CBRE_India Retail Report _H2 2010

8/6/2019 CBRE_India Retail Report _H2 2010

1/12

2010, CB Richard Ellis, Inc.

www.cbre.co.in July - December 2010

India Retail

The second half of 2010 has been an exciting one for the

retail industry with an increased momentum in transaction

activity amidst surging retailer interest. Various established

brands and other national or international retailers

continued with their renewed expansion plans across the

country. A positive economic outlook, surging consumer

confidence and spending helped the market maintain its

pace of recovery from the downturn.

India witnessed the addition of more than 5 million sq

ft of organised retail mall space in the country across

various primary and secondary locations in the year 2010.

This was concentrated largely in the National Capital

Region, Mumbai, Bangalore and Chennai. This supply is a

consequence of the positive sentiments amongst retailers

on spatial expansion and enhancing their footprint across

the country. Pre-commitments in under construction assets

in prime locations is also an encouraging sign. Rental

flexibility, along with the minimum guarantee coupled

with revenue share model has become more acceptable

in the industry. With their mall developments in advanced

stages of construction, developers had to ward off vacancy

pressures by providing a more accommodative view of

sharing revenues with the retailers. This approach has

reduced vacancy pressures in various malls, thereby

providing floor earnings to developers. Developers and

retailers are also working towards looking to partner each

others success.

In all the seven cities presented in this review the retail

real estate market appears to be promising with an

appreciable increase in enquiries being witnessed from

retailers. Moving ahead, transaction activity and size are

expected to increase on the back of increase in consumer

spending and expanding mid income purchasing power.

However, despite this incremental demand, retail mall

supply pipeline is very large, especially in leading cities like

NCR, Mumbai, Bangalore, Pune and Chennai. This would

ensure that pressures remain on developers to offer rental

discounts and transaction flexibility to avoid higher vacancy

levels in the long term. While the prime destinations will

continue to be high in demand and also witness an upward

rental movement on account of developer expectations, it

would largely be the secondary locations in these cities

which will bear the brunt of large supply influx in the next

two years.

Whilst the retail landscape of India appears dynamic and

is continuously evolving, it is imperative for retailers and

developers to increasingly cooperate and adopt practices

aimed at improving footfalls and conversion ratios in

mall properties. This can be handled by efficient mall-

management practices, more efficient mall design layouts

and tenant profiling approaches, to establish specific zones

for varying target customer groups, all of which contribute

towards attracting footfalls. It is also anticipated that foreign

direct investment in multi brand retail will open up new

opportunities for the industry and leading developers. India

being the fifth largest retail market in the world has been

the focus of global expansion plans of various international

retailers, which have been targeting the BRIC (Brazil,

Russia, India and China) consumer base as their core area

of interest. This position is expected to continue in the near

future as well, with organised retail segment expanding its

footprint across the country.


2/12

Page 2

2010, CB Richard Ellis, Inc.July-Decemb

er2010

MAJOR LEASING TRANSACTIONS

District Property Size (sq ft) Tenant

Delhi G 24, South

Extension - I

950 Calvin Klein

Jeans

Noida G - 75, Great IndiaPlace Mall,

Sector 38 (A)

1,200 Energie

Gurgaon Anchor Area - I,

MGF MetropolisMall, MG Road

80,000 Lifestyle

NATIONAL CAPITAL REGION (NCR)

Market Summary

The retail market has demonstrated signs of buoyancy

in the second half of 2010. With increase in hiring,

income levels and an overall feel good factor in the

economy, the mood in the market remains upbeat.

This has further been aided by the festive season and

a sustained influx of new brands over the past few

months in the NCR, resulting in the industry gaining

further momentum.

A slew of international brands have set up shop in

the country, and a further set of brands are evaluating

strategies for market entry in the coming quarters.

Prominent brands that have launched their flagship

stores in the last few months include European labels

like Jack & Jones and Vero Moda, American outdoor

footwear brand Timberland and Casual Diner Chilis,

youth fashion brands like Forever 21, Diesel and Ecko

Unlimited along with skincare specialist Kiehls.

