7 months ago
2
Chennai’s retail marketplace maintained a steadfast momentum successful the 3rd 4th of 2025, signaling a leasing measurement of 0.16 cardinal quadrate feet, a year-on-year maturation of 8%.
Main streets dominated leasing enactment with an 88% share, signaling 0.14 cardinal quadrate feet of leasing — up by 29% implicit the erstwhile quarter, according to information shared by Cushman & Wakefield, a existent property services firm, arsenic portion of its Q3-2025 Retail Marketbeat Report.
The Off-CBD (Central Business District) sub-market led leasing enactment with a 29% share, followed by Suburban South (25%). Prominent precocious streets specified arsenic T. Nagar, Anna Nagar, ECR, and Purasawalkam accounted for astir fractional of the full demand.
Sector-wise, the nutrient and beverages (F&B) conception led with a 24% share, followed by accessories and lifestyle, astatine 22%. Domestic brands continued to predominate leasing enactment successful Q3 with a 74% share, portion planetary brands strengthened their presence, capturing 26% — treble their stock erstwhile compared to the aforesaid play successful 2024.
During the quarter, Decathlon leased 20,000 sq.ft astatine Pondy Bazaar, and StyleUp took 12,000 sq.ft abstraction connected the East Coast Road. Malls recorded a leasing measurement of 0.02 cardinal sq.ft successful Q3, with the north-west sub-market accounting for 58% of the activity, followed by south-west astatine 23%.
In this peculiar quarter, request was led by F&B, Fashion and CDIT brands. The wide promenade vacancy declined marginally by 20 bps to 13.36%. Superior-grade malls continued to grounds precocious occupancy levels, with vacancy remaining tight, astatine 1%-2%.
The study besides pointed retired that Grade A malls recorded a humble rental summation during the 3rd quarter, driven by constricted abstraction availability and dependable demand. Among main streets, locations specified arsenic Anna Nagar 2nd Avenue, Pondy Bazaar, Usman Road (South), Velachery, and Ambattur (MTH Road) recorded a quarterly rental maturation successful the scope of 3%-10%. Rental appreciation is expected successful cardinal main streets implicit the coming quarters, driven by sustained request from home brands.
