The 6 most advanced use of high-end shopping premises

This COVID-19 pandemic looks a bit of screener which selects the survivors under the new normal. Especially, rich individuals’ profiles have been changing and it’s really hard to sell the luxury products for on-site sales. High-end shopping streets had been fully occupied with those luxury brands as they preferred those premises as flagship store as the advertisement. Under the new normal started from COVID-19 pandemic, the possible businesses as the tenant for premises on the high-end shopping streets may be the following.

1 Street streaming studio

The premises facing to the street and the space where occupiers  can release the Live Streaming programs or information. For instance, a famous chef arranges cooking program at the ground floor premises, shoppers step by and watch his creations, taste the wonderful dishes at the second floor or basement, then all the process, including actual customers’ on site feedbacks,  can be released via Youtube Live streaming. Shoppers and visitors can also spread their experiences through SNS and bring that chef some advertisement effect.

Users can be chefs, restaurant owners, wine/ sake producers, artists, sports or training instructors, and so called SNS influencers. For instance, 30 tsubo spaces, a influencer with  100 K followers uses half day. He could sell his product at, say 1000 JPY for 3 percent of his followers. Total sales is 3 mil JPY. Say the rental fee ratio is estimated at 10% of the gross revenue, 300K JPY, 10,000 tsubo/ half-day. Assuming that twice per day the event can be arranged,  the occupancy is 80%, this business generates the rent of 480 K JPY /tsubo/month.

2 Reverse mentor service for seniors

As Microsoft announced that they provide programs for companies’ employees to be updated with remote working system. In Japan, especially seniors are not good at using IT environments. For them to survive new normal brought with COVID-19, a sort of reverse mentor ship works. Younger worker becomes their personal IT trainer and through face to face instructions, those seniors are gradually getting used to the updated IT system including SNS. Instruction fee is estimated, say, 20,000 JPY/ person/hour.  For 30 tsubo, max four seniors can have a session. Occupancy ratio is 80%, operates 18 hours per day, one month revenue is 34.5 mil JPY. The rent expense ratio is estimated as 12 %, the rental value is 4.2 mil JPY. Per tsubo rent is 138,000 JPY/month.

3 Shared office and studio for mental health counselors

More and more people may suffer from depressions or mental health issues, HSP, PTSD, ADS etc. Patients would feel more comfortable through face to face meeting with reliable counselors/ doctors. Doctors may want to have office in a good location but don’t need to use all the time as they arrange sessions via remote communication tools. Probably 2-3 full days per month, they use the city central office and arrange seminar, record promotional video clips, and have private sessions for their loyal customers, then entertain them in nearby facilities. For instance, most of famous counselors generates monthly sales of 2 mil JPY and,say, their rent fixed cost accounts for 12% of the total revenue. The rent expense is 240,000 JPY. They can share the space with ten professionals and the same 30 tsubo space can generate 2,4mil JPY. (80,000 JPY/tsubo/month)

the topis will be continued to the next news letter.

Further queries or doubts, please email to ytomizuka@abrilsjp.com

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