Luxury brands see incredible opportunity in India when it comes to expanding their footprints. In 2023 itself, luxury brands leased more than 600,000 square feet of retail space across various formats, a massive jump of 170% from the previous year, as reported by real estate consultant CBRE South Asia and the PHD Chamber of Commerce and Industry.
Mumbai being the front choice for commercial property leasing by brands has allowed it to record over 14% YoY for retail leasing across high streets, investment-grade malls, and standalone developments between January to June 2023. However, renting a luxury commercial space in Mumbai is a matter of cognizance. Your slight discernment won’t only get you the best deal, but you may see your brand value flourishing. To help you acquire a place filled with growth and opportunities, we are sharing 4 crucial factors that are inevitable as much time travels.
Store Location
The choice of your store’s location can make or break your brand value. Your luxury brand needs attention, and brand awareness when you are opening a store at a certain place. Since you are a brand, the location must be at the heart of the locality where you see footprints in millions and they even increase on the weekends. A posh mall or a busy commercial complex can yield returns of 12-13% compared to an average location.
Associate with Renowned & Trusted Commercial Space Owner
Choosing the right property owner can save you from endless hassles. Therefore, find a store not only at a prime location but also that has incredible social and market valuation. For instance, Apple, the popular iPhone manufacturing company, recently opened its store in Jio World Drive, Bandra-Kurla Complex, Mumbai. Associating with such a landlord will keep you away from legal challenges as every discussion will be fair and transparent, and recorded on the paper.
Lease Period
Before you negotiate rent and other expenses, ensure the lease term and commencement date are established first. The years of commencement and lease termination dates should also be stated in the contract. Commercial lease agreements are generally structured over 9 years with rent escalations every three years. Opt out if short-term leases are offered as you invest significantly in the interior makeup of the space. A luxury commercial space in Mumbai is invaluable, and so are its leasing terms.
Upkeep of the commercial space
You should review the added expenses such as repair, maintenance, and insurance as stated by the property owner. Based on the lease contract type, expenses for the common area and maintenance will be mutually shared between you and the landlord. Thus, all charges for renting the luxury commercial space must be predetermined.
Conclusion
Investing in Indian city properties ensures loyal customers and immense revenue generation. A luxury commercial space at a prime location in Mumbai is no less than mining gold, at the same you also need to keep an eye on the above-mentioned factors for a smooth business operation.
Acquire as much information as you can about your luxury commercial space in Mumbai, and even if you find something missing, “Ask An Expert”. We would be glad to answer your queries with relevant and updated information.