After a successful stint in Southern India, the Australian

caf chain Gloria Jeans launched its first set of

outlets in North India. In addition, the homegrown high

end fashion destination The Collective made its much

hyped debut in the NCR market. Even large format

retailers like Lifestyle and Funcity opened their first

outlets in South Delhi and others such as Shoppers

Stop, Pantaloons and Marks & Spencers have

strengthened their footprint within micro market. The

initial response to the entry of above brands has been

encouraging, and has generated footfalls in major mall

properties or high street locations where these brands

have opened shop. The market confidence amongst

these brands and other retailers is also evident from

their commitment to evaluate additional retail space

in upcoming developments to expand their footprint

in the region.

On the supply side, operational Grade A Malls in the

NCR market, located in Saket and Vasant Kunj as well

as prominent developments in West Delhi, continued

to observe near full occupancy rates. Meanwhile,

Grade B high street locations and malls, especially

in the suburbs continued to experience sustained

corrections and vacancy rates. The next few quarters

will also aid fresh supply with the launch of few

projects in West Delhi, Gurgaon and Ghaziabad.

With quality real estate in the prime markets/malls

getting saturated, an emerging trend amongst

larger retail formats has been to start exploring

developments in suburbs and pre-committing space

in upcoming developments. Upcoming projects in

Gurgaon and Noida are mostly being transacted on a

lease only model. The same has encouraged retailers

like hypermarkets, F&B stores, departmental stores,

multiplex chains and FECs to start committing spaces

in these developments.

Rental Trends

Compared to the first half of 2010, rental values

increased by almost 9 11% in the high street

location of Khan Market, while remaining stable in

locations such as Connaught Place and Basant Lok.

In the organised segment, retail rentals appreciated

by almost 15 - 20% in Saket District Centre and by

almost 10 - 15% in Vasant Kunj. However, rentals in

malls in Gurgaon and Noida remained stable, due to

substantial supply pipeline against an appreciating

demand. The minimum guarantee and revenue

share model (limited to malls only) appears to be fast

becoming the norm with established retailers and

developers, providing a win-win situation for both.


3/12

Page 3


IndiaR

etail

July-D

ecember2010

MUMBAI

Market Summary

Steady growth has been observed in the supply of

quality retail spaces in Mumbai, with many international

brands setting up operations in new malls. Stabilized

rental values coupled with an increasing consumer

confidence and spending pattern has resulted in

retailers moving back to mall spaces, open more

stores and revisit their expansion plans.

Palladium at High Street Phoenix, a premium project

which became operational in 2009, witnessed some

prominent global brands like Armani (Emporio

Armani), Zara, Burberry, Etro and Clarins, opening

their first / flagship stores in the city. R-City Centre

(Phase-I) in the Eastern Suburbs of Mumbai also saw

increasing occupancy levels with the new stores like

Jammin, Mother Earth, amongst others. With Phase -

1 of the mall fully operational, footfalls have increased

significantly and the project has now become a popular

retail destination in the eastern suburbs of the city.

High street destinations of Mumbai such as Linking

Road observed the opening of few new stores such

as Jack & Jones, Only, Vero Moda, sports brands

such as Nike and Adidas. In addition to these, Tata

International launched Tashi, flagship store of their

footwear and accessories brand. First flagship stores

of new brands such as Bombay High, OVS are

expected to be operational in the first quarter of 2011.

0

50

100

150

200

250

300

H1 2009 H2 2009 H1 2010 H2 2010

Rentals(INR/sqft/month)

Saket District Centre Vasant Kunj Noida Gurgaon

Outlook

Going forward, the outlook for the retail real

estate market appears optimistic, with the

upcoming launches of premium developments

in the NCR. Grade A projects are expected to

continue witnessing high occupancy rates,

ORGANISED RETAIL RENTALS

Mall Clusters Average rental

(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Saket DistrictCentre

250 - 350 150 - 350

Vasant Kunj 175 - 275 150 - 250

Noida 150 - 250 150 - 250

Gurgaon 100 - 200 100 - 200

Mall Clusters

HIGH STREET RENTALS

High StreetDestinations

Average rental

(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Khan Market 1000 - 1200 900 - 1100

SouthExtension

550 - 750 500 - 700

Basant Lok 250 - 350 250 - 350ConnaughtPlace

500 - 700 500 - 700

0

200

400

600

800

1000

1200

H1 2009 H2 2009 H1 2010 H2 2010


Khan market South Extension Basant Lok Connaught Place

High Streets

while further vacancies are expected across

Grade B markets and malls. Additionally, the

proposed fresh real estate supply in Gurgaon,

Ghaziabad and Noida appears to be the next

line of growth for large format retailers. Large

retailers are likely to continue exploring space

options and booking spaces in such futuristic

projects.


