Japan Retail MarketView Q3 2025

Average rents set new record highs in six areas; 
Shinjuku vacancy rate falls to the 1% range

• Average rents rose q-o-q in seven of the 10 surveyed areas in Q3 2025, remaining unchanged in the other three. The number of areas with rents above pre-pandemic levels was unchanged from the previous quarter, standing at seven. Rents in six areas (Ginza, Omotesando/Harajuku, Shinsaibashi, Kyoto, Kobe, and Tenjin) rose to the highest levels since CBRE’s surveys began.

• The number of areas with a 0.0% vacancy rate in the prime area remained at four (Ginza, Shibuya, Shinsaibashi, and Sakae). Shinjuku saw the steepest drop in vacancy, falling by 2.5 pp q-o-q to 1.4%, primarily due to the absorption of a large vacant unit. 

• Outdoors/sporting goods and fashion drove demand this quarter. During the period, retailers of sporting goods in Shinjuku and apparel in Kyoto decided to open large stores. 

• Rents are projected to continue rising nationwide. In Ginza, average rents should be supported by burgeoning demand from diverse retailers with ample financial capacity. Additionally, multiple retailers are seeking relocation following the expiration of leases due to renovation or rebuilding. Retailers who urgently need to secure relocation space to maintain sales volume may be willing to accept the high rent levels demanded by landlords.