logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
Japan
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
English
  • 日本語
  • English
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Corporate Coverage
      • Global Workplace Solutions
      • Property Management
      • Valuation Advisory & Consulting Services
    • Industries & Specialities
      • Office
      • Industrial & Logistics
      • Retail
      • Data Center Solutions
      • Hotels
      • Flexible Workspace
    • Services for Investors
      • Asset Management
      • Capital Advisors
      • Consulting
      • Leasing & Advisory
      • Project Management
      • Property Management
      • Property Sales
      • Valuation & Advisory
      • Renewable Energy Advisory & Consulting
    • Services for Occupiers
      • Facilities Management
      • Leasing & Advisory
      • Occupier Consulting
      • Project Management
      • Transaction Management & Portfolio Services
      • Valuation & Advisory
      • Workplace Strategy
      • Renewable Energy Advisory & Consulting
  • Properties
  • Research & Reports
    • About Research
      Japan Research Archive
      Asia Pacific Research
      Global Research & Reports
      Global Research Support
  • People & Offices
  • About CBRE
    • Corporate Information
      Corporate Profile
      A Message from the President & CEO
      Media Center
      Awards & Recognition
      Corporate Responsibility
      ESG Initiatives
      Investor Relations
      Careers
      File Transfer Services

Previous

Press Release
CBRE Japan releases preliminary October 2014 data on office vacancy rates and average rents in three major cities

Next

Press Release
CBRE’s Japan CEO Ben Duncan Promoted to President, North Asia
  • Home
  • About CBRE
  • Media Center
  • Little vacant retail space to meet buoyant demand; rents continue rising CBRE publishes report on Q3 retail market trends

Little vacant retail space to meet buoyant demand; rents continue rising CBRE publishes report on Q3 retail market trends

November 5, 2014
  • Email
  • Share
  • Tweet
  • Share

CBRE released today its Q3 2014 report on retail property market trends in Tokyo and other major Japanese cities. 

Hot Topics

  • Consumption indicators are mixed, but recovery continues overall
  • Space in prime locations remains scarce
  • Rents are likely to continue to rise in Tokyo and all major markets

Tokyo (Ginza, Omotesando, Harajuku, Shibuya)

Core retail markets in Tokyo continued to witness robust retailer demand in Q3 2014. The period saw strong demand for store openings from both Japanese and overseas-based tenants, including foreign luxury brands opening their first Japanese stores and Japanese companies launching new store concepts. If the supply/demand balance tightens further, leases signed at higher rents are likely to spur additional rental increases. 

In Ginza, a number of tenants expressed willingness to open stores despite rents above recent market levels, even on stores slightly off prime streets, implying further upside in market rents in the area. In Omotesando, space has been gradually filled on Kotto-dori, which had previously struggled to find tenants, but was almost fully let by the end of this quarter. In Shinjuku, it was reported that a foreign luxury brand had agreed to let the now closed Marui One building. In Shibuya, one property that had been empty for around a year as its owner refused to lower the asking rent was recently let.

"Foreign retailers have become increasingly keen to open stores," said Shina Fukui, director of CBRE's Tokyo Retail Services team. “The market is buoyant, with demand coming from a variety of tenants, from luxury brands to fast fashion offshoots and restaurants. However, due to the decreasing availability of well-located space, it is likely to become even harder for retailers to open new stores. As multiple tenants are keen to open stores in a single vacant unit, overall market rents are likely to rise further.”

Osaka (Shinsaibashi, Umeda)

In Osaka’s core retail markets there continues to be little space available to meet strong demand. The market is booming thanks to the increasing number of foreign visitors to the city. In Shinsaibashi, the period saw strong competition among multiple tenants to secure retail units in a well-located new development. In Umeda, when space does become available in large properties, there is competition from multiple tenants and leases are signed very quickly.

"There is strong demand from foreign brands looking to open their first store in Osaka but very few vacant spaces in good locations," said Tsuyoshi Hashikawa, senior director of CBRE's Kansai Retail Services team. "Because luxury brands will only consider opening stores in a select number of areas, latent demand is currently growing, but going unfulfilled. There are also a lot of tenants with outlets in large retail complexes who want to open stand-alone stores. Unless there is significant growth in the stock of standalone stores, through rebuilding for example, the current situation is likely to persist.”

Nagoya (Sakae)

Demand from retailers for standalone stores remains strong in the Sakae area, which forms the core of the Nagoya retail market. With almost no space available on Otsu-dori and other prime streets, leasing has progressed steadily in properties slightly off the prime streets. Rents have gradually risen for units on the less expensive streets and buildings, thanks to the strength of demand, and the market as a whole has bottomed out.

"There is no space available in areas that foreign luxury brands will consider, and many of these tenants have been looking for locations for new stores for a long time," said Noriyuki Kawamoto, director of CBRE's Nagoya Retail Services team. "The Nagoya Zero Gate development that has opened opposite the PARCO West Building has attracted a lot of fast fashion tenants. Several fast fashion retailers have opened stores around this area in recent years. Not only have they been keen to open stores, but they now seem to be clustering in this location. Market rents for less expensive streets and buildings are likely to continue rising.”

Download a PDF version of the press release here​.

​​​​​​​​​​​​​​​​​

​​

About CBRE Gro​up, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.​

Official Twitter account for Japan: @cbrejapan

Disclaimer

Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.

Media Contacts

Marketing & Communications
+81 3 5288 9283
  • About Us
  • Corporate Information
  • People & Offices
  • Media Centre
  • Corporate Responsibility
  • Investor Relations
  • Careers
  • Contact Us
  • Terms of Use
  • Japan Privacy Policy
  • Global Web Privacy and Cookie Notice
  • Transactions Involving Financial Instruments
  • Basic Company Policy on Dealing with Anti-Social Elements
  • Global Supplier Code of Conduct
  • LinkedIn
  • Twitter
  • Facebook
  • YouTube
  • Instagram