Office Space Market In Bengaluru Seems To Be Highly VibrantOffice Space Market In Bengaluru Seems To Be Highly Vibrant

As we all know, Bengaluru has been a hotspot for all the major IT hubs to expand their operations. It has been the most preferred choice for many IT/ITes, ecommerce, banking and other sectors. According to a source, the IT giant IBM and the UK based auditing and consulting Major EY, are in the process of acquiring the office space of about 500,000 sq. ft. in the different business parks of Bengaluru. The source has also confirmed that IBM is committed to take the space in Bhartiya City at Thanisandra, Bengaluru, whereas EY has taken a similar space in Bagmane Tech Park, Outer Ring Road Bengaluru.

According to the sources, IBM is expected to pay around Rs 45/ sq. ft. or Rs 27 Cr. per year as the rent, and EY is expected to pay about Rs 65/ sq. ft. or Rs 39 Cr. per year. Both the deals seem to be in line with the market prices. Ajay Malhotra, the executive director at Bhartiya groups has confirmed the news saying, an entire building of about 550,000 sq. ft. has been leased out, and majority of it is taken by IBM.

Major Office Space Deals in 2015

Though the size of office space leasing deals in Bengaluru has dropped down when compared to previous year, the numbers are increasing at a faster clip. JP Morgan, the US based banking giant recently took about 220,000 sq. ft. space at Embassy Golf Links Business Park in Bengaluru for the support centre. JC Penney, one of the largest US retailers took about 130,000 sq. ft. space at Embassy Manyata in Bengaluru.

The major office space leasing deals of Bengaluru in 2015 also include the financial giant Wells Fargo leasing about 860,000 sq. ft. space at Embassy Tech Village, the ecommerce giant Amazon leasing 555,000 sq. ft. at Constellation Business Park and the Oil major Shell leasing about 788,000 sq. ft. space at RMZ Eco World. All the three sites are in the Outer Ring Road.

Ashok Kumar, the Chief Executive of Cresa Partners says that, Bengaluru being the first choice for Multinationals entering India, leases about 3 million sq. ft. office space every quarter. He also says that, the eco system, climate of the city and mainly the availability of quality spaces, have been the reason for multinational companies choosing Bengaluru to expand their operations.

Anuj Puri, the chairman and country head at JLL India said that, Bengaluru has reached a significant height as a commercial real estate destination, because of which it tops the JLL City Momentum Index rankings for Asia Pacific. According to Anuj, it's mainly because of the city's rapid growth in technology and global connectivity.Both the deals seem to be in line with the market prices. Ajay Malhotra, the executive director at Bhartiya groups has confirmed the news saying, an entire building of about 550,000 sq. ft. has been leased out, and majority of it is taken by IBM.

With the total office space absorption of 13.43 million sq. ft. and new constructions of about 12.85 million sq. ft. Bengaluru continues to be in the first position when it comes to total office space absorption and new supply, among the major cities in the country.

by Pamela Joe
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I'm Pamela working at Commercial Office Bangalore and interested in real estate articles.
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