Home / Knowledge / News / Apparel/Garments / Vacancy rate in malls in major Indian cities rises to 20%
Vacancy rate in malls in major Indian cities rises to 20%
31
Jul '15
A CII-JLL report on real estate sector, titled: 'Is Indian Real Estate Heading towards a Tectonic Shift?', has thrown up disturbing statistics for the retail sector.

According to the study, vacancy rate in retail malls across major Indian cities stands high at 20 per cent.

The on-going transition within the real estate sector is a pointer of what the near future holds. The report predicts sweeping changes in the way real estate developers conduct their business, particularly looking at the innovative practices and agility of certain new breed of developers,

The report highlights on various components of real estate such as office, retail and residential.

Malls are seeing a lot of churn in recent years. On an average, when business is good, churn rates of around 15-18 per cent have been recorded. In India, the range was 4-8 per cent in well-managed malls during the initial years.

Poorly performing retailers exit malls midway through their lease contracts or landlords initiate churn to improve their portfolio of tenants at some locations while at unviable locations, retailers are driving the churn. Contract periods have shortened to 2-5 years today from 9-20 years seen in the mid-2000s.

The overall vacancy rate today stands at 20 per cent in retail malls in the country. On the contrary, malls that run successfully have vacancies of not more than 10 per cent, with a selective few ones operating near full capacities. In recent years, bad malls have succumbed to the business viability stress and have given up hope. Consequently, these malls are either converting into Grade-B office spaces or getting demolished to make way for a new asset class in real estate.

According to the report, few more malls are expected to withdraw from the retail realty business in the near future as a result of which, the business of average and good performing malls will improve. This is a much-needed course correction, which will continue to happen for some time. JLL research estimates around 14 malls to withdraw from retail operations, having combined mall space of 3.5-4.5 million sq ft. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

US holiday retail sales grew 2.9% to $707.5 bn in 2018

Apparel/Garments | On 19th Feb 2019

US holiday retail sales grew 2.9% to $707.5 bn in 2018

Holiday retail sales during 2018 in US grew a lower-than-expected 2.9 ...

Courtesy: Medio banca

Fashion | On 19th Feb 2019

6.6% average annual sales growth in Italy's fashion sector

The Italian fashion sector accounted for 1.3 per cent of its economy...

Boosting yarn production can revitalise Bangla silk sector

Textiles | On 19th Feb 2019

Boosting yarn production can revitalise Bangla silk sector

Boosting yarn production in Bangladesh could help revitalise the silk ...

Interviews View All

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Headhonchos, Indian textile value chain

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Binoy Ravjani, Hero's Fashion

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search