Office Leasing

Indian companies have overtaken American firms in gross leasing of office space for the first time, with almost a 50 per cent share in the total demand, according to CBRE India. In its report released on Thursday, CBRE said that the gross leasing of office space rose 40 per cent in 2022 to 56.6 million square feet across nine major cities from 40.5 million square feet in the previous year. Out of the total absorption of office space in 2022, 27.73 million square feet area was leased by domestic firms while 20.37 million square feet by American companies, according to CBRE. The total gross leasing of office space in 2022 was the second-highest leasing activity ever after it touched the peak in 2019 with a 65 million square feet area. "In a first, domestic firms overtook American firms in annual leasing, accounting for nearly half of the leasing share in 2022, mainly led by flexible space operators, technology corporates and BFSI firms," CBRE said. Bengaluru, Delhi-NCR and Mumbai ..

Experts cite global headwinds for the month-on-month dip

In spite of ebbing growth momentum, commercial leasing activity is likely to grow at a healthy 10-15 per cent this fiscal and the next, a report said on Wednesday. At this growth rate, commercial leasing space will touch 28-30 million sq ft (msf) this fiscal and grow further to 31-33 msf, riding on the improvement in demand as more and more employers are going back to working from office, the report by Crisil said. It added that even at this rate of growth, demand will be below the pre-pandemic high of 42 msf in fiscal 2020, but within sniffing distance of fiscal 2019 level of 34 msf. This is attributable to growing global recessionary headwinds and slower hiring in technology companies, subduing demand growth. It also said credit profiles of commercial realtors will continue to be healthy during these two years, backed by adequate leverage. The report is based on an analysis of players with over Rs 63,000 crore debt and total leasable area of 170 msf. Grade-A office space has an

Bengaluru leads in terms of space leased by such companies, says JLL report

The total leasing of office space, which comprises demand for all grades of buildings, fell 21 per cent year-on-year in October across seven major cities to 6.7 million square feet on lower demand, according to property consultant JLL India. The aggregate office market leasing activities refer to transactions for all grades or types of buildings in the top 7 cities (Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata). The data includes confirmed pre-commitments and term renewals. Deals in the discussion stage are not included. Total office leasing activities stood at 8.5 million square feet in August 2021. As per the data, Mumbai with a 65 per cent share of monthly leasing activity clearly leads the way, mainly due to strong demand for space coupled with select significant renewals during the month, followed by Delhi NCR and Pune. These three cities accounted for nearly 93 per cent of all leasing activity in the October 2022 monthly leasing activity tracker. The ..

'If there is an IT slowdown, we see demand consolidating with branded, listed players like ours as a flight to quality'

The total leasing of office space for all grades of buildings rose 37 per cent year-on-year in September across seven major cities to 6.3 million square feet on better demand, according to property consultant JLL India. The aggregate office market leasing activities refer to transactions for all grades or types of buildings in the top 7 cities (Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata). The total leasing of office space stood at 4.6 million square feet in September last year and 3.9 million square feet in the previous month, according to JLL India Aggregate Monthly Office Leasing Tracker. The data includes confirmed pre-commitments and term renewals. Deals in the discussion stage are not included. Mumbai, Delhi-NCR and Pune were the top three cities, accounting for three-fourth of all leasing activities in September 2022. The BFSI (Banking, Financial Services and Insurance) sector emerged as the strongest driver of aggregate market activities in September

Adani Enterprises has given on lease 4.64 lakh square feet of space at its data centre in Noida to Raiden Infotech, an entity of Google, for Rs 11 crore monthly rent, according to documents accessed by CRE Matrix. The documents, accessed by the data analytics firm, showed that D C Development Noida Ltd, which is part of Adani Enterprises Ltd, has leased 4,64,460 square feet of space at Adani data centre in Sector-62, Noida for a period of 10 years. The rental is Rs 235 per square feet per month. The starting annual rent is Rs 130.89 crore and there will be 1 per cent increase in the rental every year. The lease agreement was signed last month, the documents showed. Email queries sent to Adani Group's flagship firm Adani Enterprises and Google remained unanswered. In February 2021, Adani Enterprises had formed an equal joint venture with leading global data centre operator EdgeConneX to develop and operate data centres throughout India. To start with, the JV had announced building

Office absorption has already touched 40.6 million sq ft during the first three quarters of Calendar 2022, up two fold over the same period last year, which was marked by Covid-19 induced lockdowns

As per the data, transaction volumes for offices have gone up but the rental levels have also stabilised or grown in YoY and sequential terms across all markets.

