CHENNAI RETAIL MARCH 2019 MARKETBEATS 12% 8.8% 0.34 msf QOQ GROWTH IN ANNA NAGAR 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 Gandhi Salai Source: Oxford Economics Q1 2019 also witnessed the inauguration of Marina Mall at Rajiv Gandhi Salai, 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 East Coast Road 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, India Nungambakkam 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% Purasawalkam High Road 110 17 19 0.0% 0.0% Pondy Bazar 140 22 24 4.0% 8.0% Velachery 110 17 19 10.0% 10.0% Ambattur (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 Medavakkam FBB 20,000 Independent Building Perungudi Tata Croma 15,000 A Cushman & Wakefield Independent Building Ambattur Pantaloons 12,000 Research Publication SIGNIFICANT PROJECTS UNDER CONSTRUCTION Cushman & Wakefield (NYSE: CWK) is a leading global real estate PROPERTY LOCATION SF COMPLETION services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 51,000 employees in 400 offices BSR Mall Thoraipakkam 140,000 Q3 2019 and 70 countries. In 2018, the firm had revenue of $8.2 billion across Velachery 200,000 core services of property, facilities and project management, leasing, Esthell Mall Q4 2019 capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..