Revenue Shortfalls and Abandoned Spaces, ET RealEstate

1 month ago


<p>Representative image </p>
Representative image

CHENNAI: The Greater Chennai Corporation rents out 3,727 shops in commercial complexes in 150 prime locations, which should ideally thrive in a city known for its love of malls and shopping.

Despite being located in prime areas like T Nagar, Central, Anna Nagar, Ashok Nagar, and Alwarpet, these complexes struggle to attract customers, generating less than half of the ₹20 crore annual revenue target. Many shops remain vacant, while vendors in occupied spaces owe nearly ₹9 crore in dues but continue to operate.

Most of the GCC‘s commercial shops, ranging from 70 to 150 square feet, are rented at a subsidized rate of ₹10 per square foot. The largest complex, Moore Market near MGR Central, is in disrepair, with over 200 of its 400 shops shuttered. “This market was once a hub for old books, but e-commerce has drastically reduced footfall. We struggle to make even ₹500 a day,” said S Udhayakumar, Treasurer of the Moore Market Merchants Association.

The second floor of the complex lies derelict, with shuttered shops and debris-filled staircases. Encroaching vendors operate rent-free, while the complex earns under ₹3 lakhs monthly, far below the ₹10 lakh target. Despite a few notices, no action has been taken.

The T Nagar complex in Pedestrian Plaza faces a similar plight, with 150 of 300 shops closed. Sales in the few operational stores barely reach ₹1,000 a day, while the third and fourth floors remain abandoned and are misused for activities like alcohol and ganja consumption. In West Mambalam, the first floor of the Arya Gowda Road complex is deserted, and ground-floor shops operate without paying rent.

The unpopularity stems from GCC’s failure to modernize its complexes with global brands and diverse shopping options. They also lack basic amenities such as parking, lifts, digital signage, toilets, and proper maintenance.

“A successful complex must offer diverse experiences like cosmetics, spas, food outlets, merchandise, salons, workspaces, and event spaces to attract all age groups,” said Yuvaraj, Manager of Egmore’s Alsa Mall. “With food outlets, big brands like Naturalz, TASMAC Elite, and jewellery stores, we ensure regular footfall, backed by strict maintenance and hygiene,” he added.

“GCC should demolish and rebuild these complexes with modern amenities like glass windows, air-conditioning, and varied shop sizes to attract businesses like hotels, merchandise stores, and gaming zones for kids,” said GCC Standing Committee Chairman K Dhanasekaran. A revenue official said that a consultant has been hired to survey the shops and suggest alternatives.

  • Published On Nov 29, 2024 at 01:00 PM IST

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