retail snapshot q4 2016 - cushwakeasia.com...retail snapshot q4 2016 chennai, india marketbeat...

Retail Snapshot Q4 2016AHMEDABAD, INDIA

MARKETBEAT

www.cushmanwakefield.com

EconomyThe GDP growth of India for the July-September quarter was

recorded at 7.3%, up from 7.1% in the preceding quarter.

Despite a short-term blip caused by the recent currency

demonetization, a normal monsoon season and impending pay

hikes for government employees are likely to spur a recovery in

consumer sentiments. In October, the Consumer Price Index

(CPI), a key price indicator of the Reserve Bank of India (RBI) for

policy purposes, was seen at 4.2% - the lowest in 14 months –

on the back of lower food inflation. Consequently, there were

expectations of a cut in the Repo Rate by the RBI in its policy

revision in December, which however, did not take place given

the slowdown in economic activity. According to the 2016 Global

Retail Development Index, which ranks top 30 developing

countries for retail investment worldwide, India has jumped 13

positions from last year to rank 2nd. The organised retail space

(malls) in India has seen high investment activity this year as

investors are bullish about the prospects of this asset class,

coupled with the opportunity to list retail assets under REITs.

Market OverviewNo new mall supply; limited leasing activity in malls.

Ahmedabad did not witness any new mall supply during the

fourth quarter of 2016. No major transaction was recorded in

malls during the quarter. This could be partly attributed to limited

availability of good quality spaces in malls. Amidst stable

inventory levels and limited leasing activity in malls, the city’s

vacancy level remained consistent at 31% at the end of 2016.

Rental values also remained stable across all submarkets.

Limited transaction activity on main streets; rentals

remained stable. Retailers from food & beverage (F&B) and

lifestyle categories preferred mixed-use developments to set up

their retail outlets. Further, quick-service restaurants are looking

for quality spaces on prime main streets such as S.G. Highway

and Prahladnagar. Rentals maintained status-quo during the

quarter.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%

Private Final Expenditure Growth 6.8% 6.2% 7.6%

Govt. Final Expenditure Growth 3.1% 5.5% 11.7%

Source: CSO, RBI, Oxford Economics

PRIME RETAIL RENTS – DECEMBER 2016

MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

C.G. Road 150 25 27 0.0% 0.0%

Law Garden 120 20 21 0.0% 0.0%

Satellite Road 150 25 27 0.0% 0.0%

Maninagar 140 24 25 0.0% 0.0%

Prahladnagar 130 22 23 0.0% 0.0%

S.G. Highway 100 17 18 0.0% 0.0%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Vastrapur 165 28 29 0.0% 0.0%

S.G. Highway 100 17 18 0.0% 0.0%

Drive-in Road 95 16 17 0.0% 0.0%

Kankaria Lake 65 11 11 0.0% 0.0%

Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted

Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91

Retail Snapshot Q4 2016AHMEDABAD, INDIA

MARKETBEAT


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Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered

to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

Siddhart Goel

Senior Director

Research Services, India

Tel: +91 80 40465555

[email protected]

OutlookLeasing activity expected to gain momentum in main

streets; rentals anticipated to rise in select main streets.

Rise in enquiries from F&B retailers on prime main streets at

S.G. Highway and Prahladnagar are anticipated to strengthen

rental values in the upcoming quarter.

Mall rental values likely to be consistent. Owing to

restrained enquiries for spaces in malls, leasing activity is not

expected to show much momentum. Rental values are also

expected to remain stable in the upcoming quarter.

SIGNIFICANT PROJECT UNDER CONSTRUCTION

Property Location Square Feet Completion Date

Applewoods Galleria Bopal 160,000 Q2 2017

SIGNIFICANT LEASING TRANSACTIONS

Property Location Tenant Square Feet

Turquoise C.G. Road Reliance Retail 10,000

Shilp Aaron S.G. Highway Creamistry 5,000

Retail Snapshot Q4 2016BENGALURU, INDIA

MARKETBEAT








(CPI), a key price indicator of the Reserve Bank of India (RBI)

for policy purposes, was seen at 4.2% - the lowest in 14 months

– on the back of lower food inflation. Consequently, there were






positions from last year to rank 2nd. The organized retail space




Market OverviewNew supply deferred due to delays in construction. Of the

approximately 2.7 msf of new mall supply scheduled for

completion in the fourth quarter, approximately half has been

deferred to the next couple of quarters, due to delays in

construction. Further, the launch of select malls totaling 1.3 msf

of space in Electronic City has been put on hold due to lack of

demand from retailers.

