With prospective customers shying away, retailers have been forced to postpone new ventures.

A 20-25 per cent reduction in rent and an alarmingly large number of vacant shops around the tricity also point to the advent of a commercial slump.

Real estate experts say all calculations of multi-national companies, including the international brands, have gone awry leaving every one looking for cheaper options or staring at closure. “To beat competition, companies rented showrooms in Sector 17 at a price three to four times higher than the prevailing rate just six months ago.

Now, these same companies have started renegotiating rentals with owners seeking reduction in rates,” said real estate consultant Mangat Rai Baboota.

Several major international brands have even gone to the extent of relocating their outlets to cheaper locations.

“The manifestation of global market fears is clearly seen in Sector 17. Reebok has vacated its showroom while others like Adidas and Dockers are ready to move out from the sector due to the widening gap between the exorbitant rentals and meagre profit margins,” said Baboota.

Some companies have scrapped the idea of opening outlets. “I had signed a contract to rent out my showroom to a franchisee of an international brand and spent a couple of lakhs on renovation and fixtures.

But to my surprise, the party has refused to go ahead with the deal,” said the owner of a showroom in Sector 19 C.

The ‘exodus’, combined with little expectation of new ventures, has forced owners to reduce the rentals.

“Vacancy in major sectors like Sector 8 and 9 in Chandigarh and Sector 11, 8, 9 and 10 in Panchkula has increased in the last six months while rentals have declined by around 20-25 per cent. In Sector 17, where the average rentals touched Rs 450-500 per square foot, the rates have reduced to around Rs 300 per square foot in the last two months.

Not only Chandigarh, rent has reduced in Mohali and Panchkula too,” said R P Malhotra, general secretary of Property Owners’ Welfare Association.