Page 2 - Office Space Leasing

53 mn sq ft office space eligible to be monetised via SM-REIT for Rs 70K cr

Rating agency ICRA has estimated that around 530 lakh square feet of office spaces are eligible for small and medium REITs (SM-REIT) listing, creating a monetisation opportunity of Rs 67,000-71,000 crore. In November last year, the Sebi board cleared the amendments to the REITs Regulations, 2014, in order to create a regulatory framework for the facilitation of SM REITs, with an asset value of at least Rs 50 crore vis-a-vis minimum asset value of Rs 500 crore for existing REITs. As per the notification, the minimum price of each unit of the scheme of SM-REIT shall be Rs 10 lakh or such other amount as may be specified by Sebi from time to time. The size of the asset proposed to be acquired in a scheme of the SM-REIT is at least Rs 50 crore and less than Rs 500 crore. "Small and Medium REITs will provide an opportunity for small Grade A and most of the Grade B office developers to monetise their investments. Also, Fractional Ownership Platforms (FOPs) are expected to be formalised, .

Demand for retail space in malls, high-streets may dip 15% in 2024: CBRE

Demand for retail spaces in shopping malls and high-street locations may decline up to 15 per cent this year from a record 71 lakh square feet in 2023 calendar year with retailers being cautiously optimistic, according to CBRE. Leasing of retail spaces in shopping malls and high street locations rose 48 per cent to 71 lakh (7.1 million) square feet in 2023 across eight major cities as against 48 lakh (4.8 million) square feet during the 2022 calendar year. In its report '2024 India Market Outlook', real estate consultant CBRE has projected that the leasing of retail space is expected to sustain between 6-6.5 million (60-65 lakh) square feet in 2024. It also expects a stable supply of retail spaces on completion of numerous high-quality mall developments. Around 5-6 million (50-60 lakh) square feet of investment-grade mall space will become operational in tier-I cities, the consultant said. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, .

Co-founder Adam Neumann bids over $500 million to buy back WeWork

It's not clear how Neumann is planning to line up financing for his bid

Office space demand to rise 35% in 6 cities; double in Hyderabad: Colliers

Office space demand across six major cities continues to be strong, with gross leasing of workspaces set to rise 35 per cent annually in the January-March quarter, according to Colliers India. Real estate consultant Colliers India has released the data on the office market for the January-March period, nine days before the closing of the current quarter. As per the data, the total gross leasing of office space is estimated to rise to 13.6 million square feet across six major cities -- Bengaluru, Delhi-NCR, Mumbai, Chennai, Hyderabad and Pune -- during the first quarter of 2024. The leasing stood at 10.1 million square feet (sq ft) in the year-ago period. The demand is set to grow in Hyderabad, Mumbai, Bengaluru and Delhi-NCR, but may fall in Chennai. In Pune, the demand is likely to remain flat at 0.8 million sq ft. According to the data, the leasing of office space in Hyderabad is estimated to jump more than two times to 2.9 million square feet during January-March from 1.3 mill

WeWork India enters Chennai to launch 2,000-seater coworking centre in June

Coworking major WeWork India on Tuesday said it has entered Chennai market and has taken on lease 1.3 lakh square feet of office space in Chennai to open a new centre with a capacity of 2,000 desks. In a statement, Bengaluru-based WeWork India said, it has taken on lease over 1,30,000 square feet of office space in the commercial building 'Olympia Cyberspace' developed by Olympia Group. The new centre, having a total capacity of more than 2,000 desks, will be operational in June. Karan Virwani, CEO, WeWork India, said the company will be opening its first flexible workspace in Chennai, a city known for its vibrant culture, urban population, and rapidly growing business ecosystem. "We are witnessing a continued surge in demand for flexible workspaces across India," he added. As organisations rapidly return to work from offices, Virwani said there is a growing need for flexible and customisable workspaces that can facilitate hybrid or full-time work models. "With a strong pipeline

Bengaluru's net office space leasing soars 15 times in Oct-Dec: Report

Bengaluru saw a 15-fold jump in net office leasing during the quarter due to many large leasing transaction from corporates as well as low base effect, according to Cushman & Wakefield. Real estate consultant Cushman & Wakefield said on Saturday that the net leasing of office space stood at 18.63 million sq ft during the October-December period across major eight cities as against 9.06 million sq ft in the year-ago period. The Bengaluru office market achieved the highest volume and also maximum surge in percentage term during the current quarter of this calendar year. The net office leasing or absorption in Bengaluru jumped to 80,50,266 sq ft during October-December from 5,18,622 sq ft in the year-ago period. "Many large deals that were under negotiation in the previous quarters, but occupiers were adopting a cautious approach and delaying, have sailed through in Q4. As a result, fresh leasing of space jumped," the consultant said, explaining the sharp jump in office demand in

