Kolkata: The city’s retail leasing touched a quarterly record high in Q3, with volumes reaching 1 lakh sq ft. This marked more than a twofold rise on a quarterly basis and a 69% rise compared with the same period last year. The previous high was recorded before the pandemic, in 2020.A study released by real estate consultancy firm Cushman & Wakefield showed that high streets continued to dominate leasing activity in Kolkata, accounting for 94% of the total figure this quarter. The trend was driven by extremely limited availability in Grade A malls, where vacancy remained as low as 1%. With no new Grade A mall supply expected until the middle of next year, retailers continued to focus on prominent high-street locations across the city.Key high streets, such as Theatre Road, Camac Street, Russell Street, Middleton Row, Gariahat, Naktala and Rajarhat, recorded healthy space take-up, led by fashion, accessories and lifestyle, and department store brands. Mall leasing accounted for just 6% of quarterly leasing volumes, with select fashion, consumer durables and IT, and accessories and lifestyle brands taking up space across existing malls. In terms of sectoral activity, fashion and department stores, each contributed to around 39% of Q3 leasing volumes, while F&B accounted for a 6% share.In the first three quarters of the year, Kolkata recorded retail leasing of 2.1 lakh sq ft, reflecting a 46% increase over the same period last year. High streets accounted for 87% of leasing during this period, while malls contributed to the remaining 13%.The city saw no new mall completions in Q3. A Grade B mall in south Kolkata is expected to be completed in the last quarter of the year, while a Grade A mall currently under construction is likely to enter the market by the middle of next year. With Grade A mall vacancy expected to remain tight until the first half of next year, high-street leasing is likely to stay strong.High-street rentals also continued to rise. CBD locations, such as Elgin Road and Theatre Road, recorded a 12% quarterly increase and a 5%-6% annual rise in rentals. Gariahat, Kankurgachhi, VIP Road and Hatibagan registered an annual rental appreciation of 4%-7%. Quoted mall rentals remained unchanged during the quarter.Cushman & Wakefield executive director & head east (Tenant Representation) Santanu Ghosh projected the arrival of many luxury brands next year following the launch of the nearly 10 lakh-sq ft Phoenix Grand Victoria. The 4 lakh-sq ft Acropolis South in Joka is also pegged to start operations next year. “Kolkata has an appetite for at least seven-eight large malls,” he said.