4/12

Page 4


er2010

BANGALORE

Market Summary

Bangalores retail market continued to gather

momentum with retailers expanding across all the

micro markets in the second half of the year. The city

witnessed larger space take ups by retailers in malls

that are under construction and are expected to get

operational in 2011. With more than 4 million sq ft

of mall space coming into the market next year, this

segment is expected to witness maximum activity.

The major high street areas like MG Road, Commercial

Street, 100 Feet Road, Indiranagar, 80 Feet Road,

Koramangala and Jayanagar 4th Block continued to

remain the preferred choice for existing retailers and

new entrants. Across major categories, retailers like

Helios, Titan, Only, Jack & Jones, Celio, Reid & Taylor,

Triumph, Guess, The Body Shop, Reliance Digital and

Reliance Jewels continued to expand their footprint

in these key micro markets. Additionally, F&B players

like 1947, Sunnys, Caff Pascucci, Matteo Coffea,

Outlook

Retailers continued to enquire for space

in Grade A projects and prime high street

locations. The high street locations continued

to command a premium due to scarcity of

supply. While approximately 4.1 million sq ft

of supply is expected to enter the market in

2011, a number of prominent national and

international brands have already pre-leased

space in these malls. These include Infinity

Megamall at Malad in the Western suburbs

and R-City Centre Phase-II, Ghatkopar, Market

City in Kurla and Nirmal Lifestyle Phase- II in

the Eastern suburbs.

HIGH STREET RENTALS

High Street Average rental

(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Linking Road 650 - 800 650 - 800

Colaba Causeway 400 - 450 400 - 500

Kemps Corner 400 - 450 400 - 500



(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Central Mumbai 300 - 425 250 - 300

Western Suburbs 180 - 250 170 - 225

Eastern Suburbs 170 - 200 150 - 180

0

100

200

300

400

500

600

700

800

H1 2009 H2 2009 H1 2010 H2 2010


Linking Road Colaba Causeway Kemps Corner

0

50

100

150

200

250

300

350

400

H1 2009 H2 2009 H1 2010 H2 2010


Central Mumbai Western Suburbs Eastern Suburbs

Mall Clusters

High Streets



Linking Road Bawa Suites 1,800 Tashi

KempsCorner

LitolierShowroom

(Doctor Center)

2,000 ICICI Bank

Linking Road Dev Niburu 5,000 Bombay High

Linking Road DLH 14,000 Jack & Jones/ Only/ Vero

Moda

Rental Trends

Increasing demand and limited supply led to a

significant rise in rental values in malls across the city.

As compared to the first half of 2010, mall rental values

in Central Mumbai increased by almost 40 - 45%,

followed by Western Suburbs (24 - 26%) and Eastern

Suburbs (14 -15%). Mall developers continued to work

on the minimum guarantee/revenue share model with

retailers, whereas high street landlords still prefer the

flat rental models. The rental values in the high street

location of Linking Road appreciated by almost 45%

compared to last year.


5/12

Page 5


IndiaR

etail

July-D

ecember2010

HIGH STREET RENTALS

High Street Average rental(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

CommercialStreet

200 - 240 190 - 230

Brigade Road 225 - 275 200 - 250

Jayanagar 11th

Main, 4th Block

140 - 160 140 - 160

100 Feet Road,Indiranagar

120 - 140 110 - 130



(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

CBD -NorthBangalore

130 - 150 120 - 140

South Bangalore(Koramangala/Jayanagar)

70 - 90 60 - 80

East Bangalore

(Airport Road,Ulsoor)

70 - 80 60 - 75

McDonalds, KFC, Taco Bell, TGIF and Man U Caf

increased their presence by opening new outlets in

the city while new international players like Sky Bar

and Haagen Dazs are drafting plans of making an

entry into the Bangalore market next year.