Flexible office space market may rise to over Rs 14,000 cr in FY24: Report

India's flexible office space market size is estimated to rise 60 per cent to over Rs 14,000 crore this fiscal due to an increase in rent charged by operators per desk and portfolio expansion, according to Upflex India report. Upflex India, a marketplace for flexible workspaces, has released its first report 'Co-Working and Managed Offices Redefining the Indian Commercial Real Estate'. Real estate consultant Anarock brought US-based Upflex to India in 2021. As per the report, the annual co-working market size in terms of rental income is estimated to rise to Rs 14,227 crore this fiscal from Rs 8,903 crore in the previous year. The total portfolio of flexible workspace operators has increased to 12.66 lakh from 10.4 lakh in 2022-23. In terms of area, the portfolio has risen to 57 lakh square feet from 47 lakh square feet. Upflex data showed that the average price per seat per month has increased to Rs 10,400 from Rs 9,200 per desk. The occupancy level has increased to 90 per cent fr

Office space demand dips 4.5% in 2023 as compared to last year: Colliers

Bengaluru and Delhi-NCR led the demand, accounting for nearly half of the total demand for office space in India till September

Strong economy to take office leasing to 40-45 mn sq ft in 2023: Colliers

In the quarter that ended on June 31, the highest QoQ change in demand for offices was noted in Chennai at 113 per cent to 3.3 mn sq ft

Indian real estate sentiment score rose between April-June: Knight Frank

In all the zones, the sentiment was the highest in the East zone, followed by the North and West

Retail leasing may rise 17-28% this year to 5-6 mn sq ft in top 8 cities

Leasing of retail space in malls and prominent high-street locations across eight major cities is expected to rise 17-28 per cent to 55-60 lakh square feet, driven by demand from retailers in fashion & apparel, homeware, and departmental stores categories, according to CBRE India. Real estate consultant CBRE South Asia Pvt Ltd on Wednesday released its report, '2023 India Market Outlook' that highlights key trends and projections for realty sector. "Retail leasing is expected to touch 5.56 million (55-60 lakh) square feet in 2023, the highest level after the 2019 peak of 6.8 million (68 lakh) square feet. It is expected that primary leasing in newly completed malls will remain the key driver of retail space demand in 2023," the consultant said. Figures denote leasing of space in investment-grade malls, prominent high streets and standalone developments. The eight cities tracked are Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune. After the 2019-peak, .

Office space demand for properties larger than 100,000 sq ft high: Report

NCR, Ahmedabad, and Mumbai witnessed higher demand for offices sized between 50,000 and 100,000 square feet

Office space leasing may fall 25-30% this year in top 6 cities: Report

Leasing of office space across six major cities may fall by 25-30 per cent this calendar year to 35-38 million square feet on subdued demand, according to Colliers India and FICCI. Property consultant Colliers India and industry body FICCI released a report 'Emerging Trends and Opportunities in Office Sector - 2023'. Gross office space leasing rose to 50.3 million square feet in 2022 across six cities from 32.9 million square feet in the previous year on better demand. These six cities are Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai and Pune. The report said that in an optimistic scenario, India's office sector is likely to see about 35-38 million square feet of gross leasing in 2023. The consultant expects that the economic headwinds would ease and not cause a significant dent to overall occupiers' confidence. It expects a significant increase in leasing in the latter half of this year with corporates likely to close leasing decisions that were put on hold temporarily. On

Offices absorb Covid-19 pandemic shock in 2022, post 3-year growth record

According to industry reports, southern cities, especially Bengaluru, Chennai and Hyderabad, are emerging as leading hubs in office space leasing owing to robust demand from tech and flex players

Global slowdown could dent office space demand in H1 2023 after strong 2022

Demand from domestic companies will, however, lend stability to the market

Net office market absorption at three-year high of 38 mn sq ft in 2022: JLL

Strong job creation, India's credentials as tech and innovation hub, firm corporate expansion plans, and a greater number of firms eyeing India for talent, were key growth drivers

Office leasing dips 13% MoM to 5.8 mn sq ft in Nov, up 60% YoY: JLL study

Experts cite global headwinds for the month-on-month dip

Net leasing of office space likely to rise 41-49% across 7 cities in 2022

Net leasing of office space is likely to rise by 41-49 per cent across seven major cities this year on a lower base and improved demand post-pandemic, according to JLL India. Net absorption or leasing of office space stood at 26.2 million square feet in 2021, and it is likely to be in the range of 37-39 million square feet this year across seven cities -- Bengaluru, Delhi NCR, Chennai, Hyderabad, Kolkata, Mumbai and Pune. Nevertheless, the net office leasing will remain lower than the record absorption achieved in 2019 -- the pre-COVID year -- at 47.9 million square feet. Real estate consultant JLL India calculates net absorption as the new floor space occupied less floor space vacated. Floor space that is pre-committed is not considered to be absorbed until it is physically occupied. The net absorption for the first nine months of 2022 (January-September) is at a three-year high of 30.3 million square feet and on track to match the 5-year average (2015-2019) for the full year, it

Start-ups to take up nearly 30% of gross office leasing in 2022: Study

Bengaluru leads in terms of space leased by such companies, says JLL report

Office space demand can translate into high returns, say experts

Oversupply, poor maintenance can, however, play spoilsport