Retail Snapshot Q4 2016

Transcription

1 AHMEDABAD, INDIA ECONOMIC INDICATORS National F GDP Growth 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 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 The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Market Overview No new mall supply; limited leasing activity in malls. Ahmedabad did not witness any new mall supply during the fourth quarter of No major transaction was recorded in malls during the quarter. This could be partly attributed to limited availability of good quality spaces in malls. Amidst stable inventory levels and limited leasing activity in malls, the city s vacancy level remained consistent at 31% at the end of Rental values also remained stable across all submarkets. Limited transaction activity on main streets; rentals remained stable. Retailers from food & beverage (F&B) and lifestyle categories preferred mixed-use developments to set up their retail outlets. Further, quick-service restaurants are looking for quality spaces on prime main streets such as S.G. Highway and Prahladnagar. Rentals maintained status-quo during the quarter.

2 AHMEDABAD, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Turquoise C.G. Road Reliance Retail 10,000 Shilp Aaron S.G. Highway Creamistry 5,000 Outlook Leasing activity expected to gain momentum in main streets; rentals anticipated to rise in select main streets. Rise in enquiries from F&B retailers on prime main streets at S.G. Highway and Prahladnagar are anticipated to strengthen rental values in the upcoming quarter. SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date Applewoods Galleria Bopal 160,000 Q Mall rental values likely to be consistent. Owing to restrained enquiries for spaces in malls, leasing activity is not expected to show much momentum. Rental values are also expected to remain stable 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 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 Road % 0.0% Vittal Mallya Road % 0.0% New BEL Road % 0.0% Marathahalli Junction % 0.0% Kamanahalli Main Road HSR Layout 27th Main MALLS % 3.4% % 0.0% 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% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = Economy The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organized retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Market Overview New supply deferred due to delays in construction. Of the approximately 2.7 msf of new mall supply scheduled for completion in the fourth quarter, approximately half has been deferred to the next couple of quarters, due to delays in construction. Further, the launch of select malls totaling 1.3 msf of space in Electronic City has been put on hold due to lack of demand from retailers. Vacancy rate marginally increased in Q4. Vacancy rate of malls increased to 12.5% at the end of the quarter, from 11.7% in the previous quarter. The increase was largely due to an electronics retailer s exit from a mall near CBD submarket. Rentals across all major locations remained steady in Q Rentals across the city remained stable in the quarter in the absence of new supply and stable demand.

4 BENGALURU, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Virginia Mall Varthur Road Pantaloons 6,000 Virginia Mall Varthur Road Paradise Biriyani 5,000 Independent Jayanagar Lalitha Jewellery 12,000 SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date RMZ Galleria Yelahanka 500,000 Q Vega City Mall Forum Shantiniketan Bannerghatta Road 420,000 Q Whitefield 600,000 Q Outlook New mall supply expected to increase vacancy. Three malls totaling approximately 1.5 msf of space are expected to become operational over the next two quarters. Although, these will lead to a marginal increase in overall vacancy, rentals will not be impacted directly. Rental renegotiation in high streets expected. Sales of luxury items have been impacted due to the recent demonetization, citing which retailers may push for a renegotiation of rentals in high streets over the next few months. 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 MAIN STREETS Nungambakkam High Road Khadar Nawaz Khan Road Cathedral Road R.K. Salai Usman Road - South Usman Road - North % 0.0% % 0.0% % 7.0% % 0.0% % 0.0% Adyar Main Road % -6.0% Anna Nagar 2nd Avenue Purasawalkam High Road % 0.0% % 0.0% Pondy Bazar % 0.0% Velachery % 0.0% Ambattur (MTH Road)* MALLS % 0.0% Chennai CBD** % 0.0% Chennai Western** % 0.0% 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 The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Retail Market Overview Lack of supply and steady momentum in leasing brings down vacancy rate. The city did not witness any new mall supply during the fourth quarter as the approximately 0.9 million square feet (msf) scheduled for completion in the current quarter was deferred to Malls witnessed steady leasing during the quarter led by apparels, food & beverage (F&B) and computer hardware segments. Therefore, the vacancy level declined by 0.7 percentage point to 7.6% at the end of the quarter. Leading international retailer, H&M, leased space in one of the prominent malls in the CBD. The Chocolate Room and Acer were some of the other brands that took up spaces in malls during the quarter. Apparel, accessories and electronics retailers drove demand for space in main streets. Main street locations of Velachery and Anna Nagar observed robust leasing, primarily by domestic brands such as Reliance Digital, Reliance Trends, Lenskart, Sting, and Limelite. Mall and main street rentals remained unchanged. Mall and main street rentals remained stable owing to limited leasing activity amidst low availability of quality spaces.

