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Rental to go down for new players

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With down going property sale the new retailers are still waiting for their turn of price correction from the developers but no such deal is frequent as per the source of www.propeprtykhazana.com. As a result most of the retail units has acquired the rental space from the developers to make a mid way solution for the indecisive rental corrections. This is an added blow to realty groups to earn profits by renting the space to the retailers.
“The company is making many positive negotiations with the owners with around 30 percent for the topic of rental issues” as stated by spokesperson of Reliance retail. Chairman of Knight Frank – Pranay Vakil states that the main deduction of the rentals might flow around 10 percent to that of 35 percent and might also reach 40 percent as per the condition of the location. As per the source of www.propertykhazaana.com, it was known that the most profitable group Aditya Birla does not hesitate to replace the location if the price tag of the rentals does not match with the condition of the company. CEO of Aditya Birla Retails – Thomas Varghese has revealed at the www.propertykhazana.com that “we don’t make any deep down rates in rental but a win line for both the teams will be solicited going through the locations”.
On another note CEO of Future group states that “the total rental of the company covers up to 6 per cent of the total sales of the company and is looking forward to make it lower”. Among the other plans of the company this impacts a lot to the company’s balance sheet at the end of the each financial year. For more updates visit www.propertykhazana.com.
Source: NBTVLIVE

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