2019 saw lackluster move in the economy, with a drop in export and weak consumer sentiment.  Nonetheless, real estate leasing market in Japan continued to remain tight across all major sectors, driven by workplace reform, as well as needs to respond to other structural changes.  With expectation for a pick-up in the global economy particularly towards the latter half of the year, this report looks into how the real estate market may further evolve. 


Rents are expected to rise in all major cities except for Tokyo, reflecting the tight supply-demand balance.
Forecast: Tokyo Grade A rents to fall by 0.5% over the next two years, with moderate decline in 2020, followed by some pick-up in 2021.
Retail (Ginza high street*)  
Demand to open new stores on the high street remain strong. Industries that have successfully captured inbound demand
Forecast: Rent for Ginza high street to rise by 1.4% over the next two years.
‚Äč*Ginza high street: CBRE has designated this area (street), within Ginza, as a particularly high-end, commercial zone.
Over the next two years, the supply-demand balance will remain tight in all three major metropolitan areas.
Forecast: Rent for Tokyo Large Multi-Tenant (LMT) logistics facilities to rise by 2.4% over the next two years.
Investor sentiment remains high and investment into Japan is predicted to increase by 2% compared to 2019.