Hypermarkets also witnessed a rapid expansion with

retailers taking up large spaces across key markets.

These include HyperCITY (leasing 72,000 sq ft on

Bannerghatta Road), Total (142,000 sq ft on the Outer

Ring Road), D-Mart (22,000 sq ft in Jayanagar) and

More Megastore (40,000 sq ft on Old Madras Road

and 65,000 sq ft in JP Nagar), respectively.

Almost ten malls being constructed across various

micro markets including Yeshwantpur, Outer Ring

Road, Whitefield and Bannerghatta Road are expected

to become operational in 2011. New retailers that

would be setting up shop next year include the likes

of S.Oliver, ZARA, Debenhams, Blu-O, DLF Home,

Cocoberry, IZOD, GANT and Jumbo Electronics.

Additionally, established retailers have also started

showcasing interest in properties located close to the

Bangalore metro stations as well as New Airport Road

due to better footfalls.

Rental Trends

Rental values witnessed an increase in both high

street locations as well as mall clusters. Rental trends

are in continuance with the patterns of the first half of

2010 with established and emerging retailers leasing

out spaces in the key markets. Premium high street

properties continue to be high in demand, wherein

landlords are able to command a certain leverage,

which forces retailers to accept even their high rental

expectations. Rental values in the high street areas

of Commercial Street increased by 4 - 5%, while the

same on Brigade Road increased by 10 - 12% from

first half of 2010. In the organised retail segment, the

South Bangalore micro market of Koramangala and

Jayanagar observed maximum increase in rentals (13

- 15%), followed by North Bangalore - CBD (7 - 8%)

and East Bangalore (8 - 11%).

0

20

40

60

80

100

120

140

H1 2009 H2 2009 H1 2010 H2 2010


CBD -North Bangalore South Bangalore - (Koramangala/

Jayanagar)

East Bangalore -( Airport Road, Ulsoor)

0

50

100

150

200

250

300

H1 2009 H2 2009 H1 2010 H2 2010


Commercial Street Brigade Road Jayanagar 11th Main 4th Block 100 Feet Road, Indiranagar



Lavelle Road #25/4, LavelleRoad

5,600 Tattva +Cloud Bar

MG Road #77 & #78, MGRoad

6,502 Titan

Mahadevpura Market City 20,000 ZARA

Yeshwantpur Orion Mall 20,000 ZARA

Assaye Road 1/3 Civil Station,Assaye Road

11,000 Body Craft

Mall Clusters

High Streets


6/12

Page 6


er2010

HIGH STREET RENTALS


(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

NungambakkamHigh Road

130 - 150 120 - 140

T Nagar PondyBazzar

140 - 150 130 - 150

Anna Nagar 2ndAvenue

90 - 110 90 - 110

Velachery 70 - 90 70 - 90

Adayar 110 - 150 110 - 140

Alwarpet 90 - 120 85 - 100

ORGANISED RETAIL


(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Spencer Plaza 130 - 150 150 - 200

Chennai CitiCenter

140 - 200 150 - 250

Ampa Mall 190 - 210 180 - 200

Express Avenue 210 - 230 190 - 210

CHENNAI

Market Summary

As compared to last year, the retail market in Chennai

witnessed significant improvement in demand and

supply situation. Developers are now complementing

this recovery by ensuring quicker delivery of projects.

However, various high street locations still face

a dearth of quality supply compared to the rising

demand in each micro market.

Two shopping malls, namely Express Avenue and

Ampa Skywalk both located in the Central Business

District (CBD) served as a platform for numerous

brands to establish their presence for the first time in

the city. Footfalls and revenue generation across all

formats in these malls has been substantial for various

retailers, thus paving the way for a large number of

premium and upmarket brands to take up space as

well.