Vacancy rate marginally increased in Q4. Vacancy rate of

malls increased to 12.5% at the end of the quarter, from 11.7%

in the previous quarter. The increase was largely due to an

electronics retailer’s exit from a mall near CBD submarket.

Rentals across all major locations remained steady in Q4

2016. Rentals across the city remained stable in the quarter in

the absence of new supply and stable demand.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%





MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

MG Road 240 41 42 0.0% 0.0%

Brigade Road 280 47 50 0.0% -1.8%

Commercial Street 300 51 53 0.0% 0.0%

Indiranagar 100 Feet

Road190 32 34 0.0% 0.0%

Jayanagar 4th Block,

11th Main 330 56 58 0.0% 0.0%

Sampige Road,

Malleswaram 120 20 21 0.0% 0.0%

Koramangala 80 Feet

Road120 20 21 0.0% 0.0%

Vittal Mallya Road 270 46 48 0.0% 0.0%

New BEL Road 150 25 27 0.0% 0.0%

Marathahalli Junction 160 27 28 0.0% 0.0%

Kamanahalli Main

Road150 25 27 0.0% 3.4%

HSR Layout 27th

Main140 24 25 0.0% 0.0%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Koramangala 420 71 74 0.0% 0.0%

Magrath Road 375 63 66 0.0% 0.0%

Cunningham Road 90 15 16 0.0% 0.0%

Mysore Road 65 11 11 0.0% 0.0%

Vittal Mallya Road 400 68 71 0.0% 0.0%

Whitefield 120 20 21 0.0% 0.0%

Rajarajeshwarinagar 80 14 14 0.0% 0.0%

Malleswaram 280 47 50 0.0% 0.0%

Bannerghatta Road 195 33 34 0.0% 0.0%

Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is

quoted


Retail Snapshot Q4 2016BENGALURU, INDIA

MARKETBEAT









Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered


Siddhart GoelSenior Director


Tel: +91 80 40465555

[email protected]

OutlookNew mall supply expected to increase vacancy. Three malls

totaling approximately 1.5 msf of space are expected to become

operational over the next two quarters. Although, these will lead

to a marginal increase in overall vacancy, rentals will not be

impacted directly.

Rental renegotiation in high streets expected. Sales of luxury

items have been impacted due to the recent demonetization,

citing which retailers may push for a renegotiation of rentals in

high streets over the next few months.



RMZ Galleria Yelahanka 500,000 Q1 2017

Vega City MallBannerghatta

Road420,000 Q2 2017

Forum

ShantiniketanWhitefield 600,000 Q2 2017



Virginia Mall Varthur Road Pantaloons 6,000

Virginia Mall Varthur Road Paradise Biriyani 5,000

Independent Jayanagar Lalitha Jewellery 12,000

Retail Snapshot Q4 2016CHENNAI, INDIA

MARKETBEAT




















Retail Market OverviewLack of supply and steady momentum in leasing brings

down vacancy rate. The city did not witness any new mall

supply during the fourth quarter as the approximately 0.9 million

square feet (msf) scheduled for completion in the current quarter

was deferred to 2017. Malls witnessed steady leasing during the

quarter led by apparels, food & beverage (F&B) and computer

hardware segments. Therefore, the vacancy level declined by

0.7 percentage point to 7.6% at the end of the quarter. Leading

international retailer, H&M, leased space in one of the prominent

malls in the CBD. The Chocolate Room and Acer were some of

the other brands that took up spaces in malls during the quarter.