Leasing of flexible workspace by corporates rose 59 per cent in April-June at 28,167 desks across top eight cities as they are embracing managed office space amid uncertainties, according to Cushman & Wakefield. Enterprises had leased 17,691 seats in coworking centres in the April-June quarter of last year across eight major cities -- Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad. In its latest report on India's office market, real estate consultant Cushman & Wakefield said: "A lot of companies, including the global multinationals, have embraced the managed space concept leading to enterprise flex seat deals standing at 28,167 seats transacted in Q2-22." Bengaluru, Pune, and Hyderabad are cities spearheading the enterprise deals in flexible seats, with the three cities accounting for around 75 per cent of all deals since the start of 2021. Anshul Jain, Managing Director South East Asia and India, said the growth in office leasing indicates ...

Bengaluru leads in lease transactions and it is followed by Delhi-NCR, Mumbai, and Chennai

Leasing of office space in top nine cities rose 61 per cent during the June quarter to record 18.2 million square feet from the previous quarter on better demand, according to a report. Real estate consultant CBRE on Monday releases its office leasing data for April-June (Q2) of 2022. "...office sector leasing in India recorded the highest-ever activity with a strong performance in Q2 2022," CBRE said in a statement. The gross leasing of office space jumped 220 per cent from the same period of the last year. "The office sector in India reflected a strong recovery in H1 (January-June) 2022 as occupier sentiments were uplifted due to the relatively reduced severity of the Omicron wave, the subsequent relaxation of restrictions, and improved economic activity," Anshuman Magazine, Chairman & CEO -India, South-East Asia, Middle East & Africa at CBRE, said. He expected the annual office space absorption for 2022 to be higher than 2021. CBRE said that the absorption in H1 ...

Gross leasing of office space jumped over 2.5 fold annually in April-June across six major cities at 14.7 million square feet on lower base effect and rise in demand from corporates

Technology companies and BFSI (Banking, Financial Services and Insurance) firms are driving office space demand with contribution of 51 per cent to the total leasing in the segment during January-March period of this calendar year across eight major cities, property consultant CBRE said in a report on Thursday. In its latest report 'CBRE India Office Figures Q1 2022', CBRE South Asia Pvt Ltd said that the office sector in India continued to witness a robust recovery in Q1 2022 as leasing activity grew by 97 per cent year-on-year to touch 11.4 million square feet. "Technology corporates drove leasing with a share of about 34 per cent, followed by BFSI firms (17 per cent), flexible space operators (13 per cent), engineering & manufacturing (12 per cent) and research, consulting & analytics firms (11 per cent)," CBRE said. Bengaluru, Chennai and Delhi-NCR dominated absorption during the quarter, accounting for almost two-thirds of the transaction activity. "With the government's .

While several IT firms have shifted to a permanent 'work from anywhere' model for their staff, leasing activity was driven by tech companies, with a 34% share

An important factor in this rise in demand for office spaces is the waning of the work-from-home (WFH) narrative

Housing sales across top eight cities rose 51 per cent last year, even as the office market continued to slump due to the COVID pandemic with gross leasing witnessing a 3 per cent fall

Office space leasing dropped four per cent to 25 million square feet during January-September this year across six major cities due to adverse impact of the second wave of the COVID-19 pandemic, according to CBRE. In its report 'India Market Monitor Market' for the third quarter of the calendar year 2021, CBRE said 13.5 million square feet space was leased during the July-September quarter, up 140 per cent from the previous quarter. "Space take-up of 25 million square feet recorded in 2021 YTD (year-to-date), a marginal drop of 4 per cent year-on-year," the consultant said. Nearly 34.3 million square feet of supply addition witnessed in 2021 YTD, marginally up four per cent year-on-year, it said. Anshuman Magazine, chairman and CEO (India, Southeast Asia, Middle East & Africa) of CBRE, said, "India's real estate market has proven to be resilient over the last year. The overall outlook for the Indian real estate continues to be positive back of an accelerated vaccination drive, ...

In a Q&A, Vikaash Khdloya talks about how demand is reviving in the office space segment as it comes out of the pandemic hit