B'luru leads office space leasing
DH News Service, Bengaluru, Jul 11 2017, 0:06 IST
Bengaluru is among the leading cities in the leasing market for office spaces. Representative image.
Despite a downward trend in GDP growth during the quarter ending March 2017, leasing activity remained strong, led by Bengaluru, Hyderabad and Delhi-NCR, which together claimed a share of over 70%, according to a CBRE report.
Office space take-up recorded a quarterly growth of 28% to touch 10 million sq feet. Bengaluru and Hyderabad, a new entrant into the top three, dominated large-size deals closure from occupiers from the IT/ITeS and BFSI sectors. In Bengaluru, it was concentrated in non-SEZ developments, while primary leasing dominated transaction activity, driven by the culmination of several large-sized pre-commitments in newly completed developments.
According to the report, leasing activity more than doubled in Bengaluru. More than half of such activity was concentrated in Sarjapur-outer ring road (ORR), followed by the peripheral business district (OBD) of Whitefield and Electronic City, and the extended business district (EBD).
Bengaluru also led quarterly supply of office space addition, which accounted for about 8.2 million sq feet during the quarter. Bengaluru and Hyderabad, cumulatively added about 60% office space.
Supply completions in Benglauru featured one large-sized SEZ on ORR, and several medium to large-sized non-SEZ developments acrosss Palace Road, CBD; Old Madra Road, EBD; Outer Ring Road (ORR); and Whitefield and Electronic City (PBD).
Rental values saw an uptrend owing to limited space availability coupled with sustained occupier interest. It marked a rise of about 2-6% across ORR, PBD, SBD (South Bengaluru) and NBD (North Bengaluru).
Ram Chandnani, Managing Director — Advisory and Transaction Services, CBRE South Asia added, “India’s office market continues to perform well despite uncertainties among global corporates in the recent past. Occupiers continue to future proof their portfolios and hedge against future rental escalations by pre-leasing space across various cities. Occupiers, while expanding their footprint across the country and implementing their expansion plans, are also expected to keep a strong check on space utilization ratios and innovations in workplace strategies. The use of ‘co-working spaces’ is expected to rise, with the concept being adopted not only by start-ups and individuals, but also by organizations with fluid expansion/occupation plans.”
Office space take-up recorded a quarterly growth of 28% to touch 10 million sq feet. Bengaluru and Hyderabad, a new entrant into the top three, dominated large-size deals closure from occupiers from the IT/ITeS and BFSI sectors. In Bengaluru, it was concentrated in non-SEZ developments, while primary leasing dominated transaction activity, driven by the culmination of several large-sized pre-commitments in newly completed developments.
According to the report, leasing activity more than doubled in Bengaluru. More than half of such activity was concentrated in Sarjapur-outer ring road (ORR), followed by the peripheral business district (OBD) of Whitefield and Electronic City, and the extended business district (EBD).
Bengaluru also led quarterly supply of office space addition, which accounted for about 8.2 million sq feet during the quarter. Bengaluru and Hyderabad, cumulatively added about 60% office space.
Supply completions in Benglauru featured one large-sized SEZ on ORR, and several medium to large-sized non-SEZ developments acrosss Palace Road, CBD; Old Madra Road, EBD; Outer Ring Road (ORR); and Whitefield and Electronic City (PBD).
Rental values saw an uptrend owing to limited space availability coupled with sustained occupier interest. It marked a rise of about 2-6% across ORR, PBD, SBD (South Bengaluru) and NBD (North Bengaluru).
Ram Chandnani, Managing Director — Advisory and Transaction Services, CBRE South Asia added, “India’s office market continues to perform well despite uncertainties among global corporates in the recent past. Occupiers continue to future proof their portfolios and hedge against future rental escalations by pre-leasing space across various cities. Occupiers, while expanding their footprint across the country and implementing their expansion plans, are also expected to keep a strong check on space utilization ratios and innovations in workplace strategies. The use of ‘co-working spaces’ is expected to rise, with the concept being adopted not only by start-ups and individuals, but also by organizations with fluid expansion/occupation plans.”
