Main streets rule Kolkata’s retail space transactions in Q3 2024
Kolkata: In the absence of new supply of malls, main streets in Kolkata drove retail space leasing volumes in the third quarter (Q3) of 2024, accounting for around 98 per cent of quarterly leasing volumes with Esplanade area topping the chart in key-lease transactions.
According to a report by the global real estate services firm, Cushman & Wakefield, Kolkata recorded retail leasing volumes of over 53500 sqft in Q3, an 11 per cent growth on an annual basis. In continuation of a trend over the past several quarters, main streets drove leasing activity amidst less Grade A mall supply.
The report revealed main streets accounted for around 98 per cent of quarterly leasing volumes across all key locations such as Park Street and Esplanade Central Business District (CBD), Gariahat (suburban south), Rajarhat (peripheral north east) and Garia (peripheral south).
Some of the properties which featured in key appease transactions in Q3 2024 are at Esplanade, Thakurpukur, Garia, Park Circus and
Gariahat. Esplanade leased out about 17000 sqft to Style Bazar which was also leased space at a property in Thakurpukur of 13000 sqft. It was learnt that fashion was the dominant retail segment, accounting for 80 per cent of quarterly leasing volumes followed by accessories and lifestyle segment, including jewellery and cosmetics brands, with a share of 9 per cent.
In terms of rental growth, across prominent CBD main street locations such as Camac Street and Theatre Road rentals remained unchanged on a quarterly basis. Suburban locations, including Gariahat and Kankurgachi and peripheral locations such as Garia and Rajarhat recorded rental growth of 2-3 per cent on
a Q-o-Q basis.
However, Kolkata recorded no new mall completion in Q3 with delay in the completion of a greenfield mall being constructed at Joka. Consequently, space demand across main streets is likely to remain strong given the extremely tight vacancies in the city's Grade A malls. Overall city-wide headline mall vacancy remained unchanged at 6.8 per cent in the quarter.
