Of­fice retail com­plexes at­tract eye­balls

Re­tail­ers feel this for­mat of­fers them a big­ger bang for their buck in the ab­sence of qual­ity retail space

HT Estates - - HTESTATES - Anuj Puri

While re­tail­ers h ave i d e n - ti­fied the Of­fice Retail Com­plex (ORC) for­mat as a good al­ter­na­tive, they are more than ever, will­ing to look at this for­mat with much more in­ter­est in the ab­sence of qual­ity retail space. ORCs of­fer a higher bang for their buck with com­par­a­tively lower rents de­spite be­ing of­fered prime ground floor spa­ces in com­par­i­son to pre­mium malls and with week­day foot­falls as well as view­er­ship guar­an­teed to be higher than com­pa­ra­ble malls.

With the added ben­e­fit of nearby res­i­den­tial nodes, such ORCs at their op­ti­mum have the po­ten­tial to op­er­ate as stand­alone retail malls in re­spect of the lower floors and gen­er­ate sim­i­lar foot­falls and busi­ness in­comes for re­tail­ers.

This for­mat also of­fers in­sti­tu­tional in­vestors a po­ten­tially higher rev­enue across a di­ver­si­fied ten­ant base while pro­vid­ing them the key dif­fer­en­tia­tor which may be the ul­ti­mate weapon in com­mer­cial oc­cu­pier re­ten­tion and fu­ture rental up­side po­ten­tial.

Here’s a look at the how this for­mat is shap­ing up in the tier-I cities.

Delhi-NCR ends up throw­ing to­tally dif­fer­ent re­sults. While this ge­og­ra­phy out­strips all oth­ers in terms of size of the ORC retail for­mat, the ten­ant mix is also quite at vari­ance.

The dom­i­nant cat­e­gory here com­prises of oth­ers, which is a het­ero­ge­neous mix of gro­ceries, med­i­cal stores, prop­erty bro­kers, laun­dry, courier ser­vices, jew­ellery stores, print­ing ser­vices and sta­tion­ary out­lets.

BFSI makes up for the next high­est ten­ant pres­ence, closely fol­lowed by F&B. The re­main­ing cat­e­gories re­main pe­riph­eral play­ers who take up space based on the po­ten­tial value they can de­rive from their store lo­ca­tions.

It is in­ter­est­ing to note that most of such for­mats and con­se­quently stores are lo­cated in des­ti­na­tions which are well-

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