Mumbai: BKC office leasing accelerates
Mumbai‘s office leasing market has recently gained speed. This month, there have been several, exorbitant price offers in the central business district’s (CBD) Bandra-Kurla Complex. Avendus Capital has agreed to lease a 1 lakh square foot space atop the Platina Tower, while Mahindra & Mahindra Financial Services has also leased a 2,75,000 square foot space in the surrounding region. Return to the workplace and extensive recruiting should also increase demand inside the city.
Mumbai’s commercial real estate district, which was adversely affected by the COVID-19 epidemic, is steadily recovering thanks to a return to office culture and an increase in regular hiring. Mumbai’s industrial real estate is seeing an increase in high-priced offerings, with the Bandra Kurla Complex taking center stage. In Platina Tower, a lease agreement has been made for a roughly monthly condominium of more than Rs 250 per square foot. Reliance Industries Limited announced the opening of the Jio World Centre, one of the most significant conference venues in the nation, at BKC recently, which has also been in the spotlight. Edelweiss, which just leased space in Adani Realty’s Inspire Tower in BKC, is being closely watched by Avendus Capital and M&M Financial. The agreement for more than a lakh square feet of space continues to be the largest office leasing deal in India this year.
Avendus Capital would pay monthly rents of Rs. 2.4 crore for its new headquarters in the Bandra Kurla Complex (BKC). The financial services company has agreed to rent 4 floors in the Platina Tower, totaling 99,000 square feet. 12.67 crore rupees were paid as the protection deposit through the corporation. It could have had access to 70 parking spaces for cars. The business anticipates moving into the new location by Q4 of FY 2023. The Platina Tower is being promoted by the Wadhwa Group.
One of the most significant job offers in India this year is this one. Mahindra & Mahindra Financial Services, a division of the Mahindra Group, has leased a sizable 275,000-square-foot space in Kurla’s Agastya Corporate Park to centralize its activities. The company would likely pay a monthly lease of Rs 2.50 crore. Ten years of rent are required, and there is a five percent annual lease escalation provision. This Park has been developed by Piramal Realty on LBS Marg in Mumbai.
A whole 10-story skyscraper near Pidilite Industries’ Andheri offices has a 5-year long-term lease agreement in place. The company is giving the owner, Beeklane Fabrics, a monthly leasing payment of Rs. 1.80 crores. The structure, known as Opus Prime, is located in the Santa Cruz Special Economic Zone’s secondary business sector (north) of Mumbai (SEEPZ). Due to lower prices compared to BKC and the availability of large spaces, the areas of Vile-Parle, Andheri, and Jogeshwari are becoming more popular for industrial real estate.
According to the terms of the lease agreement, Pidilite may have a lock-in period of 36 months, and the landlord will no longer be able to terminate the lease until the entire time has passed. There is also a condition that allows for a 5 percent lease increase at the end of every year. Pidilite Industries has already made a payment of Rs. 10.80 crores toward the security deposit. Additionally, the company will have access to 128 parking spaces. Despite being filed this month, the agreement will take effect in January 2023 and remain in effect until December 2027. The building owner is responsible for paying the MIDC costs, which include sub-letting and sub-licensing fees, following the agreement.
The company that runs Nykaa E-Retail, FSN E-Commerce Ventures, has agreed to rent a 55,000-square-foot office space in the Lower Parel neighborhood. Loreal, a vital player in the cosmetics industry, is also based in Marathon Futurex. The lease term ranges from August 2022 to July 2027.
The lease term begins in August 2022 and ends in July 2027, with a three-year lock-in period that is required. In addition to any rent increases during the term of the lease, the company will pay a monthly lease of Rs. 69 lakhs. After the initial 36 months, the rent agreement stipulates a 15% rent increase.
Mumbai’s industrial real estate has seen a lot of sporting events this year. According to a business estimate, Mumbai should see the absorption of 4.5 million square feet of office space. The demand for Grade A spaces is increasing across the nation as offices are already operating at virtually full capacity. With increased momentum, the trend of high-priced transactions for commercial real estate in Mumbai, like other metros, is certain to persist.
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