The most advanced use of high-end shopping premises Part 2

For the high end shopping street, the highest and best use under the new normal might be the following.

I will explain 4-6

4 Investment school for children

As the number of children has been decreasing, parents are concerned about future retirement funds as well as children’s future occupations. Some consider education of how to build up wealth has to start at early stage as does many Western countries. For instance, the price is 100K per child per month, and 300 children can learn at 30 tsubo space per month, the revenue is 30 mil JPY, assuming 12 % is the rental expense, 3.6 mil, 120 K JPY/tsubo/month is the affordable rent.

5 Service for the “Desperate consumption”

JPs Economist, Kenichi Omae, former Mckinsey economist,( http://www.kohmae.com/ ) pointed out that most of JPs leave around 200,000 USD at the end of their lives. This is due to the high-saving preference and no spending culture we JPs have. People around 70’ or more, they suddenly see the year left for their remaining life. They don’t want to leave anything to their children or their spouses, as they don’t want to take care of parents. They immediately start spending huge amount of money for easy consumption such as lavish Sushi gourmet dining, cruise trip, or luxury belongings. Mr. Omae named that spending as “Desperate spending”. The high-end Sushi restaurant has been fully booked for next couple of years due to such consumption, he said. Therefore, those kind of luxury restaurant with daily sales 1 mil JPY can afford to pay the rent of 120K JPY/tsubo/month.

6 Legal Cannabis promotional center

In Japan, there is no regulations that officially allow that kind of products. However, taking into account the market trend in other countries, so-called promotional centre may be demanded in a very good location in Japan. Not only this but also other medical supplements prevailing in the other markets can be promoted in JPs market. For those products, more than 200 K JPY/ tsubo / month rent, which used to be seen during before Lehman bubble would not be so high, taking into account the luxury brand promotion.

Therefore, below are found as possible use for high-end shopping streets for the next era.

Personally, street streaming studio, Cannabis promotional facility as well as medical supplement supplying facility would be the most profitable use for those premises.

Different approach may be taken to seize the right timing to revamp the highest and best use of the location.

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

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