EXCLUSIVE: Japan Mulling Subsidies for Renovating Vacant Stores

Tokyo, Aug. 13 (Jiji Press)–Japan’s infrastructure ministry is considering a subsidy program for companies that renovate vacant stores negatively impacting local landscapes and rent them out, Jiji Press learned Thursday. The new program, in which local governments will designate companies engaging in community development and encourage them to enter vacant store revitalization business, is expected to be included in the ministry’s budget request for fiscal 2027. Businesses that support the regional economy, such as local construction firms and railroad operators, and nationwide hotel operators will be among the companies eligible for the project. In the revised landscape law, enacted during the parliamentary session that ran through last month, a framework was introduced for municipalities to designate companies that renovate and utilize vacant stores on behalf of building owners. The ministry is considering providing such firms with subsidies to cover part of the initial renovation costs. Under the program, layouts and designs of stores subject to renovations will be tailored to the needs of the tenants and the local areas. For example, the ministry expects to attract businesses that would renovate vacant stores in tourist areas into eateries and goods shops, and those in areas with many schools into cram schools. Designated companies will generate income by renting out the renovated stores, and their initial investments will be recouped through tenant fees. The ministry aims to ease the financial burden on these companies by covering their initial costs with public aid. The ministry is considering the program separately from a similar support system targeting historic buildings. END [Copyright The Jiji Press, Ltd.]