Tokyo retail rents rise as vacancy remains near zero in prime corridors

Ginza and Omotesando lead Tokyo retail performance amidst scarce availability.

Retail leasing demand across Tokyo’s prime shopping corridors remained robust in 2H 2025 and early 2026, supported by strong inbound tourism, steady domestic consumption and wage growth, according to Savills.

The consultancy said vacancies across prime retail streets remain close to zero, with intense competition for well-located units continuing to push prime rents higher. Many higher-priced units have been absorbed, reflecting sustained demand from luxury and flagship retailers.

However, data from the Japan Real Estate Institute (JREI) and BAC Urban Projects showed average asking rents for ground-floor (1F) units declined 10.6% half-on-half and 7.3% year-on-year, largely due to the absorption of several premium-priced listings which lowered the overall average. In contrast, non-1F asking rents rose 1.0% half-on-half and 4.6% year-on-year.

Savills noted that tight availability in core locations and resilient retailer demand are expected to continue supporting overall market sentiment.

In Ginza, vacancy on prime streets remains virtually non-existent, with demand underpinned by luxury brands and flagship openings. While 1F asking rents fell 10.0% half-on-half to JPY63,700 per tsubo, this was attributed to the absorption of high-rent listings rather than weakening fundamentals. Non-1F rents increased 4.2% half-on-half and 10.4% year-on-year to JPY37,200 per tsubo.

Recent activity includes LOEWE’s CASA LOEWE Ginza flagship at Ginza 5-chome and JINS’ global flagship opposite Apple Ginza, highlighting continued demand for prime frontage.

Omotesando also remains tightly occupied along Omotesando-dori, where achieved rents reportedly remain above pre-pandemic levels. However, average 1F asking rents declined 11.5% half-on-half to JPY54,100 per tsubo due to increased listings in secondary locations. Non-1F rents rose to a record high of JPY39,300 per tsubo.

In Shinjuku, average 1F asking rents fell 16.8% half-on-half to JPY53,500 per tsubo, driven by vacancy increases outside core streets. Despite this, demand from lifestyle and inbound-focused retailers remains strong, with new flagship openings by brands such as JINS and BLUE ELEPHANT reinforcing leasing activity.

Shibuya continued to see firm occupier demand, particularly from tourism-oriented retailers. Average 1F asking rents declined 1.5% half-on-half to JPY45,500 per tsubo, while non-1F rents edged up 0.3% to JPY37,400 per tsubo.

Savills said tight availability and sustained inbound tourism demand are expected to continue supporting Tokyo’s prime retail market, particularly in core luxury corridors where vacancy remains extremely limited.