MarketView | JAPAN RETAIL | Q1 2024
MARKETVIEW | JAPAN RETAIL | Q1 2024
Average rents rise in seven of 10 areas, exceeding pre-pandemic levels in Kyoto －1.8pts Q-o-Q Ginza Vacancy Rate
±0.0% Q-o-Q Ginza Average Rent
－1.3pts Q-o-Q Shinsaibashi Vacancy Rate
＋8.0% Q-o-Q
±0.0pts Q-o-Q
Shinsaibashi Average Rent
Sakae Vacancy Rate
±0.0% Q-o-Q Sakae Average Rent
* As of Q1 2024, the term "High Street rent" has been changed to “Average rent".
– The supply-demand balance remains tight nationwide, with three areas now operating with vacancy rates below 1%. While a lack of availability is likely to slow the pace of new store openings in the coming quarters, strong leasing demand should ensure rents trend upward.
神戸
栄
天神
Tenjin
京都
Sakae
心斎橋
Kobe
渋谷
Shinsaibashi
新宿
Shibuya
JPY/tsubo
– Vacancies were filled by outdoor and sporting goods brands, fashion brands, and luxury goods brands. Appetite was particularly robust from the outdoor/sporting goods sector, with retailers looking for relatively large units in high street areas throughout the country.
表参道・原宿
Shinjuku
銀座
Omotesando Harajuku
– The steepest drop in vacancy rate from the previous quarter was recorded in Shibuya, which registered a fall of -3.4 pp. as retailers from a wide range of sectors, including sporting goods and jewelry, opened new stores. The most significant rise in average rents was seen in Kyoto, which logged gains of +14.0%, as retailer appetite was stimulated by an increase in foreign tourists.
6% 5% 4% 3% 2% 1% 0%
Ginza
– In Q1 2024, the vacancy rate fell q-o-q in six of the nine surveyed areas, while average rents rose in seven of 10. Average rents of Kyoto exceeded pre-pandemic levels for the first time, bringing the number of areas with rents above those prior to the pandemic to four (Ginza, Shinsaibashi, Kyoto, Kobe).
Kyoto
Figure 1: Vacancy rate (upper graph) & Average rent (lower graph) in Q1 2024
300,000 250,000 200,000 150,000 100,000 50,000
Q4 2019
Q1 2024
Source: CBRE, Q1 2024
1
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