Shopping mall owners revenue declined by around 50 per cent during the last fiscal as the retail sector was badly hit since the outbreak of the COVID-19 pandemic in March last year, according to real estate developers and consultants. Average monthly rentals in shopping centres have softened by 4-5 per cent across eight cities, although many malls saw rent correction of up to 25 per cent, they said. Most of the mall owners, which generally leases space in their shopping malls on a revenue-sharing model with retailers having a minimum guarantee clause, gave complete rental waiver during the April-June period of 2020 because of the nationwide lockdown to control COVID.
COVID-19: Shopping mall owners income dips around 50 pc in FY21 on rental waiver
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Last Updated: May 10, 2021, 09:19 PM IST
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Most of the mall owners, which generally leases space in their shopping malls on a revenue-sharing model with retailers having a minimum guarantee clause, gave complete rental waiver during the April-June period of 2020 because of the nationwide lockdown to control COVID.
Agencies
Average monthly rentals in shopping centres have softened by 4-5 per cent across eight cities, although many malls saw rent correction of up to 25 per cent, they said.
Shopping mall owners revenue declined by around 50 per cent during the last fiscal as the retail sector was badly hit since the outbreak of the COVID-19 pandemic in March last year, according to real estate developers and consultants. Average monthly rentals in shopping centres have softened by 4-5 per cent across eight cities, although many malls saw rent correction of up to 25 per cent,
COVID-19 impact: Shopping mall owners revenue fell nearly 50% in FY21
Average monthly rentals in shopping centres have softened by 4-5 per cent across eight cities, although many malls saw rent correction of up to 25 per cent, according to real estate developers and consultants
PTI | May 10, 2021 | Updated 22:27 IST
The mall promoters offered huge discounts during the remaining nine months of the last fiscal as well, resulting in a huge dent in their overall income
Shopping mall owners revenue declined by around 50 per cent during the last fiscal as the retail sector was badly hit since the outbreak of the COVID-19 pandemic in March last year, according to real estate developers and consultants. Average monthly rentals in shopping centres have softened by 4-5 per cent across eight cities, although many malls saw rent correction of up to 25 per cent, they said.
Synopsis
One major attraction for retailers is the new revenue-share model that they have switched to from rentals in which they paid a high fixed monthly sum to the mall owners.
Vacancies at malls in NCR, Pune, Bengaluru, Chennai and Hyderabad have risen between 50 to 530 basis points now.
New Delhi and Mumbai: Occupancy at malls have still not reached pre-Covid level even after reduced rentals and a Covid-19 triggered churn amongst clients that saw top retailers grab marquee properties across the country, said a report by a real estate consulting firm.
Vacancies at malls in NCR, Pune, Bengaluru, Chennai and Hyderabad have risen between 50 to 530 basis points now, compared to a year ago period, according to the latest data by ANAROCK Research.