Around 7,400 Office Leases Up For Renewal in 2021
Over 7,400 leases spanning approximately 90 mn sq ft area will come up for renewal in 2021 across the top six commercial real estate hubs across the country- Bengaluru, Mumbai, Pune, Chennai, Gurugram and Noida, Industry data and ANAROCK Research said. Also, 2021 has the highest lease expiry pipe
Published -
May 14, 2021 3:46 AM
Over 7,400 leases spanning approximately 90 mn sq ft area will come up for renewal in 2021 across the top six commercial real estate hubs across the country- Bengaluru, Mumbai, Pune, Chennai, Gurugram and Noida, Industry data and ANAROCK Research said. Also, 2021 has the highest lease expiry pipeline when compared to the next two years – 2022 and 2023. Year 2022 will see nearly 7,000 leases for approximately 78 mn sq. ft. come up for renewal, and approximately 4,200 leases for over 55 mn sq. ft. in 2023. Of the approximately 7,400 leases expiring in 2021, Mumbai has the highest share at about 44%, followed by Pune with a 17% share. These two cities have been among the worst-affected by the second wave. The impact on leasing activity there over the year bears watching, it said. The total number of leases coming up for renewal in 2021 account for 90 mn sq ft. area. Interestingly, in terms of area, Bengaluru has the largest share at about 37%, with Mumbai coming in a distant second with a share of about 19%, it added. Of the total number of leases coming up for renewal in 2021, Chennai comprises a 5% share - in terms of overall area, it has 12% share. Gurugram has a 15% share each in terms of number of leases due for renewal and total area. Noida has the least number of leases due for renewal, comprising a mere 3% share of both total lease numbers and the overall area. “The office market has been under strain since the pandemic came in. However, the IT/ITeS sectors have been on a hiring spree in 2020 and 2021 due to massive business accruals. To accommodate these employees in a future when we see a gradual return of employees and adoption of hybrid workplace practices by Infotech giants, office space demand will grow,” said Prashant Thakur, director and head – Research, ANAROCK Property Consultants.
Tags : News/Views Mumbai Pune Bengaluru Gurugram Noida Chennai office market Industry Lease Office Anarock Research Renewal