India’s Retail Malls Empty – Slash rentals – Convert to Offices

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Mall mania seems to be fading. With inflation cautioning consumers, retailers, too, are watching their step.

While previously it was a mall-owner’s market — with the mall demanding fixed, steep rents, the market has now turned around with malls pitching lower rentals to woo retailers.

“Despite lack of quality space in the market, the top eight cities in India are currently witnessing around 18% vacancy across the 40 mn sq ft of operational malls. This is because most of the supply has come within the same micro-markets targeting the same catchments, creating an oversupply,” says Rajneesh Mahajan, director of retail services at real estate consultancy firm Cushman & Wakefield.

This has had two major implications — malls have slashed rentals or are converting their projects into office projects.

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