Prime Retail Markets Across Japan

Isao Suga

Isao Suga

Executive Director, Head of Retail Services, Japan

Phone +81 (3) 3596-7033

Contact me

The full report

The retail report “Prime Retail Markets Across Japan” features a rental rate based ranking of Japan’s most prominent retail markets and an analysis of changes that took place across the survey period. The report also features a summary of the current underlying trends present in the market. This report is available in Japanese and English.

Download the report

REPORT SUMMARY


The landscape of Japan’s mature retail market is gradually changing. Area redevelopment projects will change the pedestrian flow and each submarket’s fundamentals, continue to show change. Subsequently retail markets are shifting and we are seeing changes in the relative positions of Japan’s major retail markets. While the Top Tier Ginza market is showing no signs of relinquishing the number one position, the 56 markets below are due for some exciting changes. For instance, Shinjuku has come close to bridging the gap between it at the Omotesando, Harajuku and Aoyama area. Given the supply and demand balance, it is likely that Shinjuku will surpass Omotesando and move into the second spot during the next few years. Over a longer term horizon, rents in Shibuya and Ikebukuro should benefit from station area redevelopment projects. Ikebukuro’s new developments are located in the traditional retail areas and will contribute to the overall growth of the area through significantly improving the area image. Shibuya on the other hand, will see an expansion of the viable retail area and a fundamental change to its pedestrian traffic flows.

As omni-channel retailing becomes further entrenched, the physical retail store is evolving beyond mere show rooming and is increasingly shifting towards a community oriented model where consumers feel a sense of belonging. Further, as consumer preferences shift, the emergence of trends such as pop-up shops, athleisure and food halls is expected to have a profound impact on the foundations of the retail market.


Top 20 Ranking

Area

Q2 2017

2016

2015

Rent  JPY/Tsubo/Month

(As at Q2 2017)

 

USD/SF/Year

Ginza Tier 1

1

1

1

 

400,000

1,209

Omotesando Tier 1

2

2

2

 

300,000

907

Harajuku Tier 1

2

2

5

 

300,000

907

Aoyama Tier 1

2

2

5

 

300,000

907

Shinjuku Tier 1

5

5

2

 

280,000

846

Ginza Tier 2

6

6

2

 

250,000

756

Shinsaibashi/Midosuji Tier 1

6

7

8

 

250,000

756

Shibuya Tier1

8

8

7

 

200,000

605

Omotesando Tier 2

9

9

8

 

150,000

453

Harajuku Tier 2

9

9

8

 

150,000

453

Aoyama Tier 2

9

9

8

 

150,000

453

Ikebukuro Tier 1

9

9

13

 

150,000

453

Umeda Tier 1

9

9

15

 

150,000

453

Shinjuku Tier 2

9

9

15

 

150,000

453

Kichijyoji Tier 1

15

15

13

 

120,000

363

Sakae Tier 1

15

16

8

 

120,000

363

Ginza Tier 3

17

16

15

 

100,000

302

Roppongi Tier 1

17

16

15

 

100,000

302

Jiyugaoka Tier 1

17

16

15

 

100,000

302

Marunouchi Tier 1

17

16

21

 

100,000

302