Amazon leases over six lakh sq ft of office space in Bengaluru

March 31, 2023
Amazon leases over six lakh sq ft of office space in Bengaluru

Amazon Development Centre has renewed its lease for 6,00,000 sq ft of space in Bangalore in one of the most significant office transactions in recent times.

The web commerce company registered the document in February for a 60 months lease, the lease record shared by Propstack showed.

The new facility will come up in a constellation business park owned by Bagmane developers on Outer Ring Road that hosts large technology companies.

The deal follows two large transactions Amazon recently signed, acquiring more than 800,000 square feet of space in Gurgaon and Hyderabad for web services, development centres, seller services, and transportation services.

The transaction comes as a breather for commercial real estate, with many corporations slowing down large transactions due to global uncertainties. Some of the large leases that have closed recently include those at Google, JP Morgan, and Deloitte.

According to Colliers, the office market in 2023 looks uncertain and is expected to bounce back with relative ease despite the global headwinds and other externalities. Leasing activity is likely to pick up in the second half of the year, led by global capability centers, BFSI companies and start-ups with sound business models.

The growth was driven by global capability centres in various sectors, such as BFSI, new tech, engineering R&D, along with segments like flex, healthcare-life sciences, and manufacturing and industrial occupiers, which are expected to propel office markets’ activity.

In an optimistic scenario, India’s office sector is likely to see about 35-38 mn sq ft of gross leasing in 2023. In such a case, the economic headwinds are expected to ease out by Q2 2022, and not cause a significant dent to overall occupiers’ confidence. This will translate into a significant increase in space take-up as larger occupiers will close leasing decisions that were put on hold temporarily, mentioned the report.

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