Office retail complexes attract eyeballs
Retailers feel this format offers them a bigger bang for their buck in the absence of quality retail space
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-