Rental Trends

While rental values have remained stagnant in most

of the micro markets, there are few high streets like

Nungambakkam, Adyar and Alwarpet where a rental

improvement of 10 - 15% in the second half of 2010

has been witnessed.

The Chennai market witnessed improvement in supply

compared to last year which is expected to stabilize

retail rentals (especially in mall properties) in the long

run. Upcoming supply will help match rising demand

levels, thereby stabilising rental values. Already new

mall supply has resulted into a correction of 15 - 20%

in rental values of few existing malls. Rentals are

0

20

40

60

80

100

120

140

160

H1 2009 H2 2009 H1 2010 H2 2010

Rental(INR/sqft/month)

Nungambakkam High Road T Nagar - Pondy B azzar Anna Nagar - 2nd Avenue Velachery Adyar Alwarpet

High Streets


District Property Size (sqft)

Tenant

Chennai Express Avenue 50,000 Satyam Cinemas

Chennai Express Avenue 70,000 Big Bazaar

Chennai Express Avenue 75,000 Lifestyle

0

20

40

60

80

100

120

140

160

180

200

H1 2009 H2 2009 H1 2010 H2 2010


Spencer Plaza Chennai Citi Center Ampa Mall

Mall Clusters

Outlook

With more than forty new brands entering the city

next year, the market will be very buoyant with

their expanding footprint in various micro markets.

Retailers are very focused on the markets they

want to be in and developers/owners will workout best deals when the offering is unique and

beneficial.

expected to reduce further with more malls getting

operational in the coming few months.


7/12

Page 7


IndiaR

etail

July-D

ecember2010

HYDERABAD

Market Summary

During the second half of 2010 most of the developers

in Hyderabad reinitiated their construction plans which

were halted during the economic slowdown especially

in the Central Business District (CBD) of Jubilee Hills

Road No 36. Approximately 150,000 sq ft of retail

space is under construction and is expected to be

completed by Q1 2011.

Banjara Hills and Jubilee Hills witnessed maximum

market activity as they continued to remain the most

preferred micro markets for high-end retailers and new

entrants. During the second half of the year, Harley

Davidson opened its showroom in Banjara Hills Road

No. 2, while Diesel is likely to mark their presence

by January 2011 on the same stretch. In addition to

this, Jaguar Land Rover and Porsche opened their

showrooms in Jubilee Hills Road No. 36.

In the first half of 2011, almost one million sq ft of fresh

supply is expected to be introduced in the emerging

micro markets of LB Nagar, Vanasthalipuram, AS

Rao and Kukatpally. Prajay Princeton, spread over

150,000 sq ft and located in Vanasthalipuram is

expected to become operational by March 2011.

Bharti Walmart has pre-committed almost 60,000 sq ft

Outlook

Positive response received by two new

shopping malls in the city helped in boosting

the confidence of developers and retailers alike.

There are three large size destination malls

which are expected to hit the market before the

end of 2012, providing a great platform for both

the international and domestic retailers. With

abundant supply expected to hit the market in

next few years, the future of retail industry looks

optimistic.

in this development.

A total mall development of 1.2 million sq ft (a

cluster of 3-4 malls including the likes of Manjeera

Construction and Prestige Forum) is in the pipeline in

Kukatpally. This includes another large development

by Madhucon Group, at a spread of almost 700,000 sq

ft, also lined up in this micro market. However, these

projects are expected to become operational between

2012 - 2014.

At the same time, due to non availability of vacant land

parcels, very limited or no new supply is expected in

established micro markets like Banjara Hills Road No.

1, Himayath Nagar, Begumpet, Rajbhavan Road and

Panjagutta. Besides limited supply, the retailer churn

is also low in these micro markets.

Three new malls are coming up in Kondapur, namely

Skill Developers City Capital (800,000 sq ft), NCS

Delara Mall (Botanical Garden) (700,000 sq ft) and

SLN Terminus (175,000 sq ft).

Rental Trends

Banjara Hills and Jubilee Hills command the maximum

rental values as compared to the other micro markets,

largely due to their central location, very strong HNI

catchment and maximum footfalls. Compared to the

first half of 2010, rentals in Banjara Hills Road No

1 appreciated by almost 30 35%, while those in

Jubilee Hills Road No 36 increased by almost 18 -

20%. Old high streets like Himayathnagar observed

a 4 - 5% increase in rentals. However, in majority of

the mall properties rentals remained constant in the

review period.



