Tokyo：Prime units in the Ginza area continues to attract luxury brands who are interested in opening new stores. As a result, Tokyo prime rents remained unchanged in Q4 2020 for the 21st consecutive quarter (*1) at JPY 400,000 (per month per tsubo). Meanwhile, Ginza high street vacancy stood rose to 3.3% in Q4 2020, up 0.7 points q-o-q, as multiple tenants chose to relinquish their leases as a result of poor performance triggered by the pandemic. However, Ginza high street rents remained unchanged from the previous quarter at JPY 247,000 per month per tsubo, reflecting demand from retailers who do not yet have a street-level store presence in the area.
Osaka：Osaka’s prime rents was unchanged at JPY 250,000 (per month per tsubo). Several high-end wristwatch brands, whose sales are thriving as a result of rising stock prices, and other luxury brands without a street-level store presence in the Shinsaibashi area, have expressed interest in some properties, as they look to establish a retail foothold in the area in the near future. Meanwhile, in the area extending from the Shinsaibashi-suji shopping district to Ebisubashi, the loss of inbound tourist demand and the decrease of Japanese visitors have rendered the cost of rent insurmountable for number of retailers, leading many of them to consider closing their stores, if they have not already done so.
Nagoya：Nagoya prime rents also remained unchanged q-o-q at JPY 100,000 (per month per tsubo). A high-end wristwatch brand expressed interest in establishing a storefront presence in a relatively small high street property, at a rent comparable to that paid by the unit’s previous tenant. Also, a relatively large unit in a secondary area secured an overseas brand as a new tenant. The owner had previously been aiming to lease its multiple-storey premise to a single tenant, but the decision to lease the ground floor separately succeeded in generating interest from multiple retailers and eventually led to securing an occupier.