50 shops fall vacant at Revenue Tower despite low rents

All the 128 shops measuring between 150 sq.ft and 160 sq.ft were fully auctioned off at one time.

The Revenue Tower built by the Kerala State Housing Board in Kochi. File photo

Despite offering quality space in the heart of the city at one of the most economical rental rates, 55 shops, totally measuring 8,000 sqft, in the Kerala State Housing Board’s (KSHB) Revenue Tower near the boat jetty have fallen vacant over the past few months.

All the 128 shops measuring between 150 sq.ft and 160 sq.ft were fully auctioned off at one time.

Some surrendered the shops after their plans to sublet to third parties at a profit were thwarted by the KSHB while some Middle East-based Non Resident Keralites who rented shops as a guarantee against their increasingly unstable stay vacated them once things stabilised there. Some others were evicted after they failed to clear the rent dues.

Shops that have fallen vacant in the basement and the first and second floors are priced at Rs. 30 to Rs. 40 per sq.ft, which is lower than the lowest rate elsewhere in the city. In contrast, 70,000 sq.ft in the office section remains completely occupied bringing in a monthly rent of Rs. 21 lakh.

KSHB sources refuted allegations of scarce parking space as one of the reasons for not finding takers for the space. “We have space for about 100 cars and double that space for two-wheelers, which is more than the requirement as per the municipal building rules. But it is impossible to accommodate vehicles of everyone at Kochi Metro Rail Limited’s office and every officer attending a meeting at the City Police Commissioner’s office,” a senior KSHB official told The Hindu . Both these offices function out of the Revenue Tower.

Even while claiming that there has been a spurt in inquires of late, KSHB sources admit that better promotional activities would have made things better.

The Revenue Tower had been in the news for all the wrong reasons ever since its construction commenced in 1995 and was eventually completed 12 years later. The delay in executing the project and modifications including structural glazing and centralised air conditioning further jacked up the cost.

The final construction cost of Rs. 25 crore for 1.60 lakh sq.ft at the rate of Rs. 1,562 per sq.ft was still lower than the cost of a similar building anywhere else, the official said.