Masab Tank(CBD)

StandAlone

10,000 RelianceTrends

Kukatpally(SBD)

StandAlone

10,000 RelianceDigital

Jubilee HillsCBD

StandAlone

20,000 StanleyBoutique


8/12

Page 8


er2010

PUNE

Market Summary

With stable economic conditions and renewed retailer

confidence, Pune witnessed hefty absorption of retail

space across all the high streets in the second half

of 2010. These included D-Mart which opened two

supermarkets at Baner and Kalyani Nagar, Pantaloons

acquired 65,000 sq ft at Senapati Bapat Road and

Star Bazaar opened a 55,000 sq ft hypermarket in

Pimpri Chinchwad. Major retailers also committed to

spaces in upcoming mall developments.

Besides hyper markets, large absorption was also

observed from banks for their retail branches. These

included IDBI taking up almost 17,000 sq ft at

University Road, Shivaji Nagar, Barclays acquiring

10,000 sq ft at Bund Garden Road and Citibank with

30,000 sq ft at Koregaon Park.

During the second half of 2010, R Deccan Mall at a

spread of almost 100,000 sq ft became operational

along JM Road. Currently, the vacancy in this mall

stands at almost 40%.

Rental Trends

Renewed interest from retailers coupled with scarcity

of supply led to a significant rise in the rental values

across the major high streets like MG Road (20 -

25%) and JM Road (12 - 15%). However, the rentals

at Aundh and Koregaon Park remained stable due to

additional supply that is likely to become available in

the coming quarters.

As compared to first half of 2010, mall rental values

remained stable across all micro markets. However

with large mall supply across the eastern corridor,

downward pressures might exist on rental values in

the coming months.

HIGH STREET RENTALS


(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)INR/sq ft/month

Himayathnagar 105 - 115 100 - 110

Jubilee Hills RoadNo 36

120 - 140 100 - 115

Banjara Hills RoadNo 1

110 - 130 80 - 95

ORGANISED RETAIL


(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Banjara Hills RoadNos. 1, 2 & 12

60 - 70 60 - 70

Outlook

The retail market in Hyderabad is likely to

observe a surge in market activities in the short

to medium term especially in the organised

segment. Retailers have been taking up space

in three under construction malls in Kukatpally,

namely Manjeera Trinity, Prestige Forum and

NSLs unnamed project. The leasing activity is

expected to pace up in the next 6 months.

0

10

20

30

40

50

60

70

80

H1 2009 H2 2009 H1 2010 H2 2010


Banjara Hills Road Nos. 1, 2 & 12

0

20

40

60

80

100

120

140

H1 2009 H2 2009 H1 2010 H2 2010


H im aya t na ga r Jubi le e H il ls R oa d N o 36 B anj ara H il ls R oa d N o 1

Mall Clusters

High Streets

Due to increase in demand levels in the

hypermarket format, leasing activities might

also observe an upward trend in the high streets

and high density catchment areas.


9/12

Page 9


IndiaR

etail

July-D

ecember2010

KOLKATA

Market Summary

The retail real estate in Kolkata witnessed increased

leasing activity towards the second half of the year.

Traditional prime retail high street locations such as

Park Street, Camac Street, Elgin Road and Theatre

Road remained inactive through all quarters of

2010, due to paucity of quality supply and unviable

commercials terms. There were a few small ticket

retail transactions in secondary markets such as

Gariahat and VIP Road. Some premium brands also

explored options in up market residential areas such

as Alipore to tap the target clientele without incurringheavy rentals at prime retail high street locations.

Forum Courtyard, an extension of the existing Forum

Mall on Elgin Road commenced operations in the third

quarter of 2010. The mall added another 40,000 sq ft

of prime retail space to the retail stock and introduced

flagship stores of various premium international

brands in the city. Some of the leading brands that

ventured into the Kolkata market are Mango, Promod,

Charles & Keith, Aldo, Alcott, Boggi, Mothercare and

Sunglass Hut. In addition to this, Espirit, Vero Moda

and Jack & Jones opened stores at South City Mall on

Prince Anwar Shah Road.

