Viewpoint | Creating Resilience, Future Cities
Japan ViewPoint - Lengthening leasing periods
May 25, 2023
Looking for a PDF of this content?
- Since the onset of the COVID-19 pandemic, the length of time required for some units to secure new tenants has risen compared to pre-pandemic levels. As a result of an increase in availability and uncertainty concerning the outlook of the economy, retailers have become more selective with respect to lease conditions.
- CBRE has found that leasing periods have increased since the advent of the pandemic, irrespective of floor space and total rent levels. However, some units find tenants just as easily as prior to the pandemic, which indicates significant variance depending on the premises.
- This report also considered three possible strategies for the effective use of vacant street-level units: pop-up stores and digital signage, which have already been used in several locations within Japan, and service/experience focused units, now increasingly widely found in such cities as New York and London.