Managed workspace provider Table Space has entered into an agreement with realty developer Runwal to lease over 1.31 lakh sq ft office space in the developer’s commercial tower in Andheri suburb of Mumbai for a long-term tenure of over 10 years.
The cumulative rental payout for the transaction is over Rs 333 crore through the total term. The agreement includes a provision that grants Table Space an option to lease an additional 1.97 lakh sq ft of office space, thereby expanding the total deal size to nearly 3.30 lakh sq ft.
With this additional office space, total rental value is estimated to be in around Rs 800 crore through the total term, making it one of the largest co-working office space lease deals in India.
Runwal R Square is a 1.1 million sq ft Grade A commercial development on a land parcel spread over two acres on Andheri-Kurla Road near international and domestic airport. The 14-storey office tower nearing completion has a carpet area of 50,367 sq ft on each floor.
Table Space Technologies’ new office space will be spread across over two floors, while the space to be added through the extension option will take it to five floors.
The current size of the company’s portfolio is over 9.5 million sq ft including this new lease transaction. The total capacity of this portfolio is over 75,000 seats across seven key cities of India. This center will have a capacity of around 1,500 seats and is expected to be operational by September.
“Table Space will continue to grow the portfolio and offerings across the country aiming to reach 21 million sq ft by the end of 2026. This includes managed offices as well as TS Suites which provides “ready to move-in” offices,” Kunal Mehra, co-founder, Table Space technologies, told ET.
In one of the largest flexible office lease transactions in the country, Table Space Technologies recently rented 3.5 lakh sq ft office space in Outer Ring Road (ORR), Bengaluru, to Schneider Electric IT Business India, part of a French multinational company. It has also signed Microsoft for an additional 300,000 sq ft of flexible office space in the same property in Bengaluru.
Among the largest asset transactions executed by any flexible office providers in India, WeWork had leased an entire 16-storey commercial tower in Mumbai’s business district Bandra Kurla Complex (BKC) for a monthly rental of Rs 4.3 crore a few years ago.
India has emerged as one of the fastest-growing flexible office space markets globally driven by rising demand for managed space solutions from both large enterprises as well as agile startups across geographies and industries especially after the Covid19 pandemic.
Several factors such as the growth of startups, changing work culture, and the need for cost-effective and flexible solutions has led to the rise in demand for flexible office space.
Enterprises cutting across origin, scale, and industry segments are looking to integrate flexible offices in their portfolios, from housing their flagship offices to high-end research & development teams and business functions.
Published On Jan 18, 2024 at 09:04 AM IST
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