, Japan

Ginza retail rents hit highest levels since the pandemic began

Rents increased 11.8% in the second half of 2021.

Average 1F asking rents in Ginza, Japan rose 5.8% HoH and 11.8% YoY to JPY75,100 per tsubo – the highest rent levels seen since the pandemic began, according to Savills. 

Meanwhile, non-1F rents have increased 5.3% HoH to JPY31,900 per tsubo, translating to a slight annual decline of 0.3%. Ginza was also the only submarket in Tokyo to have seen an annual decline in rents. Overall, Ginza’s 1F rents still stand a head above its peers in the Tokyo market, while its non-1F rents are actually below average. 

Here’s more from Savills:

Ginza is the epitome of high-end shopping districts, and many luxury brands have flagship stores in the area to associate their brands with the opulence of Ginza. The luxury goods industry has still seen favourable performance over the past half-year, and this has allowed Ginza to maintain low vacancy rates in prime locations. At the same time, the pool of districts regarded as prime areas has been shrinking, and some brands have been reportedly shifting stores to more prominent locations. 

Meanwhile, the situation outside prime areas remains more challenging – vacancy rates are higher, especially along areas like Ginza 1-chome, and imminent recovery is unlikely without the return of inbound tourists. However, there are still some positives for these locations. 

Mid-to-high floors that generally performed poorly during the pandemic have seen vacancy rates flatten, and some have been filled by clinics and beauty services. Furthermore, there have even been some openings from the F&B industry. Overall, while the market situation in Ginza is still distant from pre-pandemic times, some gradual recovery has been observed in many areas.

 

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