Office space on outer ring road in demand

Software, consulting and outsourcing companies are entering into pre-commitment transactions along Bangalore's Outer Ring Road.

A majority of the transactions in these areas are pre-committed in projects under construction and Grade 'A' developments with large floor spaces and a good parking ratio.

According to Ram Chandnani, Head-Southern Region, South Asia of CBRE: "A large amount of special economic zones (SEZ) space has been leased or committed by corporates along the Outer Ring Road in the last four months to five months. The demand for space in this area has always exceeded the supply and thus there has been an increase in the rental values in the last quarter."

As for the supply side, with the sudden demand for Grade A office space, fresh construction and new projects have been initiated.

"Around 550,000 square feet of Software Technology Park of India (STPI) space and around 2.92 million square feet of SEZ space is entering the outer ring road market. However, most of the SEZ space has been leased or pre committed by corporates," said Chandnani.

Some of the major transactions on the Outer Ring Road are t-Systems "" 90,000 square feet, Telsima "" 40,000 square feet, JPMC "" 108,000 square feet, APC - 44,542 square feet and Avaya "" 16,250 square feet.

Some of the major transactions in south Bangalore locations include Tally "" 60,000 square feet and ICICI "" 90,000 square feet.