Japan Retail MarketView Q3 2022

Tokyo: The high street vacancy rate in Tokyo’s Ginza area rose by 1.3 points q-o-q to 7.7% in Q3 2022, mainly due to a vacancy of a relatively large unit following the closure of the pop-up store. Ginza high street rents remained unchanged for the fourth straight quarter at JPY 241,500 per tsubo per month. While several luxury goods brands were seen to be waiting for an opportunity to open new stores in high street areas, available properties in prime high street locations are becoming fewer in number.

Osaka: The high street vacancy rate in Osaka’s Shinsaibashi area fell by 2.5 points q-o-q to 14.0% this quarter on the back of tenants being confirmed for multiple properties in the Shinsaibashi-suji shopping district. High street rents in Shinsaibashi rose by 7.0% from the previous quarter to JPY 152,000 per tsubo. During the quarter, a newly completed property on Mido-suji drew interest from multiple luxury brands, despite its above-market asking rent.

Nagoya: The high street vacancy rate in Nagoya’s Sakae area rose by 0.4 points q-o-q to 0.4% in Q3 2022. While one unit became available following the termination of a pop-up store’s lease, interest in the property was registered from multiple retailers. Sakae high street rents remained unchanged from the previous quarter at JPY 70,000 per tsubo. Although a comparatively large property attracted some interest from sporting goods brands and other retailers, prospective tenants remained unwilling to pay above-market rates.