Vacancy levels remained stable for retail high streets

across various micro markets in Kolkata. Vacancy

levels for prime city and secondary micro market malls

came down marginally. With South City Mall and Forum

ORGANISED RETAIL

Mall Clusters Average rental(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

MG Road 200 - 250 200 - 250

Ganeshkhind Road 100 - 140 100 - 140

Nagar Road 120 - 160 120 - 160

Koregaon Park/Bund Garden Road

130 - 170 130 - 170

HIGH STREET RENTALS


(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

MG Road 225 - 250 180 - 200

JM Road 225 - 275 200 - 240

Aundh 100 - 150 100 - 150

Koregaon Park 100 - 150 100 - 150

0

50

100

150

200

250

300

350

H1 2009 H2 2009 H1 2010 H2 2010


MG Road Ganeshkhind Road Nagar Road Koregaon Park/

Bund Garden Road

Mall Clusters



Baner AmarMegaplex

23,000 D Mart

PimpriChinchwad

Standalone 55,000 Star Bazaar

SenapatiBapat Road

ICCTechpark

65,000 Pantaloons

Outlook

The organised retail market in Pune is ready

to re-define the shopping experience in the

coming months. Pune will witness close to 4.6

million sq ft of Grade A mall supply becoming

operational. The upcoming malls will be thegateway to many new retailers like Zara, PVR,

Cinepolis and Cinemax entering Pune for the

first time over the next few quarters.

0

50

100

150

200

250

H1 2009 H2 2009 H1 2010 H2 2010


High Streets


10/12

Page 10


er2010

Courtyard experiencing leasing activity, vacancy levels

declined marginally to 5% in the second half of 2010,

from 7% in the first half. Vacancy for malls in secondary

micro markets of Kolkata also dipped slightly from 14%

to 12%, following some leasing uptake.

In the secondary micro markets, City Centre 2 and

Axis Mall witnessed maximum leasing activity, with

Spencer Hypermarket committing almost 25,000 sq ft

of retail space in Axis Mall.

New retail developments are expected in the secondary

micro markets of Kolkata over the coming quarters.

Significant developments include the Diamond Plaza

on Jessore Road and Lake Mall at Lake Market. These

two malls are expected to add almost 500,000 sq ft

to the retail stock of the city. Other developments

expected towards the outskirts of the city are RainbowMall in Narendrapur and Avani Riverside in Howrah,

expected to be completed in the first quarter of 2011.

Rental trends

On account of limited supply, rental values witnessed

an upward spike in most of the high street locations.

Malls such as Forum and South City witnessed an

appreciation in rentals of up to 5% in the second half

of 2010. In the organised retail segments, the rentals

in EM Bypass increased by 14-16%. Rental values

remained stagnant in the Salt lake area.



ElginRoad

ForumCourtyard

3,000 Major Brands(Mango &Promod)

Jadavpur South CityMall

5,000 Bestseller Brands(Vero Moda and

Jack & Jones)Rajarhat Axis Mall 25,000 Spencers

Outlook

With new retail developments expected to come

in the first half of 2011 and churning in existing

malls, there would be a steady supply of

organised retail space in the market. This might

lead to an increase in vacancy levels over the

next two quarters. Though pre-leasing activity

has been steady across new malls as well,

significant retailer interest still remains vested

for South City Mall and Forum Courtyard, as

they represent quality retail developments with

dedicated catchment. However, with the Kolkata

market being relatively untapped for various

brands, leasing activity across all micro markets

is expected to pick up towards the end of the

second and third quarters of 2011.

Rental values are expected to remain steady

for high streets with little churn. Rental values

at prime city malls are expected to increase as

they remain the preferred option for all brands

entering the Kolkata market. For suburban

malls, a gradual rise is expected towards the

end of the third quarter of 2011.

