The Experience Imperative
India's top-performing malls of 2023–24 share a common characteristic: a deliberate shift from pure retail to experience-led destinations. Footfall in experience-anchored malls grew 18% YoY versus 4% for conventional retail-only malls. India Gully's retail leasing practice, active across 8 mall and mixed-use developments, has observed this shift directly in tenant demand, lease terms, and CAM contribution.
Tenant Mix Recalibration
The optimal tenant mix for a Grade-A mall in India's Tier 1 cities in 2024 is:
- F&B and dining: 25–32% of GLA (up from 18–22% in 2018)
- Entertainment and leisure: 12–18% (up from 8–10%)
- Fashion and apparel: 28–32% (down from 42–48%)
- Beauty and wellness: 8–10% (up from 4–6%)
- Technology and electronics: 6–8% (stable)
- Other specialty: Balance
F&B as the Revenue Engine
Food and beverage has emerged as the highest-performing and most resilient category in Indian retail real estate. India Gully's active F&B leasing at Entertainment City, Gardens Galleria, AIPL Joy Street, and Hyatt Andaz demonstrates:
- F&B tenants command 12–22% higher base rent than comparable retail per sq ft
- F&B revenue share clauses generate 35–40% of total mall revenue participation receipts
- F&B anchor draws from a 25–35km catchment versus 15–20km for fashion retail
Lease Structure Innovation
Experience-economy leasing requires structures different from conventional minimum guarantee + revenue share:
- Turnover linked leases: Base rent at 60–70% of market, high participation above turnover threshold
- Fit-out contribution: Landlords increasingly contributing 15–25% of fit-out cost for anchor F&B and experience tenants in exchange for longer leases
- Activity covenants: F&B and entertainment leases now include minimum operating hour and event programming obligations
India Gully's Retail Practice
India Gully's retail leasing team has placed 30+ brands across India's premier mall and mixed-use developments. We bring both demand-side (brand relationships) and supply-side (developer advisory) perspectives to every mandate, ensuring optimal outcomes for all parties.