6 CHENNAI, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Express Avenue Royapettah H&M 34,000 Independent Building Velachery Reliance Digital SIGNIFICANT PROJECTS UNDER CONSTRUCTION 8,000 Property Location Square Feet Completion Date Outlook New mall space expected to be added in next quarter. The market is likely to witness addition of approximately 0.5 msf of new mall supply in the next quarter in Velachery. With this, new supply will be seen in the city after a gap of 12 quarters. Addition of higher supply in the subsequent quarters, primarily in the peripheral locations, will drive the overall vacancy upwards. Mall rentals are likely to remain range-bound due to steady demand by retailers. 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 MAIN STREETS Khan Market 1, % 0.0% South Extension I & II % -6.7% Lajpat Nagar % 11.1% Connaught Place % 11.7% Greater Kailash I, M Block % -16.4% Rajouri Garden % 12.5% Punjabi Bagh % 12.5% Karol Bagh % 0.0% Kamla Nagar % 0.0% Dwarka % 5.9% Vikas Marg DLF Galleria (Gurgaon) % -12.5% % 13.3% 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 The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Market Overview Vacancy declines, no new supply infusion. Steady leasing by retailers amidst no new supply led to vacancy rate declining to 16% at the end of the quarter. Apparel and home décor retailers dominated leasing activity in malls with brands such as Yepme, Armani Exchange, Madame, and Casa Pop actively leasing space during the quarter. Mall rents remained stable across most submarkets. Mall rentals maintained status quo across all submarkets owing to steady demand from retailers. Despite witnessing significant interest from retailers, even prominent malls in South Delhi and Noida did not witness any change in the ongoing market rentals. Select main streets witness increase in rents. Most of the main street locations witnessed stable rents during the quarter owing to stable demand. However, DLF Galleria and Sector 29 in Gurgaon witnessed an increase of 6-11% in rentals over the previous quarter spurred by demand from retailers. Apparel, food & beverage (F&B) and beauty and healthcare retailers such as Kidsberry, Wrangler, Pantaloons, Keventers, Burger King, Taco Bell, Geetanjali Salon leased retail space across main streets during the quarter.

8 DELHI-NCR, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Mall of India Noida Yepme 7,600 Standalone Punjabi Bagh Geetanjali Salon 3,000 Standalone Connaught Place Skechers 2,800 Select City Walk SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date Omaxe Connaught Place Saket Armani Exchange 1,720 Greater Noida 850,000 Q Outlook About one million square feet mall space expected to be added in One mall each in Greater Noida and New Delhi are likely to become operational during the first half of Despite the new supply expected, mall rentals are expected to maintain status-quo in the next quarter owing to stable demand. Main street rents likely to maintain status quo. Rentals for most main streets are expected to remain range-bound, except for pockets in Gurgaon, like Sector 29, which might witness a slight surge in rentals, led by continued interest from retailers coupled with limited availability of quality retail spaces. 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 MAIN STREETS M.G. Road % 0.0% S.P. Road/Begumpet Raj Bhavan Road/Somajiguda % 0.0% % 0.0% Banjara Hills % 0.0% Abids % 0.0% Himayathnagar % 0.0% Punjagutta % 0.0% Ameerpet % 0.0% Jubilee Hills % 0.0% Kukatpally NH % 0.0% A.S. Rao Nagar % 0.0% Madhapur % 0.0% MALLS NTR Gardens % 0.0% Himayathnagar % 0.0% Banjara Hills % 0.0% Madhapur % 0.0% Panjagutta % 0.0% Somajiguda % 0.0% Kukatpally % 0.0% Note: Asking rent (/sf/month) on carpet area of ground floor Vanilla stores is quoted Conversion Rate: 1= and Euro 1 = Economy The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Retail Market Overview No fresh mall supply during the quarter. Mall supply of nearly 1.5 msf, which was anticipated during the quarter, has been delayed by 6 to 12 months owing to construction delays. With this postponement, the city has not witnessed any new mall supply for nine consecutive quarters. Vacancy rate increased marginally due to a churn in tenants. Limited availability of quality space in malls led to subdued leasing activity during the quarter. The overall vacancy rate increased marginally to 4.6% at the end of the quarter, as a few retailers exited prominent malls in Madhapur and Kukatpally submarkets. Main streets are attracting higher leasing activity than malls. The F&B sector accounted for the highest share in leasing in main streets, drive-in formats and IT Parks during the quarter. Most of the F&B retailers preferred standalone spaces on main streets with large parking capacity, due to which, the main streets of Jubilee Hills, Gachibowli and Kothaguda witnessed higher leasing activity during the quarter. Some of the retailers that are expected to set up stores in main streets include KFC, Buffalo Wild Wings, Mamagoto, etc. Rentals continue to remain flat during the quarter. Limited availability of quality space in malls led to subdued leasing in malls, thereby keeping rentals flat during the quarter. Similarly, rentals remained stable in main streets as leasing was stable.

