ASCENDAS india trust ANNUAL REPORT 2014/15
3 Commercial Real Estate (continued)
Commercial corridors in Chennai
Micro-market
Locations
Description
CBD
Anna Salai,
Nungambakkam and
R.K. Salai.
As of 2014, the CBD market has a total stock of approximately
14.8 million sq ft. The vacancy rate during 2014 was estimated at
11.9%. The CBD market has limited supply of Grade A buildings
and command the highest rental in Chennai market due to limited
availability. During 2014, the CBD market attracted rentals in the
range of 70-80/sq ft/month.
Off-CBD
T.Nagar, Alwarpet,
Kilpauk
These markets account for approximately 9.8 million sq ft of stock.
Off-CBD markets registered a vacancy of around 9.7% during 2014
and rentals were in the range of 55-65/sq ft/month.
Suburban Markets
Guindy, Taramani-
Perungudi (OMR) and
Ambattur clusters
These clusters are the emerging office markets with significant
demand. With limited availability of space in CBD and off-CBD markets,
suburban markets are registering buoyant demand from occupiers.
Stock in suburban markets was estimated to be around 35.2 million
sq ft during 2014. Vacancy was registered at 11.7% during 2014 and
rentals ranged between 45-65/sq ft/month in the Guindy, Taramani-
Preungudi market and 25-30/sq ft/month in the Ambattur market.
Peripheral Markets
Locations after
Thoraipakkam in OMR
and after Perungalathur
in GST
While GST has very limited stock of office buildings, OMR has ample
stock of the same. The stock in these markets was estimated to be
around 13.7 million sq ft. Vacancy in these markets as of 2014 was
approximately 25.4%. Due to limited demand for office space, these
markets have relatively higher vacancy levels. Office rentals in the
peripheral districts ranged between 25-40/sq ft/month.
Source: C&W Research
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C h e n n a i C omm e r c i a l M a r k e t O v e r v i e w
