By Mr.
Santhosh Kumar, JLL India
Delhi - NCR Retail Real Estate 2012..!
In 2012, the
prospects for retail real estate in Delhi - NCR were marred by a very little
new supply, and the inferior quality of the supply that did exist. Almost all
the current malls in NCR are older than half a decade or / more. Nevertheless, some of the prime malls
continued to perform & even picked up in comparison to 2011.
However, most of the
existing malls performed poorly in 2012, owing to poor location, inferior mall
management, lack of aggression in brand churning, etc. Quality retail space
witnessed decent levels of absorption with little vacancies, while poorer
quality retail space could not be absorbed.
The Best
Performers Of 2012
** South Delhi: The best-performing
malls of 2012 were Select City Walk at Saket & DLF Promenade and DLF
Emporio in Vasant Kunj.
** West Delhi : Pacific Mall was the sole performer among a
number of others shopping complexes.
** East Delhi : Shipra Mall and Mahagun Mall showed
encouraging performances. The Great India Place (GIP) continued to be the star
performer in Noida, while Ambience Mall was the only centre that could
distinguish itself among the huge supply of malls in Gurgaon.
Most of these malls
have been performing consistently well and have a lot in common that can be
attributed to their success.
Professional Mall
Management..!
All these malls have
professional and extremely efficient mall management teams that closely monitor
the day-to-day operations and take crucial strategic decisions.
Good brand / tenant
mix..!
Regular churning of
brands, or / inclusion of leading brands and expulsion of non-performing
brands, enables these malls to maintain their appeal & viability.
Ownership..!
All these malls are
developer-owned malls & not strata titled. This enables the mall owners /
or developers to exercise full control
on mall operations & functioning and to target the best-suited brands.
Revenue sharing..!
Many of these malls
have shown consideration in their rentals &
have started to offer the revenue share model, which is a win-win
situation for both the developer / promoter & the brand. On one hand, it
increases the affordability of spaces and on the other, delivers optimal revue
to the developer for performing brands.
Positioning..!
All performing
shopping centres in 2012 were able to uniquely position themselves as premium /
luxury malls within catchments that cater to the affluent section of
society. Their massive size and
strategic locations, coupled with good connectivity and access, were also
critical factors.
Food, Leisure..!
The food &
leisure options that these malls offer were distinct differentiators, leading
to consistent and increasing footfalls.
Thanks to these
factors, none of the mentioned malls saw any vacancy at all in 2012 – and, in
fact, have a long queue of brands lined up for entry.
The Worst Performers
Of 2012..!
Without actually
naming them, most of the malls in West Delhi, North Delhi, Gurgaon and Noida
performed badly in 2012, with marginal or no improvement in absorption levels.
Some of these malls are strata titled
properties in which the developers / promoters have sold the units to investors
whose decisions are governed solely by capital gain, with no regard to what
works best for the mall.
This resulted in very
minimal decision powers of developers. These malls had a poor tenant mix, with
no brand churn. Most of these malls are not professionally managed.
Malls in North and
West Delhi, and also some in Gurgaon, could not perform due to oversupply, poor
quality, lack of strategic location and no USPs with which to position
themselves.
About the author..!
Mr. Santhosh Kumar is
CEO – Operations at Jones Lang LaSalle India
Santhosh Kumar, CEO –
Operations, JLL India
+91 124 460 5000
santhosh.kumar@ap.jll.com
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