A study by Cushman & Wakefield, a real state leasing study states that the overall mall vacancy rate declined marginally (by 0.05 percentage points) because of moderate leasing activity. Apparel and lifestyle retailers like Pantaloons, Skechers, Planet Fashion, Blackberrys, Decathalon and Geetanjali Salon were the key occupiers of mall spaces.
Rise in Rents for Select Main Streets
Select main streets such as Khan Market, Connaught Place, DLF Galleria, and Sector 29 in Gurugram showed an increase in rents of between 3% and 5% during the quarter, owing to the higher traction witnessed in these micro-markets. Mall rents remained stable across all submarkets because of steady demand and adequate availability of space.
Food and Beverage Outlets and Apparel Retailers Led Transaction Activity in Main Streets
Food and beverage outlets and apparel retailers drove the demand for main street retail spaces during the quarter. Brands like Domino’s, Theobroma, Brew Buddy, The Classroom, Westside, Fabindia, Lakshita, and The Raymond Shop were prominent new occupiers in the main streets. The trend of online retailers opening offline stores in malls and main streets continued as they aim to widen their customer bases. Following the lead of apparel and fashion brands, a smartphone maker (Mi) has also ventured into this model.