MarketView | JAPAN RETAIL | Q1 2023
MARKETVIEW | JAPAN RETAIL | Q1 2023
High street rents return to pre-pandemic levels in Ginza, begin to rise in the Shinsaibashi-suji shopping district + 6.5% y-o-y Jan. to Mar. Retail Sales*
+ 14.2% y-o-y Jan. to Mar. Department store sales**
+ 2.6pts m-o-m
Consumer confidence index*** Mar. 2023
－
+ 2.8% q-o-q
1.4pts q-o-q
Ginza High Street Vacancy Rate **** Q1
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.
Ginza High Street Rent **** Q1
Source: *Ministry of Economy, Trade and Industry **Japan Department Stores Association ***Japanese Cabinet Office ****CBRE
Figure 1: High street vacancy (upper graph) & prime rent/high street rents (lower graph) in Q1 2023
━ Tokyo: The high street vacancy rate for Q1 2023 fell by 1.4 points q-o-q to 6.2%. The main reason for this fall was due to opening of a pop-up store in a relatively large premise. Ginza high street rents rose by 2.8% q-o-q to JPY 257,600 per tsubo per month, marking a return to the pre-pandemic levels of Q4 2019. As in the previous quarter, the demand from luxury brands drove up the rents.
15%
━ Osaka: The high street vacancy rate for Q1 2023 fell by 3.0 points q-o-q to 4.6%. This was due to takeup of several vacancies in the Shinsaibashi-suji shopping district, including a space of over 200 tsubo. Shinsaibashi high street rents were up 7.9% q-o-q to JPY 164,000 per tsubo per month, with accelerated demand from drugstores and duty-free stores for properties in the Shinsaibashi-suji shopping district on recovering inbound tourist demand.
3%
━ Nagoya: The high street vacancy rate for Q1 2023 was flat q-o-q at 0.0%. As in the previous quarter, there were no new vacancies. High street rents in the Sakae district of Nagoya remained unchanged from the previous quarter at JPY 71,000 per tsubo per month. This quarter, a jewelry brand was confirmed as the new tenant for a property on the Otsu-dori high street which had struggled for some time to attract demand. The contracted rent was seen to be at par with the current market level.
12%
9%
神戸
栄
天神
Tenjin
京都
Sakae
心斎橋
Kobe
渋谷
Kyoto
新宿
Shinsaibashi
JPY/tsubo
500,000
表参道・原宿
Shibuya
Ginza
銀座
Shinjuku
0%
Omotesando Harajuku
6%
400,000 300,000 200,000 100,000 0
Prime Rent
High Street Rent
Source: CBRE, Q1 2023.
1
CBRE RESEARCH
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