June 3, 2013

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Findings from Xymax’s collaborative research with Dr. Naoki Katoh, Professor of Kyoto
University Graduate School of Engineering

Japan’s large retail properties provide 86 sq km of retail floor area in total
Equivalent to about 1.3 times the size of Tokyo’s Yamanote line or Manhattan Island
In Japan until recently there were very limited statistics focusing on retail properties and almost no such statistics covering
the entire nation (NOTE 1). The current available retail statistics are mostly targeting retailers and providing informationsuch as the number of stores and sales. Unlike the office property sector where regular data releases like vacancy rate
are available, the retail property had no similar data releases.
To provide fundamental data for the retail property market in Japan, Xymax Real Estate Institute collaborated with Dr.
Naoki Katoh, Professor at Graduate School of Engineering, Kyoto University and created a retail property database
covering all over Japan (NOTE 2). The joint team estimated the retail floor area of goods retailers, service-oriented shops,
and restaurants in large retail properties (defined as goods retail area is 4,500 sq m or larger) (NOTE 3).
Furthermore approximately 1,000 properties were selected from the database as “Select 1000” (NOTE 4), Xymax Real
Estate Institute individually estimated the vacant tenant space ratio by gathering the latest vacancy data of the Select1000 properties.

Summary of findings
Retail floor area of large retail properties
Total retail floor area (estimate): approx. 86 sq km (86,000,000 sq m)
Large retail properties in this report are retail properties with 4,500 sq m or larger goods retail area.
The total retail floor area is estimated by combining the areas occupied by goods retailers, service-oriented
shops, and restaurants.

Retail floor area by type

The goods retail areas below are based on the notification submitted under the large-scale retailstores location law. The service-oriented shop and restaurant areas are estimated based on oursimulation model (see page 3-4).

By tenantGoods retailer 78.7%

Service-oriented shop 17.1%

Restaurant 4.2%

By property type
Suburbs along major road 33.6%

Station front / near railway station 25.4%

Suburban residential area 12.3%
By prefecture
Tokyo 8.2%

Osaka 6.8%

Kanagawa 6.7%

Aichi 6.4%

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed.
Copyright © 2013 XYMAX Corporation. All rights reserved.

June 3, 2013

Hokkaido 4.9%

Fukuoka 4.7%

Vacant tenant space ratio of Select 1000 properties
Vacant tenant space ratio: 2.7%
The above vacant tenant space ratio (not the vacancy rate on floor area) is the ratio of the total number ofvacant tenant spaces to the total number of retail spaces. See page 5 for details.

Xymax Real Estate Institute will continue studies of occupied and vacant tenant spaces in retail properties in Japan,
update the database, and analyze the data. Our findings will be released as fundamental information for the retail property
market.

NOTE 1 Examples of retail statistics include the Current Survey of Commerce by the Ministry of Economy, Trade, and Industry and theDepartment Store Sales by Japan Department Stores Association. Also, Japan Council of Shopping Centers publicized theestimated retail floor area of 3,090 properties across Japan as of the end of 2011 (4,570,000 sq m).
NOTE 2 Xymax Retail Property Database
The 15,000 occupied and vacant tenant spaces in approx. 7,640 properties are included in the database. The subject
properties include: approx. 6,000 retail properties either with over 4,500 sq m goods retail areas located in Japan ormulti-tenant properties (25 tenants or more) in major cities; approx. 1,500 office buildings with retail spaces; and approx. 140
restaurant buildings in major high streets in Tokyo.
NOTE 3 The retail floor area in retail properties across Japan is estimated based on the estimation model developed in our collaborative
study project with the architecture laboratory of Professor Naoki Katoh at Graduate School of Engineering, Kyoto University.
NOTE 4 Criteria of Select 1000
Properties with 4,500 sq m or larger goods retail area and 25 or more tenant spaces. Also it should be possible to check thecurrent occupancy of the property by visiting the site etc.

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed.
Copyright © 2013 XYMAX Corporation. All rights reserved.

June 3, 2013

Retail floor area of large retail properties
Estimation method
Subject property
142,335 tenant spaces in 5,472 large retail properties in Japan (goods retail area: 4,500 sq m or larger per property)
Data collection period
May 2012 - August 2012
MethodGoods retail areas (goods-selling tenant areas) are based on the floor areas specified in the notification submitted
under the Large-scale Retail Stores Location Law. Our subject properties account for almost 70% in terms of thegoods retail area of all the properties under this law (approx. 20,000 properties in total). The service-oriented shopand restaurant (restaurants, cafes, bars, etc.) areas are estimated based on Xymax’s accumulated data (9,590
lease contracts with tenants in 458 properties).

In this estimation model, four types of probability distributions are applied for each category (sector, property type,etc.). The figures in the table below are the average floor area derived from the Monte Carlo simulation.

Retail floor area of large retail properties (estimate) Overall estimation

Retail floor area (sq m)

Goods

Service

Restaurant

67,771,085

14,758,989

3,606,656

86,136,730

78.7%

17.1%

4.2%

100.0%(%)

Total

By property type (estimate) (sq m)
Goods

Service

Restaurant

Total

(%)

Station building / directaccess from station

3,305,484

866,549447,708

4,619,741

5.4%

Station front / near station

15,869,139

4,795,730

1,205,214

21,870,083

25.4%

Shopping street

5,557,357

1,099,574

286,495

6,943,426

8.1%

Suburban residential area

8,452,822

1,862,336

311,614

10,626,772

12.3%

Suburbs along major road

23,997,187

4,071,361

834,979

28,903,527

33.6%

Other

10,589,096

2,072,380

520,860

13,182,336

15.3%

67,771,085

14,767,930

3,606,869

86,145,884

100.0%

Total

Note: The total figure in the retail floor area by property type and that by prefecture may differ from technical reason because they wereindividually run the model based on different category.

