Malls hampered by revenue-share model
The revenue-share model had been introduced by malls during 2008 downturn to lure in retailers. However, the model seems to become a noose as retailers have been suffered from fewer footfalls and tight consumer spending.
Phoenix Marketcity in Kurla, the biggest mall in Mumbai, reportedly has still not been able to earn a single rupee in rent since it opened November last year. The mall has a total floor area of 1.5 million square feet and more than 300 stores. It has up to 85% occupancy rate with most shops leased out on revenue-share basis.
However, sales have been slow for retailers at Phoenix Marketcity and they have not been able to pay even the minimum fixed rentals.
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Commercial real estate, consumer spending, Floor area, footfalls, Kurla, Malls, Malls in Mumbai, Mumbai, occupancy rate, Phoenix Marketcity, retail industry in India, Retailers, revenue-share model, Shopping malls
