25 , March , 2026
Deciphering India’s Commercial Real Estate Transformation.
Seeing the evolving landscape, the Realty Dekho team, in an exclusive and extensive interaction with Asma Javed, Retail & Commercial Leasing Expert, delves into the transformation of India’s commercial real estate sector, covering the evolution of leasing trends, the rise of experience-led retail, the growing importance of data-driven decision-making, and the future of mixed-use developments. Here are the excerpts.
Realty Dekho (RD): How has commercial leasing in India evolved over the past
decade, and what key shifts have driven this change?
Asma Javed (AJ): Over the past decade, India’s commercial leasing landscape has matured significantly. What once felt like an opportunistic market is now far more structured and institutional. Urban expansion, rising consumption, and the rapid growth of e-commerce and delivery services have created strong demand for modern logistics parks, Grade-A offices, and organized retail spaces. At the same time, infrastructure improvements: metros, expressways, and airports have reshaped how tenants evaluate locations. Leasing structures themselves have become more professional. Agreements today are clearer, risk allocation is better defined, and occupancy costs are more predictable for both landlords and tenants.
Another important shift is the move toward mixed-use ecosystems. Businesses increasingly prefer environments where offices, retail, F&B, wellness, and entertainment coexist. These integrated spaces help drive daily footfall and create vibrant destinations rather than isolated buildings. Institutional capital has also played a major role. The entry of REITs and structured funding platforms has enabled developers to build larger, higher-quality assets, raising the overall standard of commercial real estate across India.
RD: Did the pandemic permanently change how brands approach
retail and office leasing? What major shifts did you notice?
AJ: The pandemic accelerated changes that were already underway.
Hybrid work has become the new normal for many companies, which means offices
are now designed for collaboration and experience rather than just desk space.
Brands want flexible layouts, improved air quality, and workplaces that
encourage people to come in rather than feel obligated to.
In retail, flexibility has become critical. Shorter leases,
pop-ups, and adaptable store formats allow brands to test markets without
committing to long-term space immediately. Another major shift is the emphasis
on experience-led retail. Physical stores are no longer just points of sale,
they are brand theatres where customers engage with products, events, and
immersive experiences while seamlessly connecting with online channels.
Different sectors responded differently. Essential and
everyday consumer brands remained resilient, while fashion and electronics
accelerated omnichannel strategies and experimented with more agile store
formats.
RD: What are the top factors brands consider today before
finalising a location?
AJ: Location remains the most important factor, but today it’s evaluated far more strategically. Brands closely analyse footfall potential, catchment demographics, accessibility, and long-term growth prospects of the micro-market. Infrastructure connectivity, metro stations, highways, and parking availability, often becomes a deciding factor.
The true cost of occupancy is equally critical. Rent,
maintenance, taxes, and escalation clauses are evaluated carefully to ensure
long-term viability. Flexibility has also become a key consideration. Brands
prefer leases that allow expansion, downsizing, or sub-leasing if market
conditions change. Finally, the brand fit of the location matters. The
surrounding environment, tenant mix, and overall positioning of the development
must align with the brand’s identity and customer expectations.
RD: Retail is becoming more experience-driven. How are
developers adapting their leasing strategies to support this trend?
AJ: Developers are increasingly designing retail environments
around experience rather than just transactions. Tenant curation has become
more strategic, with a deliberate mix of anchor brands, entertainment zones,
F&B destinations, and emerging concepts that keep visitors engaged.
Flexible leasing models are also gaining traction.
Short-term formats, pop-up spaces, and modular store sizes allow brands to
experiment and scale without significant upfront commitments. Design has become
a key differentiator as well. Lighting, acoustics, open social spaces, and
sustainability features are now integral to retail environments. These elements
not only improve customer experience but also signal quality and longevity to
both tenants and investors.
RD: How important are data and analytics today in making
leasing decisions?
AJ: Data has become central to commercial leasing decisions. Developers and brands now rely on analytics to assess footfall patterns, consumer behaviour, spending trends, and rental performance across locations. Tenant performance metrics: such as sales per square foot, dwell time, and conversion rates help determine optimal store sizes and rental structures. Scenario modelling is also widely used. Whether evaluating lease versus buy decisions or forecasting occupancy under different economic conditions, data helps reduce risk and guide smarter investment choices. At the portfolio level, analytics enables developers and investors to balance exposure across cities, asset classes, and tenant categories.
RD: Have you seen a shift in the ideal mix of formats (mall,
high street, logistics-led, etc.)?
AJ: Yes, the format mix is evolving rapidly. Logistics and
warehousing have emerged as one of the fastest-growing segments, particularly
around major metro corridors where last-mile delivery infrastructure is
critical. High streets continue to thrive in premium micro-markets that combine
strong local demand with lifestyle appeal. At the same time, the future
increasingly lies in integrated developments where retail, office, leisure, and
hospitality coexist. These mixed-use environments generate consistent footfall
and create destinations people visit regularly rather than occasionally.
Offices themselves are also becoming more flexible, often
incorporating coworking spaces, retail components, and lifestyle amenities
within the same ecosystem.
RD: Looking ahead, what trends will define successful
commercial developments in the next decade? give a short answer to this
question
AJ: Successful commercial developments in the next decade will
be driven by mixed-use ecosystems, experience-led retail, and smart,
tech-enabled spaces. Sustainability, flexible leasing models, and strong
connectivity will become non-negotiables, while developments that build
community engagement and lifestyle value, not just transactions, will stand
out.
