Japan Brief: High street retail recovery prompts shift in new store opening strategies

Following the relaxation of anti-pandemic measures, 2023 saw the return of foot traffic to city-center high streets in Japan and a consequent recovery in street-level store sales figures. Demand from retailers for storefront space has subsequently risen, leading to falling high street vacancy rates and rising rents nationwide. Since the beginning of 2024, available properties have become so scarce that retailers are becoming seriously concerned by the cost burden of surging rent levels. CBRE expects more retailers will likely consider not only leasing but the option of acquisition to ensure they do not miss out on the few opportunities available to open new stores in high street areas amid such a tight supply-demand balance.