According to Cushman & Wakefield, the average monthly rentals in Delhi's upscale retail locations of Khan market, South Extension and Connaught Place declined by 14 per cent year-on-year during the July-September period.
According to the data, rentals in malls were stable during the period. At present, malls in South Delhi commands per sq ft monthly rentals of Rs 600, West Delhi Rs 325, Gurugram Rs 350, Noida Rs 250, Greater Noida Rs 125 and Ghaziabad Rs 200.
The consultant noted that key high streets across most cities had become strong F&B (food and beverage) destinations along with other retailer categories across apparel and accessories segments. With most retail businesses being start-ups, they faced working capital challenges and found real estate costs as a big burden.
The consultant said that exits across retail segments were seen and it created new vacancy in the high street locations. With most retailers shelving their expansion plans for the next 6-12 months, new demand was also quite limited.
In such an unprecedented situation, landlords in high streets had to offer lower rents to new space enquiries as active retailers were negotiating hard, Sharma said. In some cases, landlords offered to reduce rents for a short time period or gave rent abatement support.Revenue sharing arrangements as suggested by retailers were also supported by landlords to ensure that retailers stay afloat.