MarketView | JAPAN RETAIL | Q4 2022
MARKETVIEW | JAPAN RETAIL | Q4 2022
Ginza High Street rents rise for the first time since pandemic Driven by luxury demand, rents increase by 3.8% q-o-q －
m-o-m
Consumer confidence index*** Dec. 2022
Ginza High Street Vacancy Rate **** Q4
Starting previous quarter (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: The high street vacancy rate for Q4 2022 declined 0.4 points q-o-q to 0.0%, as a tenant was confirmed for unit which was vacant after the departure of a pop-up store. High street rents in the Sakae district of Nagoya rose 1.4% q-o-q to JPY 71,000 per tsubo per month, as a result of strong demand from high-end wristwatch brand and other retailers and very little in the way of available units.
Figure 1: High street vacancy (upper graph) & prime rent/high street rents (lower graph) in Q4 2022
15% 12% 9% 6% 3%
JPY/tsubo
500,000
表参道・原宿
新宿
渋谷
心斎橋
京都
神戸
栄
天神
Tenjin
銀座
Sakae
0%
Kobe
━ Osaka: The high street vacancy rate for Q4 2022 declined 6.4 points q-o-q to 7.6%, mainly due to several retailers confirming leases for pop-up stores in a number of units sized over 100 tsubo. Shinsaibashi high street rents remained unchanged from the previous quarter at JPY 152,000 per tsubo per month. During the quarter, demand was seen from multiple luxury brands seeking store space on the Mido-suji high street. With available properties extremely limited in number, some tenants have already been confirmed for a new facility under development and not due for completion for a few more years.
Ginza High Street Rent **** Q4
Source: *Ministry of Economy, Trade and Industry **Japan Department Stores Association ***Japanese Cabinet Office ****CBRE
Ginza
━ Tokyo: The high street vacancy rate for Q4 2022 fell by 0.1 points q-o-q to 7.6% as an available property that had been attracting interest since the previous quarter secured a tenant. Ginza high street rents rose by 3.8% q-o-q to JPY 250,700 per tsubo per month. This rise was primarily a result of multiple luxury brands expressing a willingness to pay above-market rates for the opportunity to open stores in prime high street locations.
+ 3.8% q-o-q
0.1pts q-o-q
Kyoto
Department store sales**
+ 1.7pts
Shinsaibashi
y-o-y Oct. to Dec.
Shibuya
+ 6.0%
Shinjuku
Retail Sales*
y-o-y Oct. to Dec.
Omotesando Harajuku
+ 3.6%
400,000 300,000 200,000 100,000 0
Prime Rent
High Street Rent
Source: CBRE, Q4 2022
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