Tech Firms Renewing Leases Gives fillip to Commercial Realty
Leading global and domestic technology companies have renewed their office leases, providing a much-needed fillip to the battered commercial real estate sector, even as they experiment with the work-from-home model. Occupiers are in the process of figuring out their own respective work-from-home
Published -
Sep 25, 2020 3:51 AM
Leading global and domestic technology companies have renewed their office leases, providing a much-needed fillip to the battered commercial real estate sector, even as they experiment with the work-from-home model. Occupiers are in the process of figuring out their own respective work-from-home strategies for the mid long term. However, that has not stopped many large tenants from going ahead to renew existing leases and commit to new space for consolidation/expansion needs in the major micro-markets across key cities About 17 million sq. ft. worth of office deals have been concluded in India so far this year and that figure may rise to 20 million sq. ft. by the end of 2020. Experts consider this a good number, although it is lower than the 30-35 million sq. ft. concluded annually. Accenture, Oracle, IBM, Tech Mahindra, Tata Consulting Services, Microsoft and Capgemini are among such companies that have renewed their large office lease agreements over the past two months. The lease renewals cover over 3.5 million square feet of office space in Bengaluru, Hyderabad, Pune and Mumbai. Most corporates continue to be neutral or bullish about the long term. It appears that many corporates may be balancing their space requirements by transacting space to cover their worst-case scenario while retaining the flexibility to add additional space in case of a robust recovery. Most companies have renewed their leases for nine years, indicating that India still offers compelling reasons such as cost arbitrage and high-quality talent for multinational corporations to set up offices in the country.
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