Retail space leasing in shopping malls falls 38 per cent in July to September across top 8 cities

Leasing of retail space in shopping malls fell 38 per cent to 071 million square feet in JulySeptember across eight major cities due to supply constraints according to Cushman amp WakefieldData from real estate consultant Cushman amp Wakefield showed that gross leasing of retail space in highstreet locations rose 33 per cent to 151 million sq ft in the third quarter of the 2026 calendar yearThe eight cities are Mumbai DelhiNCR Chennai Kolkata Bengaluru Hyderabad Pune and AhmedabadIncluding shopping malls and highstreet locations total retail space leasing fell nearly 5 per cent to 222 million square feet in the latest September quarter from 233 million sq ft in the yearago periodHigh street retail locations dominated leasing activities in the September quarter of 2026 accounting for 68 per cent of the total gross leasing The share of shopping malls stood at 32 per cent of overall leasingOf the eight cities leasing activities were down only in Mumbai and Pune The remaining six cities showed an upward trendDespite a fall in the September quarter total leasing of retail spaces rose marginally to 657 million sq ft in the JanuarySeptember periodGautam Saraf Executive Managing Director Mumbai amp New Business Cushman amp Wakefield said Indias retail market continues to demonstrate steady underlying occupier interest even as quality retail space remains constrainedHe noted that total leasing activities during the JanuarySeptember period rose even as the eight cities did not witness any opening of new shopping mallsThe limited availability of premium retail space is increasingly influencing the pace of leasing he saidOn the supply side he said vacancy levels in Grade A malls have tightened to below 5 per centAgainst this backdrop the 127 million sq ft supply pipeline through 2028 comes at an important point in the market cycle As this stock enters the market it should create greater headroom for brands to expand and could unlock demand currently constrained by limited options Saraf saidCommenting on the report Shriram PM Monga cofounder at property consultancy firm SRED Global said When quality mall space is scarce retailers naturally turn to high streets and this quarters numbers show that clearlyFor NCR retailers high streets are no longer simply a second choice With Grade A mall vacancy at just 48 per cent a welllocated highstreet store can offer brands strong visibility and direct access to consumers and the best addresses are being priced accordinglyThis dynamic could evolve as NCR leads the 127 MSF of new Grade A mall supply expected through 2028 he saidMonga noted that malls and high streets would work alongside each other rather than competingFor brands the practical approach is increasingly about having the right mix high streets for visibility and everyday footfall and malls for scale and a more complete consumer experience he advisedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever