These are the retail developments to watch out for in Tokyo 

The Toranomon Azabudai project is up for a transformation in 2023.

Despite some delays caused by the pandemic, Savills says several new retail developments have opened in Tokyo 2022, and more are scheduled for completion in the coming years. Many of these developments in the pipeline are large-scale, and are expected to transform their respective districts and serve as a cornerstone for human traffic. 

“A common trend is that many of these major retail establishments are being redeveloped into large mixed-use projects with an ESG focus, to make themselves integrated into the community,” the report added.

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These developments have become pivotal in generating high levels of footfall in their respective areas. Some examples include the partially completed Tokyo Yaesu Midtown, which has also begun to revitalise the east side of Tokyo station. In 2023, the massive Toranomon Azabudai project is expected to transform its vicinity due to the sheer scale of the development. While primarily an office complex, the surrounding retail space should also benefit from the newly created prestige and prominence of the establishment, whose footfall will be diversified due to the multiple usages of the development. 

Further down the road, one area in Tokyo that will see notable transformation is Shibuya station, with the rebuilding of the Tokyu Department store in the Shibuya Upper West Project in 2027. The former site will be transformed into a 117,000 sq m high-rise mixed-use development, featuring high-grade for-rent residences, and a luxury hotel on top of retail space. With these developments likely to attract a myriad of human traffic, retail businesses will benefit from the diverse footfall. On top of maintaining high environmental sustainability standards, this development also has a large green urban roof space to facilitate better social activities, and appeal to more ESG-conscious crowds. 

Shinjuku’s redevelopment of the Odakyu department store will undergo similar changes. The joint JPY200 billion redevelopment project to the west of Shinjuku station with Tokyu Land and Tokyo Metro, due for completion in 2029, will yield 282,000 sq m of mixed-use space over 53 floors, mainly high quality offices, and many lower floors will be dedicated to retail space. The development has also emphasised its dedication to renewable energy, and usage of green roofs to provide a cooling effect in the area. 

The trend of redeveloping retail buildings into large-scale mixed-use projects is not limited to Tokyo. Plans to redevelop the Mitsukoshi department store in Nagoya’s Sakae into a 34-storey luxury hotel and retail mixed-use complex by 2029 have also gained attention. ESG has also become an increasingly important focus, as seen in LaLaPort Fukuoka, which was completed in April 2022, and integrates ESG principles through its energy efficiency and generation initiatives, while embedding itself into the local community by hosting community and school events in its mixed-use space and providing several public parks. 

Overall, upcoming major retail developments in the pipeline tend to be large scale mixed-use projects. Indeed, the intrinsic diversification of revenue streams that mixed-use developments provide has become attractive, especially after experiencing the pandemic. The size and variety of these establishments are also strong enough to attract significant footfall to their vicinity. Going forward, large, integrated complexes with a strong environmental and social slant are more likely to become the new norm for major developments.