Tokyo retail rents up 4.8% in Q3

This marks the 14th consecutive quarter of rental growth.

According to a JLL report, Tokyo retail rents in Q3 2025 reached JPY 102,164 per tsubo, per month, increasing 2.4% q-o-q and 4.8% y-o-y. Against the backdrop of tight supply and demand, both ground-floor and upper-floor rents increased, marking the 14th consecutive quarter of positive rent growth.

“Capital values increased 1.1% q-o-q and 4.0% y-o-y, reflecting rent increases. Notable transactions this quarter included the acquisition of JMF Building Jingumae 01 by a domestic operating company. The price was JPY 5.5 billion with an NOI yield of 2.4%,” the report added.

Here’s more from JLL:

Domestic consumption is recovering on better sentiment and income, while record tourism boosts inbound spending, fuelling retail sales growth. The drop in Tokyo luxury sales is only against an unusual high caused by a pre-price-hike rush demand.

Notable new openings in Q3 2025 included Tiffany and Harry Winston on Ginza Chuo-dori, Cartier alongside Harumi-dori, and the Harry Potter Shop, which opened along Omotesando.

Construction on the Hulic Ginza Building and Seiwa Ginza Building completes along Ginza Chuo-dori

New supply in Q3 included the Hulic Ginza Building (GFA 13,000 sqm) on Ginza Chuo-dori with Harry Winston and Van Cleef & Arpels as ground floor tenants. The Seiwa Ginza Building (GFA of 5,000 sqm) also completed along Chuo-dori with Loewe scheduled as the ground floor tenant to open in Q4.

Construction began on the Jingumae 3-chome Project (tentative name) in Q3 2025. This five-storey, above-ground building with a GFA of 1,300 sqm is scheduled for completion in 2026 along Harajuku-dori.

Outlook: Capital values expected to rise, reflecting rent increases

In the rental market, against the backdrop of limited supply, ground-floor rent increases are expected to accelerate again, and upper-floor rents are also expected to continue rising, so average rents are predicted to maintain an upward trend.

In the investment market, as cap rates are expected to remain flat, prices are anticipated to rise gradually, reflecting rent increases.