High streets take a hit because of poor infra

While Commercial Street has retained its second place in rental values,MG Road has moved to the third position,with rentals of Rs 240 per sq ft.

The road,which virtually disappeared from the retail map during the years it took to build the Metro rail,is seeing a revival.In the past year,rentals have appreciated by 25%.Brigade Road and Commercial Street have been witnessing a drop in interest from retailers due to the continuous infrastructure issues in both areas.Another major reason is the steady expansion of the citys population in other locations, says Jaideep Wahi,director,retail services,Cushman & Wakefield.

While retailers believe a presence on these two locations is important,the allure of newer high streets away from the city centre and close to large catchment areas is gaining their attention.

Allen Solly opened its flagship store on Commercial Street in May 2011 and opened its Brigade Road store in October this year.For any retailer wanting to create a large strong brand,presence in these markets is still important, says Sooraj Bhat,brand head,Allen Solly.However,going forward,Bhat says new stores will be set up in places such as Kammanahalli Main Road,Koramangala 80 Feet Road and New BEL Road.

Louis Philippe opened its first store on Commercial Street a year ago and shifted from a larger store to a smaller store on Brigade Road early this year.Jacob John,brand head,Louis Philippe,says Brigade Road and Commercial Street are still a must,but whats changed is the fact that shoppers have multiple locations.The interest from retailers to open shop in Jayanagar 4th Block and 11th Main has seen rentals shoot up by 62.5% since 2009.Rentals on Vittal Mallya Road have surged by 80.5% in the same period,while Indiranagar 100 Feet Road saw rentals rise 60%.In 2009,Brigade Road reported rentals of Rs 375 per sqft,a value that has fallen by 14%.

The other locations gaining the mind space of retailers are Bannerghatta Road,JP Nagar Ring  Road ,Puttenahalli Main Road,Basvanagudi Main Road,Sahakarnagar Main Road , Sadashivanagar , Bellary Road,BTM Layout 16th Main,HSR Layout,RT Nagar Main Road and Yelahanka New Town Main Road.

All these micro markets are high-density residential catchment areas which retailers want to tap, says Wahi of Cushman & Wakefield.

THE MALL EFFECT 

Besides the emergence of newer high-street destinations,over the past five years,the retail landscape in Bangalore has undergone a transformation,with 25 malls operating in different micro-markets.

Though Brigade Road and Commercial Street continue to be established high streets,they are no longer crucial to retailers,who now have multiple malls to choose from, says Karun Varma,MD (Bangalore & Kochi),Jones Lang LaSalle India,real estate consultants.Adds Varma: The larger footfall potential and availability of space have made malls an attractive alternative,especially to the single-brand retailers. The advantage malls have over high-street destinations is their proximity to target catchments.