Demand for retail space remained steady across high streets and prominent mall developments of the city. Leasing activity was driven by domestic apparel, electronics and F&B operators. During the review period, the city witnessed completion of VR Mall, an organized retail development, by Virtuous Retail. The mall has a leasable area of about 1.0 million sq. ft., with H&M, Marks & Spencer, Westside, Lifestyle, Max, Pantaloons, Trends as anchor tenants, along with a Fun City Entertainment Centre and a PVR multiplex. The mall also houses international retailers such as Hamleys, Forever 21, Steve Madden, Superdry, Vero Moda and Starbucks, along with a co-working space “The Hive”.
Across high streets, apparel
players led leasing activity, with brands such as Raymonds opening outlets across
Anna Nagar and Cathedral Road; Biba setting up a new store in Nungambakkam; and Neerus launching an outlet on Cathedral Road. In addition, Harley Davidson (automobile), Poorvika (electronics), KFC (F&B) and 7 Sports (sports and fitness) opened outlets across high street locations.
Despite steady retail activity, rental values across high streets largely remained stable during the review period. Alwarpet and Adyar were exceptions as they witnessed a 3-6% half-yearly rise in rentals due to lack of quality retail space. In the organized segment, rental values in prominent malls such as Express Avenue, Phoenix Market City and Vijaya Forum mall appreciated by about 6-9% on a half-yearly basis. However, rentals in other malls remained stable during the review period.