10 HYDERABAD, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Inorbit Mall Madhapur H&M 20,000 Kothaguda Junction Highstreet SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date Sattva Salarpuria Food Court Maruthi Infinity Mall Kothaguda Jubilee Hills Road no 36 Mamagoto restaurant Buffalo Wild Wings 17,000 15,000 Gachibowli 300,000 Q Chandanagar 225,000 Q Outlook Vacancy rate likely to be stable in the next quarter. No new malls are expected to become operational in the next quarter. The vacancy rate is, therefore, expected to be stable during Q Rental values expected to remain stable. Rentals in main streets and malls have remained largely stable in the city over the last two years. With moderate leasing activity and no supply of malls, rentals are expected to remain flat in the next quarter too. 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 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 The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Market Overview Steady demand coupled with no supply leads to decline in vacancy. The city did not witness addition of any new mall during the quarter. Overall vacancy reduced by 0.5 percentage points and stood at 4.5% during the quarter due to moderate leasing activity. Leasing activity in malls was driven by apparel brands such as Arrow, Little Shop, Club SP (Satya Paul), Hush Puppies and Spencers in the hyper-market category during the quarter. Mall rents across all submarkets maintained status quo. Despite low availability, mall rentals across all submarkets remained stable during the quarter as transactions were executed at ongoing market rates. Malls witnessed an increase in enquiries for large spaces by departmental stores, which were planning to expand. However, these could not be executed due to limited availability of such large spaces in malls in the city. Main street rentals remained unchanged due to stable demand. Designer apparels, as well as beauty & wellness retailers such as Ritu Kumar and Cocktail Thai Spa were some of the retailers that leased spaces at main streets of Ballygunge and Elgin Road during the quarter.

12 KOLKATA, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Acropolis Mall Rajdanga Main Rd Spencers 9,000 Acropolis Mall Rajdanga Main Rd Time Zone 6,500 Mani Square EM Bypass Arrow 1,200 Standalone Elgin Road Ritu Kumar 1,500 SIGNIFICANT PROJECTS UNDER CONSTRUCTION Property Location Square Feet Completion Date Downtown Rajarhat 300,000 Q V Mall Rajarhat 300,000 Q Outlook Mall rentals likely to remain stable during the next quarter. Mall rentals are expected to remain range-bound across submarkets due to steady demand from retailers. Development of a new mall in Dum Dum area of north Kolkata is in the planning stage. Currently, Dum Dum does not have any organized retail development. Leasing in main street locations to drive retail leasing in the next quarter. Retailers, especially in the F&B and apparel categories, are likely to prefer main streets due to limited availability of space in malls. However, rentals are likely to maintain status quo in the next quarter, due to adequate availability of space in main streets. 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 MAIN STREETS Linking Road % 1.3% Kemps Corner/ Breach Candy Colaba Causeway % 1.2% % 3.3% 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 % 0.0% Goregaon % 2.2% Kandivali* % 0.0% Kurla* % 2.7% 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 The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Market Overview Marginal dip in mall vacancies with no supply addition. The quarter did not witness any fresh mall supply, after supply infusion of nearly 0.9 msf, over the last two quarters. However, overall mall vacancy for the city declined marginally and stood at 16.2% at the end of the quarter, on the back of limited leasing activity confined to select submarkets of Kurla and Kandivali. International apparel and fashion accessories retailers such as Forever 21, Sephora, etc. continued to expand their footprint in malls. Main streets remain active. The main streets of Lower Parel, Bandra-Kurla Complex (BKC) and Linking Road witnessed active leasing from retailers in the F&B and apparel segments. Some of the prominent F&B outlets that opened during the quarter include Mr.Baozi (Juhu and Lower Parel) and Beer Café (Lower Parel). Rental values largely remained stable across most malls and main streets. Owing to sufficient availability of space in existing malls, rental values remained stable across most of malls during the fourth quarter. Rental values declined by 2-3% on the main street of Colaba Causeway as landlords closed deals at lower than average market rates (as demand dipped post the recent demonetisation move). Rentals across other prominent main streets remained stable owing to steady demand.