ORGANISED RETAIL

MallClusters

Average rental

(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

EM Bypass 125 - 145 110 - 125

Salt Lake 240 - 250 240 - 250

Jadavpur 200 - 225 180 - 200

HIGH STREET RENTALS

High streets Average rental

(July Dec 10)

INR/sq ft/ month

Average rental

(Jan June 10)

INR/sq ft/month

Park Street 270 - 300 260 - 270

Elgin Road 175 - 200 145 - 155

Camac Street,

Shakespeare Sarani

175 - 190 120 - 140

0

50

100

150

200

250

300

H1 2009 H2 2009 H1 2010 H2 2010


Park St E lg in Road Camac Street, Shakespeare Sarani

High Streets

0

50

100

150

200

250

H1 2009 H2 2009 H1 2010 H2 2010


E M Bypass Salt Lake Jadavpur

Mall Clusters


11/12

Page 11


er2010

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500

company headquartered in Los Angeles, is the worlds largest commercial

real estate services firm (in terms of 2009 revenue). The Company has

approximately 29,000 employees (excluding affiliates), and serves real

estate owners, investors and occupiers through more than 300 offices

(excluding affiliates) worldwide. CB Richard Ellis offers strategic advice

and execution for property sales and leasing; corporate services; property,

facilities and project management; mortgage banking; appraisal and

valuation; development services; investment management; and research

and consulting. CB Richard Ellis has been named a BusinessWeek 50

best in class company for three years in a row. Please visit our website at

www.cbre.com

CB Richard Ellis was the first independent international Real Estate consulting

firm to set up office in the Indian sub continent. Over the last 15 years, the Indian

operations have grown to a network of offices in all the major metropolitan

cities. Today with over 1800 professionals, CB Richard Ellis is one of the

leading Real Estate consultants in the Indian subcontinent. Please visit us at

www.cbre.co.in

India Retail


12/12

July-December2010

INDIA OFFICES

New Delhi

CB Richard Ellis,

Ground Floor, PTI Building

4, Parliament Street,

New Delhi 110 001

T (91 11) 4249 0200 / 4239 0200

F (91 11) 2331 7670

Mumbai

CB Richard Ellis,

# 202/203, Level Two,

Naman Centre

Bandra-Kurla Complex,

Bandra (E), Mumbai- 400051

T (91 22) 40690100

F (91 22) 26527655

Chennai

CB Richard Ellis,

2C/2D, Gee Gee Emerald

151,VillageRoad, Nungambakkam

Chennai 600 034

T (91 44) 2821 4599 / 4571 / 4619

F (91 44) 2821 4607

Bangalore

CB Richard Ellis,

Hulkul Brigade Centre

Ground Floor, No. 82

Lavelle Road,

Bangalore 560 001

T (91 80) 40740000

F (91 80 ) 411 21239

Hyderabad

CB Richard Ellis,

211, 2nd Floor,

Maximus 2 B, Mindspace,

Cyberabad Madhapur,

Hyderabad 500081

T (91 40) 40335000

F (91 40) 40335050

Pune

CB Richard Ellis,

705/706, 7th Floor

Nucleus Church Road

Pune - 411001T (91 120) 26055437/ 367/397/

40190100

F (91 120) 26055405

Kolkata

CB Richard Ellis

Jindal Towers,

2nd Floor, Block B

21/1A/3, Darga Road

Kolkata 700017

T (91 33) 40190200

F (91 33) 40190230

Copyright 2010 CB Richard Ellis (CBRE).The information contained herein has been obtained from independent sources believed to bereliable and has not been verified for the possibility of errors, omissions, price change, rentalor other conditions, prior sale, lease or financing or withdrawal without notice. Any projections,opinions, assumptions or estimates included herein are solely for the purpose of illustration anddo not represent current or future performance or forecast of the property.CBRE does not make any representation, warranty including as to accuracy or completeness of theinformation and shall not be subject to any liability resulting from the use there from by any party.No one should proceed to act on such information without appropriate professional advice and afterconducting an independent and thorough investigation/diligence of the property and transaction.

Date post:	08-Apr-2018
Category:	Documents
Upload:	atia2k
View:	221 times
Download:	0 times

CBRE_India Retail Report _H2 2010

Documents