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed.
Copyright © 2013 XYMAX Corporation. All rights reserved.

June 3, 2013

By prefecture (estimate) (sq m)
PrefectureGoods

Hokkaido

3,306,165

Service734,235Restaurant
145,162

Total
4,185,562

(%)
4.9%

Aomori

829,631

128,040

31,037988,708

1.1%

Iwate

644,908

169,356

36,816

851,079

1.0%

Miyagi

1,476,431

275,227

56,768

1,808,426

2.1%
0.9%

Akita

632,541

90,70620,011

743,258

Yamagata

556,589

77,122

14,869648,579

0.8%

Fukushima

987,537

165,485

29,5691,182,591

1.4%
2.5%

Ibaraki

1,743,062

352,747

73,0502,168,859

Tochigi

1,209,359

188,573

46,305

1,444,236

1.7%

Gunma

1,176,161

167,51937,042

1,380,722

1.6%

Saitama

3,587,192

908,996

198,610

4,694,798

5.4%

Chiba

3,760,700

898,342

195,908

4,854,950

5.6%

Tokyo

5,404,836

1,179,701

492,954

7,077,491

8.2%

Kanagawa

4,284,459

1,170,940

303,919

5,759,318

6.7%

Niigata

1,348,214

189,539

49,412

1,587,165

1.8%

Toyama628,208

165,187

30,708824,103

1.0%

Ishikawa

790,274

171,178

32,180993,632

1.2%

Fukui

435,554

59,13412,004

506,693

0.6%

Yamanashi

521,205

82,771

21,451

625,427

0.7%

Nagano1,064,788

188,671

36,027

1,289,486

1.5%

Gifu

1,136,370

331,368

62,9391,530,677

1.8%

Shizuoka

1,605,005

315,544

74,592

1,995,140

2.3%

Aichi

4,195,733

1,113,639

221,826

5,531,198

6.4%

Mie

1,339,745

357,101

57,583

1,754,428

2.0%

Shiga

1,138,720

190,035

38,162

1,366,917

1.6%

Kyoto

1,222,905

264,721

69,117

1,556,743

1.8%

Osaka

4,389,014

1,095,071

365,977

5,850,062

6.8%

Hyogo

3,455,402

988,935

214,459

4,658,796

5.4%

Nara

738,840

212,475

38,460989,775

1.1%

Wakayama

427,740

70,264

12,175510,179

0.6%

Tottori

333,181

59,957

13,159406,297

0.5%

Shimane288,833

44,79410,004

343,631

0.4%

Okayama

908,721

149,535

25,7471,084,003

1.3%

Hiroshima

1,757,315

354,330

84,903

2,196,548

2.5%

Yamaguchi

841,943

126,138

28,762996,8421.2%

Tokushima

283,099

45,808

10,715

339,622

0.4%

Kagawa707,557

111,528

25,880844,965

1.0%

Ehime

685,246

154,246

32,315871,807

1.0%

Kochi

224,796

41,1359,148

275,080

0.3%

Fukuoka

3,265,093

601,123

176,187

4,042,403

4.7%

Saga

441,207

68,75018,472

528,429

0.6%

Nagasaki

503,911103,224

22,722629,857

0.7%

Kumamoto

927,603

162,847

31,8991,122,349

1.3%

Oita

668,143

100,561

19,307

788,0110.9%

Miyazaki

513,091

82,353

19,147

614,590

0.7%

Kagoshima

733,156

101,00923,438857,602

1.0%

Okinawa

650,902

159,10235,869845,873

1.0%

Total

67,771,085

14,769,058

3,606,765

86,146,908

100.0%

Note: The total figure in the retail floor area by property type and that by prefecture may differ from technical reason because they wereindividually run the model based on different category.

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed.
Copyright © 2013 XYMAX Corporation. All rights reserved.

June 3, 2013

Vacant tenant space ratio of Select 1000 properties
Estimation method
Subject property“Select 1000” – The properties with 25 or more tenant spaces selected from the 5,472 large retail properties (goods
retail area: 4,500 sq m or larger), in which we were able to check its current occupancy with floor map or by site visit
etc. 1,032 properties in total.
Data collection period
May 2012 - August 2012
MethodThe ratio of the number of vacant tenant spaces (2,571 spaces) to the number of all the tenant spaces (93,588spaces). This ratio is NOT the ratio of the size of the floor area (sq m).

Occupied space
GoodsServiceRestaurant

Vacantspace

N/A*Total

Number of tenant
spaces55,54317,493

17,779202

2,571

93,588(%)

59.3%

18.7%

19.0%

0.2%

2.7%

100.0%*N/A is those that were not able to classify into goods retailer, service-oriented shop, or restaurant.

The information contained in this report is as of the date of preparation. XYMAX accepts no liability for any inaccuracies or omissions in this report.
No copying, quoting, forwarding, distributing, reprinting or any other use of this report is allowed.
Copyright © 2013 XYMAX Corporation. All rights reserved.