Apparel, accessories and electronics retailers drove

demand for space in main streets. Main street locations of

Velachery and Anna Nagar observed robust leasing, primarily by

domestic brands such as Reliance Digital, Reliance Trends,

Lenskart, Sting, and Limelite.

Mall and main street rentals remained unchanged. Mall and

main street rentals remained stable owing to limited leasing

activity amidst low availability of quality spaces.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%





MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Nungambakkam

High Road150 25 27 0.0% 0.0%

Khadar Nawaz

Khan Road210 36 37 0.0% 0.0%

Cathedral Road –

R.K. Salai160 27 28 0.0% 7.0%

Usman Road -

South130 22 23 0.0% 0.0%

Usman Road -

North140 24 25 0.0% 0.0%

Adyar Main Road 150 25 27 0.0% -6.0%

Anna Nagar 2nd

Avenue150 25 27 0.0% 0.0%

Purasawalkam High

Road130 22 23 0.0% 0.0%

Pondy Bazar 160 27 28 0.0% 0.0%

Velachery 130 22 23 0.0% 0.0%

Ambattur (MTH

Road)*120 20 21 0.0% 0.0%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Chennai – CBD** 345 58 61 0.0% 0.0%

Chennai –

Western**300 51 53 0.0% 0.0%

Chennai – South** 330 56 58 0.0% 0.0%



*Newly Added in 2015

**Select shopping malls have been considered for calculation of malls rentals. Luxury spaces

not included

Retail Snapshot Q4 2016CHENNAI, INDIA

MARKETBEAT











Siddhart GoelSenior Director Research Services, India

Tel: +91 80 40465555

[email protected]

OutlookNew mall space expected to be added in next quarter. The

market is likely to witness addition of approximately 0.5 msf of new

mall supply in the next quarter in Velachery. With this, new supply

will be seen in the city after a gap of 12 quarters. Addition of higher

supply in the subsequent quarters, primarily in the peripheral

locations, will drive the overall vacancy upwards. Mall rentals are

likely to remain range-bound due to steady demand by retailers.SIGNIFICANT PROJECTS UNDER CONSTRUCTION


The Palladium Velachery 250,000 Q1 2017

Ozone

Metrozone Mall

Anna Nagar 1,000,000 Q2 2017



Express Avenue Royapettah H&M 34,000

Independent Building VelacheryReliance

Digital8,000

Retail Snapshot Q4 2016DELHI-NCR, INDIA

MARKETBEAT




















Market OverviewVacancy declines, no new supply infusion. Steady leasing by

retailers amidst no new supply led to vacancy rate declining to

16% at the end of the quarter. Apparel and home décor retailers

dominated leasing activity in malls with brands such as Yepme,

Armani Exchange, Madame, and Casa Pop actively leasing

space during the quarter.

Mall rents remained stable across most submarkets. Mall

rentals maintained status quo across all submarkets owing to

steady demand from retailers. Despite witnessing significant

interest from retailers, even prominent malls in South Delhi and

Noida did not witness any change in the ongoing market rentals.

Select main streets witness increase in rents. Most of the

main street locations witnessed stable rents during the quarter

owing to stable demand. However, DLF Galleria and Sector 29 in

Gurgaon witnessed an increase of 6-11% in rentals over the

previous quarter spurred by demand from retailers. Apparel, food

& beverage (F&B) and beauty and healthcare retailers such as

Kidsberry, Wrangler, Pantaloons, Keventers, Burger King, Taco

Bell, Geetanjali Salon leased retail space across main streets

during the quarter.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%



Source: Oxford Economics


MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Khan Market 1,250 212 221 0.0% 0.0%

South Extension I &

II700 118 124 0.0% -6.7%

Lajpat Nagar 250 42 44 0.0% 11.1%

Connaught Place 950 161 168 0.0% 11.7%

Greater Kailash I, M

Block460 78 81 0.0% -16.4%

Rajouri Garden 225 38 40 0.0% 12.5%

Punjabi Bagh 225 38 40 0.0% 12.5%

Karol Bagh 375 63 66 0.0% 0.0%

Kamla Nagar 400 68 71 0.0% 0.0%

Dwarka 450 76 80 0.0% 5.9%

Vikas Marg 175 30 31-

12.5%-12.5%

DLF Galleria

(Gurgaon)850 144 150 6.3% 13.3%

Sector 29 (Gurgaon) 250 42 44 11.1% 31.6%

Sector 18 (Noida) 200 34 35 0.0% -11.1%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

