Tokyo’s Retail Real Estate Trends Q1 2024: Opportunities for Foreign Investors

Summary of CBRE Japan Retail MarketView Q1 2024

Who is CBRE?

CBRE Group, Inc. (Coldwell Banker Richard Ellis) is a global commercial real estate services and investment firm headquartered in Los Angeles, California.

With operations in over 100 countries, CBRE is the world’s largest commercial real estate services and investment firm, offering a broad range of services,

including property sales, leasing, management, valuation, and advisory. Renowned for its extensive market research and industry insights,

CBRE provides valuable data and analysis to help investors, property owners, and tenants make informed decisions in the real estate market.



The CBRE Japan Retail MarketView (commercial properties) for Q1 2024 provides a comprehensive analysis of the retail real estate market across various key high street areas in Japan.

The report highlights trends in vacancy rates, average rents, and sector-specific demand, focusing on both Tokyo and regional cities.

Understanding Tsubo

In the Japanese real estate market, “tsubo” is a common unit of measurement for area. One tsubo is approximately 3.3 square meters or 35.6 square feet.

This unit is often used when discussing property sizes and rental rates in Japan, especially in the context of commercial and retail spaces.


Key Findings


 ・Vacancy Rates and Rents

Ginza: Vacancy rate fell to 1.0%, the lowest since Q1 2017. Average rent remained stable at JPY 263,000 per tsubo.

Shibuya: Significant drop in vacancy rate to 0.4%, with average rent rising to JPY 139,000 per tsubo.

Omotesando/Harajuku: Vacancy rate decreased to 1.8%, with rents increasing to JPY 200,800 per tsubo.


Shinsaibashi (Kansai region): Vacancy rate fell to 1.7%, with rents surging to JPY 244,000 per tsubo,

               representing a 23.2% increase over pre-pandemic levels.

Kyoto: Slight increase in vacancy rate to 3.4%, but average rents surged by 14.0% to JPY 110,000 per tsubo.

Kobe: Vacancy rate rose to 4.7%, with rents increasing by 4.8% to JPY 109,500 per tsubo.


Nagoya (Sakae): Vacancy rate remained at 0.0% for the sixth consecutive quarter, with average rent stable at JPY 71,000 per tsubo.


Fukuoka (Tenjin): Vacancy rate fell to 1.6%, with average rents increasing by 3.6% to JPY 58,200 per tsubo.


  • Sector-Specific Trends

Outdoor and Sporting Goods:

Significant demand, accounting for 22.6% of new store space.

This sector is expanding due to rising health-consciousness and an increase in foreign tourists.

Fashion and Luxury Goods:

Strong demand observed, especially in prime areas of Tokyo and Kansai regions.

This includes new store openings by apparel, wristwatch, and eyewear retailers.


  • Regional Highlights


High demand in prime areas, particularly in Ginza and Omotesando/Harajuku, driven by luxury goods brands,

overseas apparel retailers, and showroom operators.


Kansai Region:

Strong leasing activity in Shinsaibashi and Kyoto, with rents surpassing pre-pandemic levels

due to increased demand from sporting goods and luxury retailers.

Kyoto: Increased tourist activity stimulating retail demand, leading to significant rent increases across almost all sections of Shijo-dori.



The CBRE Japan Retail MarketView Q1 2024 report indicates a positive outlook for the retail real estate market.

With declining vacancy rates and rising rents in key high street areas, the ongoing demand from sectors such as outdoor and sporting goods, fashion,

and luxury goods suggests a healthy market environment for both investors and retailers.


Market Insights for Foreign Investors

The current trends in the Japanese retail market present significant opportunities for foreign investors.

The robust demand for retail space, especially in prime high street locations, coupled with rising rents,

suggests a healthy return on investment for well-placed properties.


The resurgence of tourism is a key driver, making locations with high tourist footfall particularly attractive.



Foreign investors should consider:

Prime Locations:

Investing in areas with low vacancy rates and high demand, such as Ginza, Shibuya, and Omotesando/Harajuku in Tokyo,

as well as Shinsaibashi and Kyoto in the Kansai region.

Sector Focus:

Targeting sectors with strong growth, such as outdoor and sporting goods, fashion, and luxury brands, which are driving demand for retail space.

Market Timing:

Entering the market while rents are still on an upward trend, ensuring a good position before further increases make entry more expensive.


For personalized advice and detailed information on the best investment opportunities in Tokyo and other prime locations in Japan, contact us at Yamamoto Property.

Our team specializes in assisting foreign investors navigate the Japanese real estate market, ensuring you make informed decisions for maximum returns.

Contact us today to schedule a consultation and explore the most lucrative properties available.


Contact us at or visit our website to learn more about our services and current listings.





Toshihiko Yamamoto Real Estate Investment Consultant, Author, and Founder of Yamamoto Property Advisory, Tokyo

Licensed Real Estate Broker (Japan), CCIM, MBA


Toshihiko specializes in assisting foreign companies and individuals in purchasing, managing, and selling properties in Japan. 

He holds a Bachelor’s degree in Economics from Osaka Prefecture University and an MBA from Bond University, Australia.

Discover Toshihiko’s expertise in his book,

“The Savvy Foreign Investor’s Guide to Japanese Properties: How to Expertly Buy, Manage, and Sell Real Estate in Japan,”

available now on Amazon, iBooks, and Google Play.

Please connect with us via social networks, including Instagram, WhatsApp, and LINE for more information and assistance.





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