Retail Snapshot Q1 2017

Transcription

1 AHMEDABAD, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS C.G. Road % 0.0% Law Garden % 0.0% Satellite Road % 0.0% Maninagar % 0.0% Prahladnagar % 0.0% S.G. Highway % 0.0% MALLS Vastrapur % 0.0% S.G. Highway % 0.0% Drive-in Road % 0.0% Kankaria Lake % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks post-demonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Market Overview No new mall supply; tepid leasing activity in malls. The quarter was marked by tepid activity with no new mall supply and no prominent transaction recorded. The lull in leasing can be partly attributed to the limited availability of good quality spaces in malls. Amidst stable inventory levels and limited leasing activity in malls, exits by select retailers in malls in Vastrapur led to an increase of 0.82 percentage points in the city s vacancy levels to 31.9% at the end of March Rental values maintained their status quo across all submarkets. Limited transaction activity on main streets; rentals maintained status quo. Retailers from the food & beverages (F&B) and lifestyle segments preferred mixed-use developments while setting up their stores. Further, retailers from the mobile accessories segment are looking for quality spaces on prime main streets such as C.G. Road and Prahladnagar. Rentals remained stable during the quarter as transaction activities were restrained.

2 AHMEDABAD, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Ten 11 C.G. Road W 2,400 Pushpak Square Prahladnagar Café Coffee Day 1,400 Outlook Mall rental values anticipated to be stable. Leasing activity in malls is not expected to gain much momentum during the second quarter of 2017, owing to restrained enquiries from retailers. Hence, rental values are also expected to remain stable in the upcoming quarter. Leasing activity expected to gain momentum in main streets; rentals expected to appreciate in select main streets. An increase in enquiries from mobile accessories and F&B retailers on prime main streets of C.G. Road and Prahladnagar is likely to strengthen rental values in the upcoming quarter. About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

3 BENGALURU, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS MG Road % 0.0% Brigade Road % -1.8% Commercial Street % 0.0% Indiranagar 100 Feet Road Jayanagar 4th Block, 11th Main Sampige Road, Malleswaram % 0.0% % 0.0% % 0.0% Koramangala 80 Feet % 0.0% Road Vittal Mallya Road % 0.0% New BEL Road % 0.0% Marathahalli Junction % 0.0% Kamanahalli Main % 0.0% Road HSR Layout 27th Main % 0.0% MALLS Koramangala % 0.0% Magrath Road % 0.0% Cunningham Road % 0.0% Mysore Road % 0.0% Vittal Mallya Road % 0.0% Whitefield % 0.0% Rajarajeshwarinagar % 0.0% Malleswaram % 0.0% Bannerghatta Road % 0.0% Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks post-demonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Market Overview Stable leasing drove down the vacancy rate. A new mall measuring 250,000 square feet (sf) became operational during the quarter. The new mall, located in Vijaynagar, saw advanced pre-commitments from retailers. Despite the fresh supply, steady leasing during the quarter resulted in the total mall vacancy rate declining to 11% this quarter, from 12% in the previous quarter. Steady rentals. Mall rentals across all locations remained stable in the first quarter of 2017 due to limited supply and steady demand. Strong leasing in main streets. Main streets recorded heavy leasing during the quarter, with fitness brands leading leasing activities, followed by jewelry, apparels and food & beverages segments. Among notable deals, Tata s saree brand Taneira opened its first store in India, while online fashion retailer Myntra opened its first brick-and-mortar store in the city s main streets. Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= 65.5 and Euro 1 = 70.7

4 BENGALURU, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Independent HSR Reliance Trends 12,000 Kemp Fort Old Airport Road Pantaloons 11,000 SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date RMZ Galleria Yelahanka 500,000 Q Outlook Strong supply expected. Approximately 1.8 million square feet (msf) of mall space is scheduled to be completed in the latter half of the year across the south, north and east submarkets of Bengaluru. Retailers are considering expansion. Hypermarkets like Spencer s, Star Bazaar, and Decathlon are considering expansion in the city and are looking for suitable retail spaces. Most retailers are likely to prefer main streets over malls, due to better visibility. Vega City Mall Forum Shantiniketan Bannerghatta Road 420,000 Q Whitefield 600,000 Q Rentals and vacancy rate are expected to be stable. Rentals in main street and malls are expected to remain steady in the near term. About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

