ACCJ Virtual Town Hall - April 24, 2020

Apr 25

Guest speakers:

Peter Fitzgerald, ACCJ President

General remarks:
- Business community is anxious about cash flow and cost savings, but many are seizing opportunities to invest in growth markets such as e-commerce and digital communication.
- We are at a stage where digitization and widespread partnerships will drive Japan’s future further and faster; inspirational how quickly members are adapting and embracing new technology.
- Although Golden Week is dubbed as “stay-at-home week,” also a good occasion to focus on taking care of yourself.

On ACCJ:
- Staying focused on delivering value to the membership, managing expectations, and smart cost-saving measures.
- We are adopting a 100% digital mindset until resuming in-person events is safe and feasible. Will re-assess after Golden Week.
- To date, over 2,000 members and guests have participated in events, with registration numbers continually climbing.

Christopher LaFleur, ACCJ Chairman

GOJ will closely monitor the number of cases over Golden Week and decide whether the state of emergency should be extended.
ACCJ advocacy efforts continue, with pending discussions with USG about the prospects of starting the second phase of U.S.-Japan trade negotiations.

Laura Younger, ACCJ Executive Director

Heartfelt thanks to the committee leaders as they continue pursuing creative and relevant content for our members.
We hope to reach others in the broader business community to further strengthen our networks and provide greater support to those in need.
ACCJ takes security concerns very seriously. Standby for additional changes to ACCJ’s digital platforms while we experiment with different technologies to meet member needs.
The next pulse survey will be released shortly, with requests for inputs on topics you would like the ACCJ to research and assist you with.

Keith Kirkham, Minister-Counselor, Foreign Commercial Service, U.S. Embassy

Our work is comprised of three main components:
- Assist U.S. companies trying to reach the Japanese market and clarify USG/GOJ policies or close information gaps affecting U.S. companies operating in Japan
- Promote U.S. companies and raise their profile in Japan by facilitating connections and platforms to showcase their solutions to pressing challenges and frequently asked questions
- Support U.S.-Japan partnerships in other countries and markets

Charles Kelly, Executive Director, CBRE
Our survey of over 300 companies revealed:

Trends in the real estate market vary.

Tenants in the retail sector are seeking rent relief or abatement due to lower sales.
- Shift in focus and performance from experiential retail to essential goods (e.g., supermarkets, bulk stores, pharmacies).
- Supply chain and logistic interruptions compound the sales challenges in retail.
Every major city is experiencing all-time low vacancy rates in office space.

Specific to Tokyo:

Office space vacancy rate is less than 1%.
90% of new supply in 2020 has been pre-committed. No cancellations so far but subject to change.
Landlords starting to make concessions in response to the evolving crisis but very much on a case-by-case basis.

Questions & Answers
What are the prospects of government policy actively encouraging landlords to offer concessions on rent?

Uncertain. The overall mood is to wait and see.
Some countries have coalesced with a unified response, but that is not yet the case in Japan.

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