Lifestyle Parent Pips Reliance Industries Arm To Become Top Tenant In Malls

Lifestyle International Pvt., the retail giant behind brands like Lifestyle, Max, and Home Centre, has emerged as the top commercial space lessee in India in the first half of 2024, according to an Anarock report.

The company leased a massive 19,59,783 sq. ft. of Grade A retail space, making it the largest tenant across key Indian cities, including Ahmedabad, Delhi NCR, Mumbai, Kolkata, and Bengaluru, among others.

The report, based on leasing data from Grade A malls in nine major cities, revealed a surge in demand for high-quality retail spaces.

Lifestyle International's dominance is a reflection of the growing preference for well-established brands in premium shopping centres, with the company securing more than 19 lakh sq. ft. in leases.

This is significantly higher than other major tenants in the sector, with Reliance Projects & Property Management Services and Aditya Birla Fashion and Retail following at 11,83,858 sq. ft. and 11,72,513 sq. ft., respectively.

Retail Leasing Continues To Flourish Despite Limited Supply

The retail leasing market in India continued to see robust demand, as indicated by Anarock's report, which highlights that net absorption in H1 2024 reached 3.1 million sq. ft., despite new completions being limited to just 0.6 million sq. ft.

This marks the third consecutive year where demand has outstripped supply in the retail sector. Malls across the country, especially those with Grade A ratings, are witnessing minimal vacancies, thanks to a significant volume of leasing activity.

The report also noted that apparel and accessories leasing has remained the dominant category for the past three years, closely followed by the food and beverage sector. As retailers continue to prefer smaller spaces, nearly 70% of leases in the first half of 2024 were for stores measuring up to 2,500 sq. ft.

High Demand For Premium Mall Spaces

The demand-supply dynamics in India's retail leasing market point to a steady recovery post-pandemic. The vacancy rate in high-end malls continues to decline, with malls now operating at almost full capacity due to limited supply and the growing trend of retail leasing. Brands are increasingly vying for Grade A locations in top-tier malls, which are expected to see continued interest in the latter half of 2024.