“There are growing numbers of managed office deal that were recently signed. The recently deal with CBA only reaffirms it and has 48 months commitment,” said a person aware of the deal.
WeWork did not comment on the deal.
For Commonwealth Bank of Australia this is a second lease deal with WeWork, it signed a 2400 seats office deal in 2020 with the flexible office operator.
The new office space at WeWork will function as a shared services center for CBA Services India catering to US, Australia and Asian markets. The Commonwealth Bank of Australia went live with Tata Consultancy Services, BaNCS platform in 2010 that supported its first Indian branch in Mumbai.
In 2019, Commonwealth Bank of Australia appointed industry veteran Pankajam Sridevi as MD India to scale up business.
Flexible office operators are recording higher demand for large office spaces from large corporates and unicorns after the partial opening of offices and large-scale adoption of hybrid work models.
Most of the flex office players have witnessed a sharp recovery and are expecting stronger demand during the next year. The segment has almost doubled their share of the overall leasing in the country.
“The managed office spaces took up 2.3 msf of office space in Q1 2022 against 0.9 msf in Q1 2021 recording a rise of 151% YoY. The significant increase in hiring and the pent-up demand of the past 8 quarters, are expected to drive market volumes in the remainder of the year”, said Viral Desai executive director-transactions Knight Frank.
Co-Working and managed office spaces saw a rise in the share of office space absorption making up 21% of total leasing volume in Q1 2022 as against 11% in Q1 2021, mentioned Knight Frank.
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