{"id":11170,"date":"2021-02-23T16:44:37","date_gmt":"2021-02-23T09:44:37","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=11170"},"modified":"2021-06-04T16:03:53","modified_gmt":"2021-06-04T09:03:53","slug":"shop-and-office-vacancy-rates-rise-in-nagoya","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/shop-and-office-vacancy-rates-rise-in-nagoya\/","title":{"rendered":"Shop and office vacancy rates rise in Nagoya"},"content":{"rendered":"

Large-scale redevelopment plans also hit a <\/span>downturn<\/span>\u00a0<\/span><\/p>\n

\"\"
Since it is difficult to make sales forecasts amid the COVID-19 pandemic, few companies are willing to become tenants and pay a large amount of rent. <\/span>PajorPawel\/Shutterstock<\/figcaption><\/figure>\n

According to The Japan Times<\/a>, Nagoya\u2019s central district is experiencing a rise in vacant stores and offices as the pandemic has result<\/span>ed in\u00a0more teleworking<\/span>\u00a0and almost no<\/span> tourists.<\/span><\/p>\n

Tsuruha Co., a major Sapporo-based drugstore operator,\u00a0<\/span>had a flagship store in Nagoya\u2019s Sakae area for overseas tourists. However, after the implementation of entry bans, the company had to\u00a0<\/span>shut down<\/span> the outlet in mid-May, together with 15 other stores in other <\/span>cities including Osaka, Kyoto, and Kobe.\u00a0<\/span>\u00a0<\/span><\/p>\n

The store, on the ground floor of a building in a <\/span>prime downtown location<\/span>, has remained vacant ever since. An\u00a0<\/span>official<\/span> from the local real estate industry explained that<\/span>\u00a0\u201cthe tenant (<\/span>Tsuhara<\/span>) closed the store with a yearly\u00a0<\/span>contract<\/span>\u00a0<\/span>left and<\/span>\u00a0keeps paying the high rent set before the pand<\/span>emic. The firm must have\u00a0<\/span>judged that if it can\u2019t expect inbound-related sales, it will suffer less\u00a0<\/span>damage<\/span> (closing the outlet) rather than keeping the store open and having the staff there.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Newly opened shopping complexes are also facing difficulties, such as\u00a0<\/span>Rayard<\/span>\u00a0Hisaya-odori Park that recently opened in September in a redeveloped park in Sakae<\/span>, as well as Bino Sakae in central Sakae.\u00a0<\/span>\u00a0<\/span><\/p>\n

Noriyuki Kawamoto, director of Tokyo-based commercial real estate services firm CBRE K.K.\u2019s Nagoya office, said, \u201csince tenants\u00a0<\/span>have to<\/span>\u00a0invest tens of millions of yens for interior work to open a store in a complex, it is\u00a0<\/span>not<\/span>\u00a0worth doing it unless they can make a solid profit.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cSince it is difficult to make sales forecasts amid the COVID-19 pandemic, few companies are willing to become tenants and pay a large amount of rent,\u201d he added.\u00a0<\/span>\u00a0<\/span><\/p>\n

The uncertainty of demand for shop spaces pours challenges on large-scale urban redevelopment projects, as well.<\/span>\u00a0<\/span><\/p>\n

Nagoya Railroad Co. announced in November to delay the joint project of<\/span> constructing a gigantic building south of Nagoya Station, and instead start on fiscal 2022. <\/span>\u00a0<\/span><\/p>\n

Office buildings where people of Nagoya and other cities commute to are also being hit by the spread of COVID-19 infections.\u00a0<\/span>\u00a0<\/span><\/p>\n

As stated by office brokerage Miki Shoji Co., the average office vacancy rate in Nagoya\u2019s business districts prior to the pandemic was\u00a0<\/span>1.91 percent, but<\/span>\u00a0has now jumped to<\/span>\u00a03.67 percent as of November 2020.\u00a0<\/span>\u00a0<\/span><\/p>\n

The increase in office vacancy can be pinned on the fact that many companies are reducing office space as\u00a0<\/span>teleworking<\/span>\u00a0<\/span>becomes more common.\u00a0<\/span>\u00a0<\/span><\/p>\n

The housing and apartment industry is adapting to better suit the current situation. <\/span>\u00a0<\/span><\/p>\n

More: Japan encourages migration out of Tokyo via home ownership<\/strong><\/a><\/p>\n

Avantia<\/span>, a Nagoya-based housing manufacturer, began selling built-for-sale houses with workspace for teleworkers.\u00a0<\/span>\u00a0<\/span><\/p>\n

Ken Nakamura, manager of the firm\u2019s Nagoya Higashi branch, mentioned that \u201cthe\u00a0<\/span>area<\/span>\u00a0is popular among workers of trading firms and major firms in the Toyota group who commute to central Nagoya. Customers asking for a teleworking space undoubtedly increased.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

Osaka-based Kintetsu Real Estate Co. says its new 21-story apartment building on sale in Sakae has a telework lounge with individual booths<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cBeing able to secure the most appropriate teleworking space within the grounds will become the new standard for an apartment life,\u201d added a Kintetsu Real Estate official.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Large-scale redevelopment plans also hit\u00a0a downturn\u00a0<\/p>\n","protected":false},"author":12,"featured_media":21033,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[146,1116,1110,1087],"class_list":["post-11170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-japan","tag-nagoya","tag-office-sector","tag-vacancy","news_country-japan","news_author-property-report"],"acf":[],"yoast_head":"\nShop and office vacancy rates rise in Nagoya | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.asiapropertyawards.com\/en\/shop-and-office-vacancy-rates-rise-in-nagoya\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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