South Delhi 600 102 106 0.0% 20.0%

West Delhi 325 55 57 0.0% 0.0%

Gurgaon 375 63 66 0.0% 0.0%

Noida 380 64 67 0.0% 0.0%

Greater Noida 125 21 22 0.0% 0.0%

Ghaziabad 200 34 35 0.0% 0.0%



Retail Snapshot Q4 2016DELHI-NCR, INDIA

MARKETBEAT












Tel: +91 80 40465555

[email protected]

OutlookAbout one million square feet mall space expected to be

added in 2017. One mall each in Greater Noida and New Delhi

are likely to become operational during the first half of 2017.

Despite the new supply expected, mall rentals are expected to

maintain status-quo in the next quarter owing to stable demand.

Main street rents likely to maintain status quo. Rentals for

most main streets are expected to remain range-bound, except

for pockets in Gurgaon, like Sector 29, which might witness a

slight surge in rentals, led by continued interest from retailers

coupled with limited availability of quality retail spaces.



Omaxe Connaught

PlaceGreater Noida 850,000 Q1 2017



Mall of India Noida Yepme 7,600

Standalone Punjabi Bagh Geetanjali Salon 3,000

Standalone Connaught Place Skechers 2,800

Select City Walk SaketArmani

Exchange1,720

Retail Snapshot Q4 2016HYDERABAD, INDIA

MARKETBEAT


Economy

The GDP growth of India for the July-September quarter was

recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a

short-term blip caused by the recent currency demonetization, a

normal monsoon season and impending pay hikes for government

employees are likely to spur a recovery in consumer sentiments. In

October, the Consumer Price Index (CPI), a key price indicator of the

Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% -

the lowest in 14 months – on the back of lower food inflation.

Consequently, there were expectations of a cut in the Repo Rate by

the RBI in its policy revision in December, which however, did not

take place given the slowdown in economic activity. According to the

2016 Global Retail Development Index, which ranks top 30

developing countries for retail investment worldwide, India has

jumped 13 positions from last year to rank 2nd. The organised retail

space (malls) in India has seen high investment activity this year as

investors are bullish about the prospects of this asset class, coupled

with the opportunity to list retail assets under REITs.

Retail Market Overview

No fresh mall supply during the quarter. Mall supply of nearly 1.5

msf, which was anticipated during the quarter, has been delayed by 6

to 12 months owing to construction delays. With this postponement,

the city has not witnessed any new mall supply for nine consecutive

quarters.

Vacancy rate increased marginally due to a churn in tenants.

Limited availability of quality space in malls led to subdued leasing

activity during the quarter. The overall vacancy rate increased

marginally to 4.6% at the end of the quarter, as a few retailers exited

prominent malls in Madhapur and Kukatpally submarkets.

Main streets are attracting higher leasing activity than malls. The

F&B sector accounted for the highest share in leasing in main streets,

drive-in formats and IT Parks during the quarter. Most of the F&B

retailers preferred standalone spaces on main streets with large

parking capacity, due to which, the main streets of Jubilee Hills,

Gachibowli and Kothaguda witnessed higher leasing activity during

the quarter. Some of the retailers that are expected to set up stores in

main streets include KFC, Buffalo Wild Wings, Mamagoto, etc.

Rentals continue to remain flat during the quarter. Limited

availability of quality space in malls led to subdued leasing in malls,

thereby keeping rentals flat during the quarter. Similarly, rentals

remained stable in main streets as leasing was stable.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%





MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

M.G. Road 110 19 19 0.0% 0.0%

S.P.