14 MUMBAI, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Phoenix Market City Kurla Forever 21 10,000 Growel Mall Kandivali Croma 10,000 Individual Property Fort Adidas 4,000 SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date Grand Central Reliance Mall Seawoods Navi Mumbai Bandra Kurla Complex (BKC) 1,100,000 Q ,000 Q Outlook Leasing activity to rebound. Leasing activity is expected to pick up pace in malls with expected entry/ expansion of lifestyle retailers. At the same time, F&B players are expected to continue leasing in select main streets of Kamala Mills and Linking Road. Mall and main street rentals to remain largely range-bound. Rental values across most malls and main streets are expected to remain stable in the first quarter of Malls in Lower Parel and main streets of Fort / Fountain and Linking Road would continue to be the preferred locations amongst international retailers. 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 7.0% 7.2% 7.5% CPI Growth 6.6% 4.9% 5.4% Private Final Expenditure Growth 6.8% 6.2% 7.6% Govt. Final Expenditure Growth 3.1% 5.5% 11.7% Source: CSO, RBI, Oxford Economics PRIME RETAIL RENTS DECEMBER 2016 MAIN STREETS M.G. Road % 0.0% J.M. Road % 0.0% F.C. Road % 0.0% Koregaon Park % 0.0% Aundh % -8.3% 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 The GDP growth of India for the July-September quarter was recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a short-term blip caused by the recent currency demonetization, a normal monsoon season and impending pay hikes for government employees are likely to spur a recovery in consumer sentiments. In October, the Consumer Price Index (CPI), a key price indicator of the Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% - the lowest in 14 months on the back of lower food inflation. Consequently, there were expectations of a cut in the Repo Rate by the RBI in its policy revision in December, which however, did not take place given the slowdown in economic activity. According to the 2016 Global Retail Development Index, which ranks top 30 developing countries for retail investment worldwide, India has jumped 13 positions from last year to rank 2nd. The organised retail space (malls) in India has seen high investment activity this year as investors are bullish about the prospects of this asset class, coupled with the opportunity to list retail assets under REITs. Market Overview Limited leasing activity in malls; marginal decline in vacancy levels. The quarter was marked by limited leasing activity, with leasing concentrated in malls in Koregaon Park and Hadapsar. The leasing activity was dominated by food & beverage (F&B) retailers with brands such as Subway and Burger King expanding their footprint in the city. Amidst no fresh supply and subdued leasing, vacancy rate declined marginally to 19.5% at the end of December Mall rentals remained consistent. Mall rental values remained stable during the quarter due to sluggish leasing activity and sufficient availability in existing stock. Moderate leasing activity in main streets; rental values remained stable. Moderate leasing activity was witnessed in prime main streets at F.C. Road and M.G. Road, driven by F&B and lifestyle retailers. Rental values across all main street locations maintained their status quo except in Aundh, where they corrected by 3% quarter-on-quarter (q-o-q) due to competitive pressure from a recently launched mall in the vicinity.

16 PUNE, INDIA SIGNIFICANT LEASING TRANSACTIONS Property Location Tenant Square Feet Standalone Building F.C. Road Pizza Hut 3,000 Amanora Town Centre Mall SIGNIFICANT PROJECT UNDER CONSTRUCTION Property Location Square Feet Completion Date My Mall Hadapsar Burger King 2,500 Senapati Bapat Rd 350,000 Q Elpro Mall PCMC 400,000 Q Outlook Leasing activity in malls expected to strengthen; rentals anticipated to appreciate in select submarkets. Owing to increased enquiries from lifestyle retailers for space in malls in Aundh, leasing activity is expected to strengthen during the upcoming quarter. Hence, Aundh may witness slight appreciation in mall rental values. However, rental values in all other submarkets are expected to remain stable. Main street rentals likely to soften at select submarkets. Main street rentals at Aundh are likely to soften in the upcoming quarter owing to competitive pressure from malls in the submarket. Rentals in all other main street locations are expected to remain consistent. 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.