Is it the kind of correction we need in the retail segment? In Kolkata, retail sector seems to be in problem. With inflated real estate prices which are not matching to returns in retail sector, and all round protest against organized retail in Bengal, developers are converting their commercial retail space into office space.
Park Street tower that was meant to be Calcutta’s first exclusive mall for women, turned it into an office address. The Gariahaat Mall, which flopped as a retail destination, is reinventing itself as an office. The latest high-profile conversion from retail to office space is DLF’s proposed Grand Mall in New Town, Rajarhat. These are some of the many cases of conversion in Kolkata.
“There is no denying the fatigue factor in retail at the moment. A lot of retailers may have ramped up their businesses too fast. On the other hand, the demand for premium office space has grown manifold,” said Ajay Khanna, the managing director of DLF Retail Developers Ltd.
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Rajeev Damani
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September 22nd, 2008 at 10:54 am
That’s definitely a “way-out”.
And likely to bring down the still boiling office-estate rates.
Just two questions, that specific and relevant to Kolkata.
One, which are the “organisations” lining up for getting these newly rechristened office spaces?
Two, after Ms. M Banerjee’s genuine efforts to turn the state economically paraplegic, how many poetntial offices are likely to occupy these?
September 22nd, 2008 at 12:55 pm
Hi Arnab,
That was something striking my mind too. The protest again Nano has discouraged many companies from trying anything in Bengal. Infosys is also deciding to close up in Kolkata and many retailers are also thinking same. Let’s see whether this new funda works or it will result into another headache for developers.