High streets capture 63% of Chennai retail leasing in Q4 amidst mall squeeze

Fashion and apparel retailers are amongst that led the leasing activity.

Retail leasing activity in Chennai, India, shifted towards prime high streets in the fourth quarter of 2025 as limited availability in prime malls pushed retailers towards high streets, which accounted for 63% of total leasing activity.

JLL said in a report that the city recorded net absorption of 0.02 million square feet (sq ft) in malls during the quarter, taking total absorption for 2025 to 114,200 sq ft.

Fashion and apparel retailers, alongside beauty, cosmetics, and wellness brands, led leasing activity.

Most transactions took place in the Prime City and Suburbs submarkets, which together accounted for 86% of the total leased area.

No new mall supply entered the market during the quarter, leaving the city’s total retail stock at 6.9 million sq ft.

The citywide vacancy rate fell 36 basis points quarter on quarter (QoQ) to 9.7%, whilst prime malls continued to record tight vacancy levels.

Gross rents rose 2.1% QoQ to $1.07 (INR101) per sq ft per month, although year-on-year rental growth remained flat.

Premium malls recorded marginal rent increases, whilst high street rents increased as leasing activity concentrated in those clusters. Capital values increased 2.6% QoQ.

Developers are expected to add 6.0 million to 6.5 million sq ft of mall space between 2026 and 2030.

Mall of Madras in the Suburbs submarket is amongst the developments scheduled for near-term completion.

Demand is expected to continue as local and national retailers expand their presence in Chennai.

(US$1 = INR94.3)