Mall Mania is Down in Economy Slowdown in IndiaAug 10, 2008
Malls are quoting lower rentals to woo retailers. With this rising inflations, retailer are watching their steps. In spite of lack of quality space in top eight cities in India, malls are witnessing around 18% vacancy across the 40mn sq ft of operational malls. Rentals are said to have slumped by 25%-30% over the past four months. In Bangalore, rentals are predicted fall by another 30% over the next eight months.
Malls owners are now looking to throw in freebies like complimentary maintenance and complimentary back-up power. Partnering with retailers is also in offer. Malls owners are offering revenue sharing.
A retailer explains three factors we take into account – power, salary and rentals. If the rent is more than Rs 100 per sq ft per month, the retailer needs to generate Rs 20 per sq ft per day.