Rents remain stable, first floors indicating recovery
The average advertised rent for street facing retail stores on first floors for the third quarter of 2009 was slightly below 34,000 yen, which was a 4% decrease over the same period of the previous year, although it was a 2% increase over the previous period (the second quarter of 2009).
After marking a significant drop in the second quarter of 2008, rents for first floors have remained stable between 30,000 and 35,000 yen and have increased slightly since the second quarter of 2009.
Advertised rents in the Shibuya area
| 08Q3 | 08Q4 | 09Q1 | 09Q2 | 09Q3 | YoY | QoQ | ||
|---|---|---|---|---|---|---|---|---|
| Advertised rent (Yen/Tsubo) | 1F | 35,026 | 32,482 | 32,785 | 33,145 | 33,798 | 96％ | 102％ |
| Upper floors | 27,039 | 26,480 | 24,826 | 23,379 | 22,833 | 84％ | 98％ | |
| Average | 28,628 | 27,706 | 26,414 | 25,188 | 24,879 | 87％ | 99％ | |
| No. of advertised properties | 1,009 | 1,239 | 1,506 | 1,366 | 1,072 | 106％ | 78％ | |
Casual fashion brands from overseas are opening new stores in this area, including the flagship store of Sweden's H&M and the second Shibuya store of Spain's ZARA.
Looking at floors above the first, advertised rents have been declining, which may indicate lowered interest from restaurant tenants in opening stores in the area. Although the number of properties recruiting tenants is greater than in other areas, it is declining to the level of the third quarter of 2008.
