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Leasing of retail real estate space up 46 pc in Jan-Sep across 8 cities: CBRE

Leasing of retail space rose 46 per cent across eight cities in the January-September period to 4.73 million square feet on better demand from retailers, according to CBRE. The absorption of retail space stood at 3.23 million square feet in the year-ago period.

The data is for absorption of retail real estate space in shopping malls, prominent high street locations and standalone retail properties.

In terms of cities, Bengaluru, Delhi-NCR and Pune collectively accounted for a share of over 61 per cent in leasing activity during this period.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, said, there has been a remarkable growth in retail absorption and supply addition.

“With the surge in newly available spaces and the onset of the festive season, we anticipate a continued upswing in space utilisation,” he said.

Magazine said the retail sector is on the brink of a remarkable transformation, where retailers are keen on revamping the in-store experiences with cutting-edge technology, personalised services and space optimisation. “Although we expect consumer spending and retail sales to stabilise compared to the unprecedented growth of the previous year, we foresee continued growth in categories such as restaurants, hotels, transportation services, vehicle purchases, as well as apparel and footwear,” he said. During the January-September period, the fashion & apparel sector’s share in leasing stood at 34 per cent, home & department stores at 17 per cent, and food and beverage at 13 per cent.

Leasing of retail space in Delhi-NCR stood at 0.9 million square feet, Bengaluru 1.4 million square feet, Mumbai 0.3 million square feet, Hyderabad and Chennai 0.5 million square feet each, Pune 0.6 million square feet, Kolkata 0.1 million square feet and Ahmedabad 0.4 million square feet.

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