Commercial Leases Worth Rs 6,800 Cr Of Annual Rent To Expire In 2021
<span style="font-weight: 400;">Commercial leases worth Rs 6,800 crore of annual rent are expected to get over in 2021 of which 1,802 are in Mumbai alone, followed by 905 in Bengaluru, a report by Propstack has said.</span> <span style="font-weight: 400;">As many as 65 percent of leases that are
Published -
Jan 25, 2021 4:20 AM
Commercial leases worth Rs 6,800 crore of annual rent are expected to get over in 2021 of which 1,802 are in Mumbai alone, followed by 905 in Bengaluru, a report by Propstack has said. As many as 65 percent of leases that are getting over this year are less than 10,000 sq ft and leases less than 1 lakh sq ft make up 25 percent of the rentals, it said. As many as 19 percent are for offices that are spread across 10,000 to 25,000 sq ft; 8 percent spread across 25,000 to 50,000 sq ft, as many as 5 percent are for offices of sizes 50,000 to 1 lakh sq ft and 3 percent are offices less than 1 lakh of sq ft space, the analysis said. The total number of office space leases across the top eight cities was 4,862, it said. As many as 602 leases are expected to get over in Pune; 482 in Gurugram, 317 in Chennai, 237 in Hyderabad, 259 in Delhi, 217 in Noida and 41 in Kolkata. With India recording one of the highest WFM productivity, both city scenarios will be tested. In any case, corporate real estate will continue to evolve and every company will find a balance by combining regular office and work from home. The monthly rent was the highest in Mumbai at Rs 176 crore per month, followed by Rs 152 crore per month in Bengaluru and Rs 71 crore per month in Gurugram, he said. The maximum commercial area expiring is in Bengaluru at 26.1 m sq ft, followed by Mumbai at 15.5 m sq ft and Chennai at 10 m sq ft. The total area expiring across the top eight cities was 81.4 m sq ft, it said. Given the impact of the COVID-19 pandemic on commercial leasing, smaller companies of less than 10,000 sq ft floor plate may be exposed to higher risk this year than larger spaces of 50,000 sq ft to 1 lakh sq ft leased by big firms. The pandemic led to a temporary challenge with most companies allowing their employees to work from home for most of the year and employers reassessed their office needs and strategized for the future.
Tags : News/Views commercial Leases Rent. Expire