TOKYO Cushman & Wakefield Global Cities Retail Guide Cushman & Wakefield | Tokyo | 2019 0 Born of commerce and complexity, Tokyo is the very definition of a metropolis. Twenty-three wards, 39 municipalities, and 13.6 million people join to form Japan’s capital. Include the 3 surrounding prefectures of Kanagawa, Saitama and Chiba, and you have a population base that exceeds 36 million people. Above the city’s busy streets, Japan’s economic engine occupies the office spaces of the seemingly endless metropolitan sprawl. Tokyo is the premier portal to world business in this part of the globe and it is one of the largest cities globally in terms of economic size as it has an estimated GDP of USD 973 billions. Tokyo is also home to 51 Fortune Global 500 companies and over 600 headquarters. Currently, Japan is enjoying the most stable political environment seen since Prime Minister Koizumi was in power. Prime Minister Shinzo Abe and his 3 arrows of aggressive monetary policy, flexible fiscal policy and growth strategy, including structural reform, have helped drive economic growth in the short term and the outlook for the economy under his leadership is positive. These policies and the anticipation of the 2020 Olympic and TOKYO Para-Olympic games are contributing to the record numbers of international tourists and the value of commercial and residential real estate in Japan’s larger OVERVIEW markets. Cushman & Wakefield | Tokyo | 2019 1 TOKYO KEY RETAIL STREETS & AREAS GINZA OMOTESANDO Ginza, comprising Chuo Dori Avenue and Harumi Dori Omotesando offers some of the most awe-inspiring Avenue, is the long established retail leader in Tokyo and flagships and an aesthetically pleasing avenue that makes is globally recognized area as one of the world’s top this trade area comparable to the likes of Champ-Elysees performing and most expensive (rent per sq ft) retail in Paris. Omotesando is considered to be Tokyo’s areas. It enjoys a strong presence of department stores alternative trade area for luxury and aspiration brands and flagship shops from industry leading retailers. Ginza which attracts a broad range of shoppers, from Tokyo’s is home to three of Japan’s most prestigious department true fashionistas, young professionals, tourists, and local stores including Wako, Matsuya, and Mitsukoshi. area residents. SHINJUKU AOYAMA Shinjuku is home to the biggest train station in the world, Aoyama is the home to Tokyo’s Avant-Garde and with over 4 million passengers per day. Every imaginable destination flagships, such as Comme de Garcons, James type of retail can be found around this sprawling station, Perse and Prada. Aoyama is the original home to Tokyo’s including department stores, standalone retail, F&B, underground and sophisticated fashion, with a contrast to electronics and sports. This area is literally the hub of its more commercial neighbour, Omotesando. Recently, Tokyo due to its supreme accessibility to other Tokyo upscale F&B has been increasing its presence here, in locales and the Greater Tokyo area. Shinjuku is home to this very quaint retail area. Isetan, Japan’s highest grossing department store and Lumine, Japan’s highest earning station/fashion building. HARAJUKU Harajuku has consistently kept its place as the birthplace SHIBUYA of Japanese underground fashion for well over 40 years Shibuya is home to the high-powered SCRAMBLE and has evolved into one of the three major commercial pedestrian crossing with an astonishing 45,000 people trading areas in Tokyo. This area serves as one of the crossing per hour. Shibuya offers retail, entertainment biggest magnets for the young fashionistas in Japan. In an and F&B for a broad audience including teenagers, young almost cult-like manner, Harajuku shoppers are couples, young professionals and families. Shibuya knowledgeable about their style and are the driving force station is undergoing redevelopment and there will be at behind the underground street fashion originating here. least 6 buildings completed within 10 years close to Brands such as A Bathing Ape were born in the Shibuya station. backstreets of this dynamic retail area. Harajuku has become the home to the highest concentration of casual apparel retailers with flagships for H&M, ZARA, American Eagle, GAP and Tommy Hilfiger. Cushman & Wakefield | Tokyo | 2019 2 TOKYO MARKET OVERVIEW KEY AREAS / CONSUMER PROFILE MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RANGE OF STREETS RENT FOR UNIT SIZES TIER 1 Ginza Customers range from affluent local Louis Vuitton, Dior, Chanel, Apple, Tiffany, Bvlgari, Moorer, APM USD 766 - 1,226/ 1,067 - 10,675 shoppers, mature shoppers 50+, and Gucci, Hermes, Prada, Armani, Fendi, Valentino, Monaco, Onitsuka sq ft/ year sq ft fashion connoisseurs. Tourists from Chaumet, Bottega Veneta, Cartier, Mikimoto, Coach, Tiger, Tory Burch Asia, particularly China also make their Burberry, Furla, Dunhill, Moncler, MCM, (re-entry), Intimissimi appearance in this acclaimed retail area. Abercrombie & Fitch, Zara, Uniqlo, Diesel, Van