Malls are the future of retailing in Japan. That at least is what a number of big American shopping center developers and/or operators apparently believe. The latest U.S. company with plans for the market is CHELSEA GCA REALTY PARTNERSHIP LP. The Roseland, New Jersey mall owner and operator has tied up with a pair of big-name firms developer MITSUBISHI ESTATE CO., LTD. and trader NISSHO IWAI CORP. to run 10 or so upscale factory outlet malls in the Tokyo-Osaka corridor and elsewhere in the country. The malls, which will have roughly 50 brand-name outlets each on sites ranging in size from 753,500 square feet to 861,100 square feet, will be built on leased land to hold down up-front costs. The partners' first mall is expected to open in two years. Prospective locations include Gotenba, Shizuoka prefecture and Kaizuka in Osaka prefecture.
Time-share operator SUNTERRA CORP. is off to a fast start in Japan. The San Mateo, California company now has three properties in operation. It opened the beach-oriented Sunterra Resort Minami-Boso in Chiba prefecture at the beginning of September and the Sunterra Ski Resort Naeba in Yuzawa, Niigata prefecture at the end of the month. They join Sunterra's initial time-share property, the Sunterra Resort Kawaguchiko in Katsuyama, Yamanashi prefecture (see Japan-U.S. Business Report No. 345, June 1998, p. 13). The company also has set up a marketing office in Tokyo.
An exchange rate of ¥145=$1.00 was used in this report.