Japan Retail MarketView Q4 2025

Average rents set record highs in three areas including Ginza
Impact of fewer Chinese visitors to Japan should remain limited

• Average rents rose q-o-q in three of the 10 surveyed areas (Ginza, Omotesando/Harajuku, and Shibuya) in Q4 2025, reaching the highest level since CBRE’s surveys began. Average rents in the remaining seven areas remained unchanged, with Shinsaibashi, Kyoto, Kobe, and Tenjin maintaining their all-time highs.

• Three areas (Ginza, Shibuya and Sakae) reported no vacancies in prime areas this quarter. Shinsaibashi saw its vacancy rate rise from 0.0% in the previous quarter to 0.8% in Q4 2025, increasing for the first time in six quarters.

• The Chinese government's travel advisory to its citizens to refrain from visiting Japan, issued in November 2025, had almost no impact on Japan’s retail leasing market this quarter. Despite this news, many retailers are proceeding with store opening plans in accordance with medium- to long-term strategies. Sales at existing stores continue to be supported by purchases by domestic customers and foreign visitors from other countries.

• The lack of available units and persistent competition among retailers suggest that upward pressure on rents across the country will continue to be seen in the coming quarters. For retailers with medium- to long-term objectives, the impact of fewer Chinese visitors on store openings should be limited. Demand for storefront space is therefore likely to remain robust.