Cleef & Arpels, Max Mara, Michael Kors, Longchamp Shinjuku Shoppers in Shinjuku range from all Louis Vuitton, Tiffany, Burberry, Coach, Gucci, H&M, Apple, Lululemon USD 460 - 981/ 3,558 - 16,012 markets; young, mature, professional, Zara, Forever 21, Uniqlo, MUJI, Adidas, Levi’s sq ft/ year sq ft and families. Omotesando Shoppers in this area range from Ralph Lauren, Paul Stuart, Fendi, Apple, Louis Innisfree, Palace USD 460 - 920/ 1,067 - 5,337 fashion-conscious professionals, Vuitton, Christian Dior, Chanel, Burberry, Gucci, Skateboards, sq ft/ year sq ft working women aspiring for the best, Celine, Loewe, Saint Laurant, Tod’s, Moncler, Woolrich, Stone tourists and wealthy local residents Prada, Jimmy Choo, Emporio Armani, Coach, Marc Island, Longchamp looking to shop and stroll through a Jacobs, Dolche & Gabbana, Comme de Garcon, pleasant avenue in style. Ted Baker Harajuku Harajuku has consistently kept its place H&M, Zara, GAP, Tommy Filfiger, American Eagle, Line Friends, Kakao USD 460 - 920/ 2,669 - 17,792 as the birthplace of Japanese SKECHERS, GUESS, NIKE, Adidas, Puma, New Friends, Galaxy, GU sq ft/ year sq ft underground fashion for well over 40 Balance, ASICS, GU, Zara, North Face, Snow Peak years. This area by no means lags in the and Columbia amount of young fashionistas that it attracts, in an almost cult-like manner. Shibuya Customers are a broad mix of school- Tokyu 109 (the Mecca of young women’s fashion), Charles & Keith, USD 307 - 613/ 1,779 - 16,012 aged shoppers to fashionable young Forever 21, Zara, H&M, Bershka, Adidas, GAP, Champion, sq ft/ year sq ft couples, professionals and tourists. Apple, Disney Store, Uniqlo, ABC Mart and many DESCENTE, XEBIO, others GU Data as of April 2019 Cushman & Wakefield | Tokyo | 2019 3 TOKYO SHOPPING MALLS GINZA SIX This world-class redevelopment opened in April 2017. The OMOTESANDO HILLS redevelopment was of epic scale, and involved Located alongside the Omotesando Boulevard leading redeveloping two blocks, including the former toward Meiji Shrine, Omotesando Hills is a commercial Matsuzakaya Department Store and surrounding area. complex consisting of a shopping mall, residential space This newly completed mixed-use complex is Ginza’s and parking developed by Mori Building from the Dojunkai newest and largest of its kind, consisting of retail space, Aoyama Apartment complex, which was a renowned offices, a theater, a tourist information center, and a tour landmark of Omotesando for many decades. Designed by bus bay. It is also home of luxury brands which facing an internationally acclaimed Japanese architect Tadao main street including House of Dior, FENDI, Saint Ando, its façade extends approximately 250 meters along Laurent. With 505,903 SQ FT of retail space, it is the the boulevard and has a total floor area of 366,630 SQ FT largest area of retail in the Ginza area, with 241 tenants with over 100 tenants. Omotesando Hills is a unique (merchandise sales 210, restaurants 24, services 7). cultural / commercial complex, emerging as the new face of Omotesando, which has created and disseminated LUMINE SHINJUKU various trends as the hub of Japanese fashion and cultures. The Station/Fashion building which directly connected to the world highest traffic Shinjuku station. LUMINE is operated by East Japan Railway Company (JR East) and located major stations in Greater Tokyo. There are three LAZONA KAWASAKI PLAZA different concept malls in Shinjuku, LUMINE SHINJUKU, Directly connected to the main terminal of Kawasaki LUMINE EST and NeWoMan and it generated Station, Lazona Kawasaki Plaza attracts visitors from an approximately USD 910 million in total of the three malls. extensive area and is among the shopping complexes 20’s – 40’s female are main target for each mall. Each with the highest sales and the largest number of visitors in shop less than 1,000 SQ FT generates high sales Japan. Kawasaki station is a major station between performance. Yokohama and Tokyo with approximately 598,000 passengers per day. Since its opening in 2006, Lazona ROPPONGI HILLS Kawasaki Plaza has seen increasing annual sales, and in 2017, it generated approximately USD 860 million, with Large-scale commercial complex consisting of a shopping approximately 36 million cash register transactions. mall, art museum, cinema complex, hotel, residence and office including TV and radio broadcast stations. Located center of Tokyo, and landmark building of Tokyo. Many embassies have been located around the facility which makes international atmosphere with many foreign visitors. Approximately 40 millions visitors per year and Cushman & Wakefield | Tokyo | 2019 have 454,000 SQ FT shopping mall area with over 220 4 shops. TOKYO FOOD & BEVERAGE Tokyo revolves around its food Gourmet coffee too has earned a special place in the hearts of Japanese consumers as gourmet focused culture – no matter what you are groups like Dean and Deluca continue to expand and Blue looking for, be it fine French dining Bottle Coffee continues to draw crowds.