5 CHENNAI, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.2% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS Nungambakkam % 0.0% High Road Khadar Nawaz % 0.0% Khan Road Cathedral Road % 0.0% R.K. Salai Usman Road % 0.0% South Usman Road % 0.0% North Adyar Main Road % 0.0% Anna Nagar 2nd % 0.0% Avenue Purasawalkam High % 0.0% Road Pondy Bazar % 0.0% Velachery % 0.0% Ambattur (MTH Road)* MALLS % 0.0% Chennai CBD** % 0.0% Chennai % 0.0% Western** Chennai South** % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = *Newly Added in 2015 **Select shopping malls have been considered for calculation of malls rentals. Luxury spaces not included Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks post-demonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Retail Market Overview Supply deferred; vacancy rate rises as retailers relocate About 0.5 million square feet (msf) of new mall space, scheduled to be operational during the quarter, has been deferred due to construction delays. With this, the city has not seen any mall supply in more than 12 quarters. Despite no fresh supply, the overall vacancy rate increased by 0.9 percentage points to 8.63% as retailers exited a mall in the Central Business District (CBD) due to higher rentals, as well as lower footfalls in the area resulting from the ongoing metro-construction work. Apparels continue to lead leasing activities in main streets, followed by beauty products and footwear. Main streets remained the preferred choice for retailers due to low availability of quality spaces in malls, as well as greater visibility of brands in main streets. Prominent main street locations such as Purasawakkam, Adyar and Annanagar recorded buoyant leasing activities. Domestic brands such as YLG Salon, Khadims, Lenskart, Global Desi, Café Coffee Day and international brands such as Max Retail and Pepe Jeans opened stores in main streets during the quarter. Mall and main street rentals remained unchanged. Mall rentals were stable across all micro-markets due to limited leasing activities amid low availability of quality spaces. Rentals in main streets also remained flat across all locations as leasing activities were stable.

6 CHENNAI, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Express Avenue Royapettah Forever 21 2,000 Independent Building Purasawakk am Max Retail 12,000 SIGNIFICANT PROJECTS UNDER CONSTRUCTION Property Location Square Feet Completion Date Outlook Fresh supply in peripheral markets likely to escalate vacancy rates. The vacancy rate in malls is expected to record a spike in the second quarter as fresh supply of about 0.5 msf is expected to be available in the peripheral markets. However, mall rentals are expected to remain stable due to steady demand from retailers. On the other hand, main street rentals in key submarkets such as Annanagar, Nungambakkam, and Adyar may see an uptick due to robust demand from both domestic and international brands. The Palladium Velachery 250,000 Q Ozone Metrozone Mall Anna Nagar 1,000,000 Q About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

7 DELHI-NCR, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS Khan Market 1, % 0.0% South Extension I & % 0.0% II Lajpat Nagar % 11.1% Connaught Place % 11.7% Greater Kailash I, M % -3.2% Block Rajouri Garden % 12.5% Punjabi Bagh % 12.5% Karol Bagh % 0.0% Kamla Nagar % 0.0% Dwarka % 0.0% Vikas Marg % -12.5% DLF Galleria % 13.3% (Gurgaon) Sector 29 (Gurgaon) % 31.6% Sector 18 (Noida) % -11.1% MALLS South Delhi % 20.0% West Delhi % 0.0% Gurgaon % 0.0% Noida % 0.0% Greater Noida % 0.0% Ghaziabad % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks post-demonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Market Overview Strong leasing drives down mall vacancy rate. Strong leasing by retailers, coupled with no new supply addition led to a reduction in the mall vacancy rate to 11% at the end of the quarter. Apparel, accessories, and footwear retailers were the main drivers of leasing activities in malls, with brands such as Saks Fifth Avenue, Pantaloons, Vincenzio Robertino, and Cath Kidston leasing spaces during the quarter. In fact, Saks Fifth Avenue is the first multi-brand luxury retailer to foray into the country. Mall rents remained unchanged across most submarkets. Mall rentals across all submarkets remained stable despite strong leasing activities during the quarter on account of adequate space availability. Main street rents also maintained their status quo. Main street locations did not record any change in rentals during the quarter. However, landlords have become more flexible with payment terms in order to maintain healthy leasing momentum. Food & beverages (F&B), apparel, and beauty and healthcare retailers like Subway, The Darzi Bar & Kitchen, Café Culture, Raymonds, Giovani, Geetanjali Salon, and Nirvana Beauty Spa were some brands that leased spaces across main streets, primarily in New Delhi.

