RETAIL MARCH 2019 MARKETBEATS

12% 8.8% 0.34 msf QOQ GROWTH IN MALL VACANCY UPCOMING MALL SUPPLY MAIN STREET RENTALS (Q1 2019) (Q2 2019 – 2022)

HIGHLIGHTS ECONOMIC INDICATORS 2019 2017 2018 Forecast Leasing on main streets remains strong GDP Growth 6.6% 7.3% 7.1% In Q1 2019, leasing remained focused on prominent high streets of Chennai. The CPI Growth 3.3% 3.9% 4.2% Main streets of Anna Nagar and Pondy Bazar continue to remain attractive for retailers, witnessing an increase in space take-up from domestic retailers. Availability Consumer spending 6.3% 7.9% 7.4% of quality retail space, proximity to residential catchments and metro rail connectivity Govt. Final Expenditure Growth 14.2% 3.25% 21.2% are driving the retail activity in these main streets. New mall added in Rajiv Salai Source: Oxford Economics Q1 2019 also witnessed the inauguration of Marina Mall at , adding 0.54 msf. of retail space to the city and is expected to cater to the demand generated MALL SUPPLY / VACANCY by professionals, students and the residents in the RGS corridor. In other malls, key deals saw the entry of international brands such as American Eagle at Phoenix Mall 2,500 10% and Patissez at Palladium Mall. Other prominent brands that expanded their retail 2,000 8% 1,500 6% footprint in Chennai included Marks and Spencer’s, Forever new, Mia, Archies, Miniso 1,000 4% and Lacoste at VR Mall and Fila at Phoenix Mall. With the recent mall supply getting 500 2% filled up steadily, rents were largely range bound during the quarter. 0 0% 2012 2013 2014 2015 2016 2017 2018 Q1 A Cushman & Wakefield Increased momentum in F&B segment 2019 Research Publication In Q1 2019, Chennai witnessed robust retail space leasing from F&B, Health and Supply ('000 sf) Vacancy % Fitness segments. Prominent city based pubs and restobars have expanded their DATA Source: Cushman & Wakefield Research INTO operations along the areas of Rajiv Gandhi Salai and and close to ACTION 25,000 sf across new F&B outlets is expected to be ready in the next two quarters. The rising popularity for pubs, especially in Chennai can be attributed to the lifestyle www.cushmanwakefield.com changes and demands from the middle class and the rich populace of the city. CHENNAI RETAIL MARKETBEATS MARCH 2019

Rohan Sharma PRIME RETAIL RENTS – INR EURO US$ Q-O-Q Y-O-Y SF/MTH SF/YR SF/YR CHANGE CHANGE Director MAIN STREETS Research Services, High Road 130 20 23 4% 4% Tel: +91 0124 4695555 [email protected] Khadar Nawaz Khan Road 145 22 25 4% 4% Cathedral Road – R.K. Salai 110 17 19 0.0% 0.0% Usman Road - South 90 14 16 0.0% 0.0% Usman Road - North 100 15 17 0.0% 0.0% Adyar Main Road 130 20 23 4.0% 8.3% Anna Nagar 2nd Avenue 140 22 24 12.0% 17.0% High Road 110 17 19 0.0% 0.0% Pondy Bazar 140 22 24 4.0% 8.0% 110 17 19 10.0% 10.0% (MTH Road) 90 14 16 0.0% 6.0% INR EURO US$ Q-O-Q Y-O-Y PRIME RETAIL RENTS - MALLS SF/MTH SF/YR SF/YR CHANGE CHANGE Chennai - CBD 225 35 39 0.0% 2.3% Chennai - Western 185 29 32 2.8% 5.7% Chennai - South 185 29 32 0.0% 0.0% Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted ; US$ = INR 69.17 AND € = INR 77.84

SIGNIFICANT TRANSACTIONS DATA INTO PROPERTY SUBMARKET TENANT SF ACTION Independent Building FBB 20,000 Independent Building Tata Croma 15,000

A Cushman & Wakefield Independent Building Ambattur Pantaloons 12,000 Research Publication SIGNIFICANT PROJECTS UNDER CONSTRUCTION

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