The impact of a reactionary fall in consumption on retail leasing markets in Tokyo’s main streets are thus, widely believed to be limited. However, the current market does not warrant optimism for both landlords and occupiers because rises in construction prices as high as 50% in the last year have been reported. They were caused by a surge in prices of construction materials and a shortage of skilled workers.
As a result, shopping center development plans by development giants must revise the number of plans downward by 20-30% than scheduled previously. In anticipation of continual rises in construction and labour costs, rents and land values, there will be a clearer divergence of corporate performance, depending on the extent to which a corporation is strong and strategically executes business.