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Empty malls and vacant offices

Last updated: September 15 2010
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  • Empty malls and vacant offices

    I have observed that many of the malls /offices in Mumbai are almost empty with the builder making some losses there.
    SOme of these are
    1. Akruti mall (andheri telli gally): The builder got wise even before it opened and converted to offices..but so many offices in andheri(E) are already empty with new ones adding to the supply..I think builders will be bleeding here as this segment was the cash cow accounting for regular cash flows
    1. Dreams mall : I dont why the builder maintains it..Hardly any shop is open..must be suffering huge losses..
    2. Magnet mall : under construction for a long long time and i guess other than metro cash n carry ..its totally losses for the builder .
    3. Citi Mall : ANother flop mall after infinit opened up
    4. Infiniti : Shut most of the time due to fire, cave-ins etc
    5. Crossroads also flopped

    However there are some sucessfull malls like inorbit ,phenix, hiranandani powai mall,r city

    Could you put in some updates about the malls / commercial property scene in your area
  • #2

    #2

    Re : Empty malls and vacant offices

    Even Atria has many empty shops. , Jumbo, JBL, Sonodyne etc have shut shops a year ago and the same are lying empty still.

    In Vashi, Palm Beach Galleria, City Center, Center One and Raghuleela are almost empty. They get some crowd because of multiplexes. Raghuleela has Big Bazaar advantage.
    Last edited September 11 2010, 10:30 AM.

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    • #3

      #3

      Re : Empty malls and vacant offices

      Heera Panna in Oshiwara .. deserted .. so much so that the "investors" who could not find any takers for their shops got together and stopped the airconditioning because the expenses were too high .. killing any possibility of footfalls . .except Gym .. and a couple of restaurants nothing was really open last time I went there.

      Citimall's been dead for a while now
      MegaMall is crowded but more for the food court and Foodbazar than anything else I guess .. there is no co-relation betn the kind of crowd that comes in and the category of high street fashion stores they have opened ... most stores are surviving on sales. In fact, I got talking with the staff of one of the shoe stores that closed down recently .. seems they were paying some Rs. 1 lakh in rent.

      G7 mall in Seven bunglows .. has seen in ready fo almost 3 years now .. not sure if any stores have opened .. anyways the location is so screwed up .. one might just get killed getting in / out of there

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      • #4

        #4

        Re : Empty malls and vacant offices

        Oberoi Mall at Goregaon is rocking.

        I guess the malls where the builder still owns the spaces and is only leasing it out are doing well. They ensure that they have a right mix of regular and high end brands so that a wider audience is attracted. Also, enough entertainment and food options are a must for a mall to succeed.

        Malls where the builder is selling away the space to investors & some end users are the ones which are dead. Even in Bandra W the mall scene is quite pathetic.

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        • #5

          #5

          Re : Empty malls and vacant offices

          A mall needs to be operated and managed by its owners/promoters because it is hardly or never used by investors who have bought the space. Investors are only interested in returns, owners with a long term vision are interested in running the property successfully and then making money thru leasing etc.

          A great looking mall without right operations is like an imported car without fuel

          where an average mall which is better managed will be far more successful.
          MM

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          • #6

            #6

            Re : Empty malls and vacant offices

            Is this not all to do with gauging the demand.

            Inorbit, Oberoi, Raghuleela, Nirmal Lifestyle, R-City, Huma, etc are all doing well because there is huge population in these areas. The BMC should fast realise that the suburbs are where the people are. Having said that there is still excess of mall space. What is needed in more commercial office space at cheaper rates.

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            • #7

              #7

              Re : Empty malls and vacant offices

              I remember I talked the builder of Dreams mall for purchasing a gala about 2 yrs back. Finally I decided against it!

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              • #8

                #8

                Re : Empty malls and vacant offices

                Originally posted by buy2gain View Post
                I remember I talked the builder of Dreams mall for purchasing a gala about 2 yrs back. Finally I decided against it!
                That is why you are called Buy2Gain and not Buy2Lose

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                • #9

                  #9

                  Re : Empty malls and vacant offices

                  You can call me Bu2Lose!

                  I purchased in one of the lousiest Malls in India. Eternity Mall in thane. It should not be called Mall at all. I was fortunate to sell it finally last Dec. Absolute Loss making transaction. Had I invested ANYWHERE else, I would've made twice or thrice the amount of money. I recovered tad bit more than what I'd invested in 2003 end. So, no growth at all in 6 years when we had one of the greatest bull run in property market all over India!

                  In one of the seperate discussion thread mamba was explaining at great length using formulas when you should buy / lease, etc. Nowhere I saw a factor called - Luck in there!

                  Originally posted by jadhav_ravi View Post
                  That is why you are called Buy2Gain and not Buy2Lose
                  Last edited September 14 2010, 06:10 AM.
                  Mitti se aya hai... mitti mein mil jaayega!
                  :bab (65)

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                  • #10

                    #10

                    Re : Empty malls and vacant offices

                    Just so that everyone understands, Eternity Mall did not fly since its design is pathetic, which is why I said earlier it should not be called Mall at all. Its like walking into Heera Panna shopping center. It was one of the earliest malls.

                    You learn these things hard way.

                    It's getting converted into office space now. One of the co-buyer told me this some time in 2005 / 2006 (when very few shops were opening there), gradually from Mall it will be sold as office space and if that also doesn't happen then it will be sold as godown space. Imagine that! I felt earth slipping away under my feet (I can laugh now that I have dumped it)
                    Mitti se aya hai... mitti mein mil jaayega!
                    :bab (65)

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