Road/Begumpet110 19 19 0.0% 0.0%

Raj Bhavan

Road/Somajiguda90 15 16 0.0% 0.0%

Banjara Hills 130 22 23 0.0% 0.0%

Abids 110 19 19 0.0% 0.0%

Himayathnagar 140 24 25 0.0% 0.0%

Punjagutta 155 26 27 0.0% 0.0%

Ameerpet 125 21 22 0.0% 0.0%

Jubilee Hills 125 21 22 0.0% 0.0%

Kukatpally NH.9 140 24 25 0.0% 0.0%

A.S. Rao Nagar 120 20 21 0.0% 0.0%

Madhapur 100 17 18 0.0% 0.0%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

NTR Gardens 100 17 18 0.0% 0.0%

Himayathnagar 150 25 27 0.0% 0.0%

Banjara Hills 260 44 46 0.0% 0.0%

Madhapur 235 40 42 0.0% 0.0%

Panjagutta 140 24 25 0.0% 0.0%

Somajiguda 120 20 21 0.0% 0.0%

Kukatpally 180 30 32 0.0% 0.0%



Retail Snapshot Q4 2016HYDERABAD, INDIA

MARKETBEAT













Tel: + 91 80 4046 5555

[email protected]

OutlookVacancy rate likely to be stable in the next quarter. No new

malls are expected to become operational in the next quarter.

The vacancy rate is, therefore, expected to be stable during Q1

2017.

Rental values expected to remain stable. Rentals in main

streets and malls have remained largely stable in the city over

the last two years. With moderate leasing activity and no supply

of malls, rentals are expected to remain flat in the next quarter

too.



Sattva Salarpuria

Food Court

Gachibowli 300,000 Q4 2017

Maruthi Infinity

Mall

Chandanagar 225,000 Q2 2017



Inorbit Mall Madhapur H&M 20,000

Kothaguda

Junction

Kothaguda Mamagoto

restaurant

17,000

Highstreet Jubilee Hills Road

no 36

Buffalo Wild

Wings

15,000

Retail Snapshot Q4 2016KOLKATA, INDIA

MARKETBEAT




















Market OverviewSteady demand coupled with no supply leads to decline in

vacancy. The city did not witness addition of any new mall

during the quarter. Overall vacancy reduced by 0.5 percentage

points and stood at 4.5% during the quarter due to moderate

leasing activity. Leasing activity in malls was driven by apparel

brands such as Arrow, Little Shop, Club SP (Satya Paul), Hush

Puppies and Spencers in the hyper-market category during the

quarter.

Mall rents across all submarkets maintained status quo.

Despite low availability, mall rentals across all submarkets

remained stable during the quarter as transactions were

executed at ongoing market rates. Malls witnessed an increase

in enquiries for large spaces by departmental stores, which were

planning to expand. However, these could not be executed due

to limited availability of such large spaces in malls in the city.

Main street rentals remained unchanged due to stable

demand. Designer apparels, as well as beauty & wellness

retailers such as Ritu Kumar and Cocktail Thai Spa were some

of the retailers that leased spaces at main streets of Ballygunge

and Elgin Road during the quarter.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%





MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Park Street 500 85 88 0.0% 0.0%

Camac Street 450 76 80 0.0% 0.0%

Lindsay Street 400 68 71 0.0% 0.0%

Elgin Road 320 54 57 0.0% 0.0%

Theatre Road 200 34 35 0.0% 0.0%

Gariahat 200 34 35 0.0% 0.0%

Shyambazar 140 24 25 0.0% 0.0%

Hatibagan 140 24 25 0.0% 0.0%

Kankurgachi 200 34 35 0.0% 0.0%

VIP Road 90 15 16 0.0% 0.0%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

South Kolkata 300 51 53 0.0% 0.0%

East Kolkata 400 68 71 0.0% 0.0%

Rajarhat 100 17 18 0.0% 0.0%

Elgin Road 600 102 106 0.0% 0.0%

Park Circus 600 102 106 0.0% 0.0%



Retail Snapshot Q4 2016KOLKATA, INDIA

MARKETBEAT











OutlookMall rentals likely to remain stable during the next quarter.

Mall rentals are expected to remain range-bound across

submarkets due to steady demand from retailers.

