Is commercial space in Mysore costlier than in Bangalore?

Are commercial spaces in Bangalore cheaper when compared to Mysore? If one analyses the rents being commanded by commercial spaces in TTMCs of Bangalore Metropolitan Transport Corporation (BMTC) in Bangalore and Karnataka State Road Transport Corporation (KSRTC) in Mysore, it appears so.

While the maximum rent for commercial space at the most happening place in Bangalore (Jayanagar 4 Block TTMC) is a meagre Rs. 25 per sq ft, commercial space at the KSRTC suburban bus terminal in Mysore has been leased out at Rs. 38 per sq ft.

The corporation created this commercial space under JNNURM funding and constructed a three-storeyed structure with parking facility at the basement.

Attractive

Ramesh Babu, a realtor in Mysore, said that the rates KSRTC received has been the most attractive in terms of bulk leasing of commercial spaces even though small commercial spaces in central Mysore recently started to command rents ranging from Rs. 60 to Rs. 100 per sq ft.

A senior KSRTC official with the project told  that about one lakh sq ft commercial space at the TTMC has been leased out to an asset management company. The corporation gets Rs. 4.56 crore lease rental per year from this lease.

Design modification

The asset management company has been given some portions in the ground floor, the entire first and second floors of the TTMC. The company, in turn, has sub-leased them to a prominent retail chain, the official said.

To attract more contenders, the KSRTC introduced suitable changes in the design so as to suit a retail space, the official said. Provisions for escalators have been made in the TTMC structure thereby enhancing its lease potential.

Independent of this mega lease, KSRTC has given eight shops on the ground floor on small leases at rents ranging from Rs. 300 to Rs. 400 per sq ft.

These shops face the main road and attract more customers. While the cost of construction is about Rs. 28 crore, the corporation is hopeful of achieving the break-even in about six years.

Meanwhile, another four TTMCs under construction in Mysore have been designed to accommodate retail chains so that KSRTC does not lose money.

The TTMCs are coming up at Satagalli, Ilavala, R.S. Naidu Nagar and Chamundi Hills.