8 DELHI-NCR, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Worldmark 2 Aerocity Saks Fifth 1,00,000 Avenue Metropolis Mall MG Road Pantaloons 15,000 Standalone Connaught Place The Darzi Bar & 4,000 Kitchen Standalone Sec. 31, Gurgaon Geetanjali Salon 2,000 SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date Omaxe Connaught Place Greater Noida 850,000 Q Outlook New mall space to be added in the second quarter. Close to 1.0 million square feet (msf) of mall space across two projects, one each in Greater Noida and New Delhi, is expected to become operational in later in the year. Despite the new supply, mall rentals are expected to remain range-bound in the next quarter on account of steady demand. Main street rents to remain broadly unchanged. Rentals for most main streets are expected to remain largely stable in the upcoming quarter due to stable demand and availability of space. About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

9 HYDERABAD, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS M.G. Road % 0% S.P. Road/Begumpet Raj Bhavan Road/Somajiguda % 0% % 0% Banjara Hills % 0% Abids % 0% Himayathnagar % 0% Punjagutta % 0% Ameerpet % 0% Jubilee Hills % 0% Kukatpally NH % 0% A.S. Rao Nagar % 0% Madhapur % 0% MALLS NTR Gardens % 0% Himayathnagar % 0% Banjara Hills % 0% Madhapur % 0% Panjagutta % 0% Somajiguda % 0% Kukatpally % 0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks postdemonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Retail Market Overview Movement in retailers led to marginally higher vacancy in malls. There are still no fresh supply during the quarter as the city has not recorded any new mall completion over the last two years. Leasing activities in malls were limited during the quarter due to lack of space in existing malls. Also, some malls have been undergoing a turnover in retailers, as they are changing their brand mix in a bid to reposition themselves. This led to a marginal increase in mall vacancy levels to 5.2% at the end of the quarter. Hyderabad has one of the lowest vacancy rates in malls among the top eight Indian cities. Main streets see steady activity. During the quarter, the food and beverages (F&B), and lifestyle brands segments drove leasing activity in main streets. Brands such as H&M, Westside, and Mamagoto leased spaces in main streets during the quarter. Hyderabad-based biryani restaurant brand Paradise opened its first small-format store in Madhapur during the quarter. Homegrown brands in the lifestyle and F&B segments are on an expansion spree, spurring demand for spaces in main streets. No change in the rental rates. Rentals across malls and main streets have remained stable during the quarter as demand and supply remained stable.

10 HYDERABAD, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Main Street Himayathnagar Westside 30,000 SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date L&T Mall Erramanzil 3,50,000 Q32018 Outlook Moderate demand expected; stable vacancy rate in the next quarter. No mall supply is expected to become operational during the next quarter. A few luxury brands are also evaluating spaces in an upcoming mall and in an existing prominent high street in Jubilee Hills. Moderate demand in malls amid low availability is likely to keep the vacancy rate range-bound. However, leasing activities in main streets are likely to pick-up with the beginning of a new financial year.. About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