Development of a new mall in Dum Dum area of north Kolkata is

in the planning stage. Currently, Dum Dum does not have any

organized retail development.

Leasing in main street locations to drive retail leasing in the

next quarter. Retailers, especially in the F&B and apparel

categories, are likely to prefer main streets due to limited

availability of space in malls. However, rentals are likely to

maintain status quo in the next quarter, due to adequate

availability of space in main streets.

SIGNIFICANT PROJECTS UNDER CONSTRUCTION


Downtown Rajarhat 300,000 Q2 2017

V Mall Rajarhat 300,000 Q1 2018



Acropolis Mall Rajdanga Main Rd Spencers 9,000

Acropolis Mall Rajdanga Main Rd Time Zone 6,500

Mani Square EM Bypass Arrow 1,200

Standalone Elgin Road Ritu Kumar 1,500


Tel: +91 80 40465555

[email protected]

Retail Snapshot Q4 2016MUMBAI, INDIA

MARKETBEAT



recorded at 7.3%, up from 7.1% in the preceding quarter. Despite

a short-term blip caused by the recent currency demonetization, a

normal monsoon season and impending pay hikes for

government employees are likely to spur a recovery in consumer

sentiments. In October, the Consumer Price Index (CPI), a key

price indicator of the Reserve Bank of India (RBI) for policy

purposes, was seen at 4.2% - the lowest in 14 months – on the

back of lower food inflation. Consequently, there were










Market OverviewMarginal dip in mall vacancies with no supply addition. The

quarter did not witness any fresh mall supply, after supply infusion

of nearly 0.9 msf, over the last two quarters. However, overall

mall vacancy for the city declined marginally and stood at 16.2%

at the end of the quarter, on the back of limited leasing activity

confined to select submarkets of Kurla and Kandivali.

International apparel and fashion accessories retailers such as

Forever 21, Sephora, etc. continued to expand their footprint in

malls.

Main streets remain active. The main streets of Lower Parel,

Bandra-Kurla Complex (BKC) and Linking Road witnessed active

leasing from retailers in the F&B and apparel segments. Some of

the prominent F&B outlets that opened during the quarter include

Mr.Baozi (Juhu and Lower Parel) and Beer Café (Lower Parel).

Rental values largely remained stable across most malls and

main streets. Owing to sufficient availability of space in existing

malls, rental values remained stable across most of malls during

the fourth quarter. Rental values declined by 2-3% on the main

street of Colaba Causeway as landlords closed deals at lower

than average market rates (as demand dipped post the recent

demonetisation move). Rentals across other prominent main

streets remained stable owing to steady demand.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%





MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Linking Road 760 129 134 0.0% 1.3%

Kemps Corner/

Breach Candy430 73 76 0.0% 1.2%

Colaba

Causeway620 105 110 -2.4% 3.3%

Fort Fountain 385 65 68 0.0% 10.0%

Lokhandwala

Andheri400 68 71 0.0% 0.0%

Borivali LT Road 400 68 71 0.0% 0.0%

Chembur 375 63 66 0.0% 0.0%

Vashi 350 59 62 0.0% 0.0%

Thane 250 42 44 0.0% 0.0%

Malls

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Lower Parel 820 139 145 0.0% 2.5%

Link Road

(Andheri W)400 68 71 0.0% 0.0%

Malad 460 81 78 0.0% 0.0%

Goregaon 460 81 78 0.0% 2.2%

Kandivali* 200 35 34 0.0% 0.0%

Kurla* 190 34 32 0.0% 2.7%

Ghatkopar 300 53 51 0.0% 0.0%

Bhandup-Mulund 140 25 24 0.0% -3.4%

Vashi 350 62 59 0.0% 0.0%

Thane 260 46 44 0.0% 0.0%



*Newly Added in 2015

Retail Snapshot Q4 2016MUMBAI, INDIA

MARKETBEAT













Tel: +91 80 40465555

[email protected]

OutlookLeasing activity to rebound. Leasing activity is expected to

pick up pace in malls with expected entry/ expansion of lifestyle

retailers. At the same time, F&B players are expected to continue

leasing in select main streets of Kamala Mills and Linking Road.

