Bengaluru witnesses increase in leasing activity in office market ending Q3

Publication The Economic Times

IT City has witnessed increase in leasing activity in office market on quarterly basis, according to the findings of latest India Office Market View – Q3, 2018 report released by CBRE South Asia Pvt Ltd, today. CBRE is India’s leading real estate consulting firm. 

Bengaluru’s market also witnessed supply addition in the form of medium-to-large-sized non-SEZ and SEZ developments in North Business District (NBD) Yelahanka, Thanisandra and Bellary Road, and Peripheral Business District (PBD0 Whitefield, along with a small-sized non-SEZ development in Central Business District off-Infantry Road. 

PBD and East Business District (EBD) dominated leasing activity, followed by NBD. Absorption in PBD was primarily led by culmination of pre-leases in newly completed developments. Quarterly SEZ absorption increased due to primary leasing in NBD and PBD. 

Also, the leasing activity was led by tech corporates followed by engineering and manufacturing, and agile/ co-working / business center operators. Small-to-medium-sized deals dominated leasing activity, with a few large-sized deals being closed in PBD, according to the press release. 

Commenting on the findings of the report, Ram Chandnani, Managing Director, Advisory & Transaction Services, India, CBRE South Asia Pvt. Ltd. said, “Upcoming developments in the city in 2018 would consist of withheld supply, scheduled for completion in the previous quarters. We foresee culmination of pre-leases in these developments boosting demand levels in the city”. 

During Q3 2018, leasing activity improved by 12% on a quarterly basis to touch 10.9 million sq. ft. Tech corporates (with a share of 48%) drove office space take-up in the country during Q3 2018.They were followed by engineering and manufacturing companies (14%) and co-working/business center operators (11%). 

These operators took up both primary and secondary spaces in primarily core locations. Other sectors such as BFSI (7%) also contributed to the increase in leasing activity. 

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