-o-y Apr. to Jun.
Omotesando Harajuku
+ 5.6% y-o-y Apr. to Jun.
400,000 300,000 200,000 100,000 0
Prime Rent
High Street Rent
Source: CBRE, Q2 2023.
1
CBRE RESEARCH
© 2023 CBRE, INC.