Tokyo
Fundamentals
• Demand forprimeretailspaceremains robust,driven bydomestic andinternational consumption.
• HulicGinzaBuildingandSeiwaGinzaBuildingcompletes along GinzaChuo-dori.
• Rent growthcontinues, driven byground-floor rentincreases.
Domesticconsumptionisrecoveringonbettersentimentandincome, whilerecord tourismboostsinbound spending, fuellingretailsales growth. Thedrop inTokyo luxurysalesisonly againstanunusualhigh causedbyapre-price-hike rushdemand. Notablenewopenings inQ3 2025included TiffanyandHarryWinston onGinzaChuo-dori, Cartier alongside Harumi-dori, andtheHarryPotterShop, whichopened alongOmotesando.
NewsupplyinQ3included theHulicGinzaBuilding(GFA13,000sqm) onGinzaChuo-dori withHarryWinston andVanCleef&Arpelsas ground floortenants. TheSeiwa GinzaBuilding(GFAof5,000sqm) alsocompleted alongChuo-doriwithLoewescheduled astheground floortenant toopen inQ42025.Construction beganon theJingumae 3-chome Project(tentativename) inQ32025.Thisfive-storey, aboveground buildingwithaGFAof1,300sqmisscheduled forcompletion in2026alongHarajuku-dori.
Rent inQ32025reachedJPY102,164pertsubo,permonth, increasing 2.4%q-o-q and4.8%y-o-y. Againstthebackdrop oftightsupplyand demand, bothground-floor andupper-floor rentsincreased, marking the14thconsecutive quarterofpositiverentgrowth. Capitalvalues increased 1.1%q-o-q and4.0%y-o-y, reflecting rentincreases.
Notabletransactionsthisquarterincluded theacquisitionofJMF BuildingJingumae 01byadomestic operating company. Theprice wasJPY5.5billionwithanNOIyieldof2.4%.
Outlook
Intherentalmarket,againstthebackdrop oflimited supply,groundfloorrentincreasesareexpected toaccelerate again,andupper-floor rentsarealsoexpected tocontinue rising,soaveragerentsare predicted tomaintainanupwardtrend. Intheinvestment market,as capratesareexpected toremainflat,pricesareanticipated torise gradually,reflecting rentincreases.
Note:FinancialindicatorsarefortheprimeretailmarketsofGinzaandOmotesando DataisonanNLAbasis.RetailsalesgrowthfiguresareforTokyoPrefecture.
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