Mall and main street rentals to remain largely range-bound.

Rental values across most malls and main streets are expected

to remain stable in the first quarter of 2017. Malls in Lower Parel

and main streets of Fort / Fountain and Linking Road would

continue to be the preferred locations amongst international

retailers.



Grand Central Seawoods Navi

Mumbai

1,100,000 Q1 2017

Reliance Mall Bandra Kurla

Complex (BKC)

300,000 Q4 2017



Phoenix Market City Kurla Forever 21 10,000

Growel Mall Kandivali Croma 10,000

Individual Property Fort Adidas 4,000

Retail Snapshot Q4 2016PUNE, INDIA

MARKETBEAT




















Market OverviewLimited leasing activity in malls; marginal decline in

vacancy levels. The quarter was marked by limited leasing

activity, with leasing concentrated in malls in Koregaon Park and

Hadapsar. The leasing activity was dominated by food &

beverage (F&B) retailers with brands such as Subway and

Burger King expanding their footprint in the city. Amidst no fresh

supply and subdued leasing, vacancy rate declined marginally to

19.5% at the end of December 2016.

Mall rentals remained consistent. Mall rental values remained

stable during the quarter due to sluggish leasing activity and

sufficient availability in existing stock.

Moderate leasing activity in main streets; rental values

remained stable. Moderate leasing activity was witnessed in

prime main streets at F.C. Road and M.G. Road, driven by F&B

and lifestyle retailers. Rental values across all main street

locations maintained their status quo except in Aundh, where

they corrected by 3% quarter-on-quarter (q-o-q) due to

competitive pressure from a recently launched mall in the vicinity.

ECONOMIC INDICATORS

National 2014 2015 2016F

GDP Growth 7.0% 7.2% 7.5%

CPI Growth 6.6% 4.9% 5.4%





MAIN STREETS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

M.G. Road 320 54 57 0.0% 0.0%

J.M. Road 370 63 65 0.0% 0.0%

F.C. Road 250 42 44 0.0% 0.0%

Koregaon Park 120 20 21 0.0% 0.0%

Aundh 165 28 29 -2.9% -8.3%

Bund Garden Rd 140 24 25 0.0% 0.0%

Mumbai-Pune

Highway –

PCMC

120 20 21 0.0% 4.3%

MALLS

INR

SF/MTH

EURO

SF/YR

US$

SF/YR

Q-O-Q

Change

Y-O-Y

Change

Camp 215 36 38 0.0% 0.0%

Koregaon Park 135 23 24 0.0% 0.0%

Nagar Road 250 42 44 0.0% 0.0%

Hadapsar 180 30 32 0.0% 0.0%

PCMC

Aundh*

190

230

32

39

34

41

0.0%

0.0%

0.0%

NA



PCMC denotes Pimpri Chinchwad Municipal Corporation

*Newly added in Q2 2016

Retail Snapshot Q4 2016PUNE, INDIA

MARKETBEAT











Siddhart Goel

Senior Director


Tel: +91 80 40465555

[email protected]

OutlookLeasing activity in malls expected to strengthen; rentals

anticipated to appreciate in select submarkets. Owing to

increased enquiries from lifestyle retailers for space in malls in

Aundh, leasing activity is expected to strengthen during the

upcoming quarter. Hence, Aundh may witness slight appreciation

in mall rental values. However, rental values in all other

submarkets are expected to remain stable.

Main street rentals likely to soften at select submarkets. Main

street rentals at Aundh are likely to soften in the upcoming quarter

owing to competitive pressure from malls in the submarket.

Rentals in all other main street locations are expected to remain

consistent.



My MallSenapati

Bapat Rd350,000 Q3 2017

Elpro Mall PCMC 400,000 Q1 2018



Standalone Building F.C. Road Pizza Hut 3,000

Amanora Town

Centre MallHadapsar Burger King 2,500

retail snapshot q4 2016 - cushwakeasia.com...retail snapshot q4 2016 chennai, india marketbeat...

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