Leasing of retail space hit record 7.1 million sq ft in 2023 across top 8 cities: CBRE

Leasing of retail spaces in shopping malls and high street locations rose 48 per cent to 7.1 million square feet last year across eight major cities on higher demand from retailers, according to CBRE. The leasing stood at 4.8 million square feet in the previous year.

"The retail sector recorded an all-time high leasing in 2023, touching a historic level of 7.1 million square feet across eight cities," CBRE said in a statement.

India has emerged as one of the most promising consumer markets, indicating heightened retailers' interest in new setup, expansion and upgradation of stores, the consultant said.

"Demand for retail spaces in recently completed malls played a significant role in shaping the overall retail space occupancy during the year, and nearly 30 per cent share in total absorption was led by primary leasing in these malls," it added.

The retail space leasing in 2023 was predominantly steered by fashion & apparel, with a 32 per cent share in total leasing. This was largely influenced by mid-range fashion value and athleisure brands.

Homeware & Department stores accounted for a 17 per cent share, followed by food & beverage with a share of 12 per cent, luxury at a 9 per cent share, and consumer electronics at 6 per cent share in overall leasing during 2023.

Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said, "As we navigate global challenges, the resilient discretionary spending and robust retail consumption, coupled with easing inflationary pressures, is propelling retail leasing activity." This positive momentum is expected to continue, aligning with our anticipation for a similar trend in the years ahead, Magazine added.