11 KOLKATA, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS Park Street % 0.0% Camac Street % 0.0% Lindsay Street % 0.0% Elgin Road % 0.0% Theatre Road % 0.0% Gariahat % 0.0% Shyambazar % 0.0% Hatibagan % 0.0% Kankurgachi % 0.0% VIP Road % 0.0% MALLS South Kolkata % 0.0% East Kolkata % 0.0% Rajarhat % 0.0% Elgin Road % 0.0% Park Circus % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks post-demonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Market Overview Strong leasing leads to decline in mall vacancy. Robust leasing activities in malls coupled with no fresh supply led to a 0.9 percentage point decline in the vacancy rate of malls to 3.6% at the end of the quarter. Apparel, accessories, and food & beverage (F&B) companies like Pantaloons, Little Shop, Go Colors, 109 F, Samsonite, KFC, and Café Coffee Day were some of the key retailers that leased space in malls. Mall rentals remained stable across all submarkets. Mall rentals remained unchanged during the quarter due to adequate availability in existing malls. A couple of malls in the South and South Central submarkets have already initiated or are planning refurbishment or expansion of their properties. Developers are undertaking these plans in order to fulfil requirements for large spaces, especially by departmental stores, which are not being met in the current developments. Main street rentals maintained their status quo due to steady demand. Pantaloons, Reliance Trends, and PVR were some of the retailers that leased space during the quarter in the micro-markets of NSC Bose Road, Park Street, and Sealdah.

12 KOLKATA, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Standalone NSC Bose Road Pantaloons 10,000 Lake Mall Lake Market KFC 1,100 Metropolis Mall EM Bypass Apple 975 Mani Square EM Bypass 109 F 850 Outlook Mall rentals expected to remain broadly unchanged during the next quarter. Stable demand by retailers is expected to keep mall rentals largely unchanged in the next quarter. F&B and apparels to drive leasing activity in main street locations in the next quarter. Main street rentals are likely to remain stable in the next quarter on account of sufficient space availability in the market. SIGNIFICANT PROJECTS UNDER CONSTRUCTION Property Location Square Feet Completion Date Downtown Rajarhat 300,000 Q V Mall Rajarhat 300,000 Q About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

13 MUMBAI, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS Linking Road % 0.0% Kemps Corner/ Breach Candy Colaba Causeway % 1.2% % -2.4% Fort Fountain % 10.0% Lokhandwala Andheri % 0.0% Borivali LT Road % 0.0% Chembur % 0.0% Vashi % 0.0% Thane % 0.0% Malls Lower Parel % 2.5% Link Road (Andheri W) % 0.0% Malad % 1.1% Goregaon % 2.2% Kandivali* % 0.0% Kurla* % 0.0% Ghatkopar % 0.0% Bhandup-Mulund % -3.4% Vashi % 0.0% Thane % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = *Newly Added in 2015 Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks postdemonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Market Overview Healthy momentum in mall leasing activities in select submarkets. With no completion, this was the second consecutive quarter of no new mall supply in the city. In this scenario of no fresh supply and healthy leasing, overall mall vacancy in the city declined by 0.4 percentage points to 15.8% at the end of the quarter. The revamping of an existing mall in Vashi drove significant interest from retailers. Mall leasing activities recorded significant traction in the submarkets of Kurla and Vashi, driven by multiple segments such as apparels, fashion accessories, food & beverages (F&B), and consumer electronics. Main streets remain inactive. Leasing activity remained largely slow on main streets as tenants adopted a wait-and-see approach in anticipation of a decline in rentals post-demonetization. However, F&B continued its leasing momentum during the quarter, with prominent F&B players such as D: OH! and Theory opening outlets in Kamala Mills. Rental values increased in select malls and declined in select main streets. Rental values increased 1-2% across malls in Malad and Goregaon on the back of sturdy demand from retailers, amidst limited availability of quality spaces. In contrast, rental values declined by 1-2% on the main streets of Colaba Causeway and Linking Road. This is attributable to continued lacklustre activity triggered by demonetization as retailers anticipate a significant reduction in rentals going ahead. Rentals across other prominent main streets remained stable owing to steady demand.

14 MUMBAI, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Palm Beach Galleria Vashi INOX 23,000 Pheonix Market City Kurla Forever 21 15,000 Growel Kandivali Croma 12,000 SIGNIFICANT PROJECTS UNDER CONSTRUCTION Property Location Square Feet Completion Date Nirmal Lifetsyle Phase 2 Reliance Mall Mulund 800,000 Q Bandra Kurla Complex (BKC) 300,000 Q Outlook Mall leasing activities to maintain their momentum. With expected entry/expansion of lifestyle retailers, leasing activities are expected to be healthy in malls. At the same time, leasing transactions are anticipated to remain moderate on main streets as retailers are postponing their decisions, in anticipation of a correction in rentals. The Grand Central Mall in Navi Mumbai, measuring 1.1 million square feet (msf) is slated to be fully operational in the beginning of the next quarter. Mall rentals to remain largely range-bound while main streets rentals are expected to decline. Rental values across most malls are expected to remain stable in the second quarter of 2017 led by a steady demand-supply environment. While rentals across most main streets are expected to remain stable, rentals in Linking Road and Colaba Causeway are likely to further slide downwards due to weak demand. About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.

