Boston Consulting Group leases one lakh sq ft in Mumbai’s BKC
Boston Consulting Group (BCG) has picked up nearly 100,000 sq ft of office space on a long-term lease at the commercial complex Maker Maxity in Mumbai’s business district Bandra-Kurla Complex (BKC), said people with direct knowledge of the development.
The firm has leased the space across eight floors in Maker Maxity’s North Avenue 2 for a total of 10 years, with a lock-in period of six years.
With an average starting rent of Rs 450 per sq ft a month, which will see an escalation every year, BCG will be paying rent and deposit of over Rs 560 crore over the total tenure of the lease agreement.
The consulting firm is undertaking both consolidation and expansion of its offices with this space take up. Its current office is spread over 29,000 sq ft in Nariman Bhavan at South Mumbai’s Nariman Point. The firm also holds around 18,000 sq ft of office space at Maker Maxity.
“They are more than doubling the office space they occupy in Mumbai. Nariman Bhawan is also their registered office, so that will eventually move to Maker Maxity once the office is operational here,” said one of the people mentioned above.
The entire lease agreement for office space on the ground floor, sixth floor, and ninth floor has been inked through a number of pacts that were registered on Tuesday and Wednesday.
“BCG has leased a new space in BKC at North Avenue 2, and this is in line with our organisation’s historic growth and strong growth expectations going forward,” said Rahool Pai Panandiker, managing director and partner, who leads the Mumbai office operations at BCG India. “We will be creating a unique space that integrates the new paradigm of working models as well as our commitment to climate action, deeply imbued with the special spirit of Mumbai, India and our heritage.”
ET’s email query to Maker Group remained unanswered until the time of going to press. Transaction advisor JLL India declined to comment for the story.
This is the largest ever single space taken up across any multi-tenanted building at Maker Maxity and the largest rental and deposit commitment in the history of this commercial complex.
BCG has leased the space from the project’s developer, Maker Group, and a few other property investors.
While the project, which is strategically located just at the beginning of BKC business district, has been developed by Maker Group, it has been strata sold and the ownership of these offices is with several investors and property firms.
Another leading global management consulting firm, McKinsey & Company, had leased nearly 45,000 sq ft office space in Maker Maxity in the fourth quarter of 2021.
The office spaces, across markets, are being expanded while the organisations are planning a cautious return-to-offices for their employees. Several large companies are expanding office spaces to make social distancing adjustments.
Social networking major Facebook also recently picked up 90,000 sq ft of office space at commercial tower One BKC in the Bandra-Kurla Complex through renewal and new lease agreements with Blackstone Group.
Office demand in suburban locations or secondary business districts is outpacing that in the central business districts across India’s major markets. According to experts, the trend that began with Mumbai, with the shift in preference from Nariman Point to Bandra-Kurla Complex over the past few years, has moved to other cities as well and is starting to reflect in the rentals commanded by these locations.