Japan Retail MarketView Q2 2023

Tokyo: Ginza high street vacancy rate for Q2 2023 rose by 0.5 % points (pp) q-o-q to 6.7%, mainly due to a vacancy of a relatively large unit, although it has been getting inquiries from prospective tenants. The high street rents remained unchanged, standing at JPY 257,600 per tsubo per month. Demand is seen from luxury brands as well as fashion brands. However, there were no leases that implied further rise in market rents this quarter.

Osaka: Shinsaibashi high street vacancy rate fell by 1.2 pp q-o-q to 3.4% as more take-up was seen in the Shinsaibashi-suji shopping district. The High street rents surged by 17.7% q-o-q to JPY 193,000 per tsubo per month, as demand was driven by luxury brand on Mido-suji, and by retailers targeting the inbound demand in the Shinsaibashi-suji shopping district.

Nagoya: Sakae high street vacancy rate was flat q-o-q at 0.0%. As in the previous quarter, there were no additional vacancies. The high street rents remained unchanged for the second straight quarter at JPY 71,000 per tsubo per month. During the quarter, one relatively large unit in the high street area of Otsu-dori confirmed an overseas brand as its new tenant at current market rates.