Japan Retail MarketView Q4 2022

Tokyo: The high street vacancy rate for Q4 2022 fell by 0.1 points q-o-q to 7.6% as an available property that had been attracting interest since the previous quarter secured a tenant. Ginza high street rents rose by 3.8% q-o-q to JPY 250,700 per tsubo per month. This rise was primarily a result of multiple luxury brands expressing a willingness to pay above-market rates for the opportunity to open stores in prime high street locations.

Osaka: The high street vacancy rate for Q4 2022 declined 6.4 points q-o-q to 7.6%, mainly due to several retailers confirming leases for pop-up stores in a number of units sized over 100 tsubo. Shinsaibashi high street rents remained unchanged from the previous quarter at JPY 152,000 per tsubo per month. During the quarter, demand was seen from multiple luxury brands seeking store space on the Mido-suji high street. With available properties extremely limited in number, some tenants have already been confirmed for a new facility under development and not due for completion for a few more years.

Nagoya: The high street vacancy rate for Q4 2022 declined 0.4 points q-o-q to 0.0%, as a tenant was confirmed for unit which was vacant after the departure of a pop-up store. High street rents in the Sakae district of Nagoya rose 1.4% q-o-q to JPY 71,000 per tsubo per month, as a result of strong demand from high-end wristwatch brand and other retailers and very little in the way of available units.