15 PUNE, INDIA ECONOMIC INDICATORS National F GDP Growth 7.2% 7.1% 6.7% CPI Growth 4.9% 4.9% 4.7% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 5.5% 11.1% 10.5% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS MARCH 2017 MAIN STREETS M.G. Road % 0.0% J.M. Road % 0.0% F.C. Road % 0.0% Koregaon Park % 0.0% Aundh % -11.1% Bund Garden Rd % 0.0% Mumbai-Pune Highway PCMC MALLS % 4.3% Camp % 0.0% Koregaon Park % 0.0% Nagar Road % 0.0% Hadapsar % 0.0% PCMC Aundh* % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = PCMC denotes Pimpri Chinchwad Municipal Corporation *Newly added in Q % NA Economy For the October-December quarter of 2016, India s Gross Domestic Product (GDP) grew a healthy 7.0%, belying expectations of subdued growth due to demonetization. In February 2017, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 3.6%, treading below the government s average target of 4%. While there were expectations of a cut in the repo rate, the RBI has not revised its policy rates since October 2016 due to the firming up of global oil prices and availability of ample funds with banks post-demonetization. Investors are bullish about the organized retail space (malls) in India given the low penetration of organized retail, improving mall management, as well as the opportunity to list retail assets under Real Estate Investment Trusts (REITs). In Nielsen s Global Consumer Index, which measures perceptions of personal finances and immediate spending intentions, India was ranked at top position for the second time in a row. Market Overview Withdrawal of malls from operational stock; moderate leasing activities. Pune did not witness any fresh supply for the third consecutive quarter. A prominent mall in the Nagar Road submarket withdrew from operational retail stock due to weak demand and is expected to be converted for commercial office use. The quarter was marked by limited leasing activities in malls, with most of the transactions driven by lifestyle and food & beverages (F&B) retailers. The combined effect of moderate leasing activity, as well as a reduction in mall inventory pushed the vacancy rate marginally northwards to 20.1% at the end of March Mall rentals remained stable. Rental values in malls remained stable during the quarter due to sluggish leasing activities and sufficient availability in existing stock. Moderate leasing activities in Pune s main streets; rentals decline in select locations. Pune s prime main streets M.G. Road and Koregaon Park recorded moderate leasing activities driven by F&B and lifestyle retailers. Rentals in main streets remained flat during the quarter, except in Aundh where rentals softened 3.0% quarter-on-quarter (QoQ). The fall in rentals in the submarket was led by competitive pressure as a few lifestyle stores relocated to another mall in the same submarket.

16 PUNE, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Westend Mall Aundh M&S 10,000 Fun N Shop Mall Fatima Nagar Nexa 7,000 Outlook Main street rentals likely to show mixed results. Main street rentals in Aundh are expected to soften further in the upcoming quarter due to competitive pressure from other malls within the submarket. However, rentals in M.G Road and J.M. Road are expected to strengthen led by sustained retailer interest. SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date My Mall Senapati Bapat Rd 350,000 Q Elpro Mall PCMC 400,000 Q Consistent leasing activities expected in malls; rentals anticipated to be stable. Due to the increased inquiries from F&B retailers, leasing transactions are expected to be consistent during the upcoming quarter. However, sufficient supply in existing malls is expected to keep the rentals range-bound. About Cushman & Wakefield Cushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way people work, shop, and live. The firm s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms in the world with revenues of $5 billion across core services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global occupier services, investment management (branded DTZ Investors), tenant representation and valuations & advisory. To learn more, visit or on Twitter. Siddhart Goel Senior Director Research Services, India Tel: siddhart.goel@ap.cushwake.com Copyright 2017 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.