YES Bank leases 44,000 sq ft office space in Mumbai’s Goregaon suburb

August 26, 2022
 File Photo
File Photo

YES Bank has picked up over 44,000 sq ft office space at commercial tower R-Tech Park in Goregaon suburb of Mumbai through a lease for a long-term tenure of five years.

As per the lease agreement, the bank will be paying lease rental of Rs 53.19 lakh per month, taking its annual rental pay out to nearly Rs 6.40 crore. The bank has also paid security deposits worth nearly Rs 3.07 crore for the transaction.

The lease for the office space at the information technology park will run through next month until September 2027 with a lock-in period of 18 months. The agreement for the lease was registered on Wednesday.

The bank has leased the office space across 11th floor of the south wing and 12th floor of north wing of the tower from the developer Romell Real Estate, showed the agreement accessed through CRE Matrix, a real estate data analytics firm.

The said office space is mortgaged with Housing Development Finance Corporation (HDFC) who has given the no-objection certificate (NOC) in favour of the occupier for the purpose of this lease transaction.

Romell Real Estate spokesperson confirmed the lease transaction, while ET’s email query to YES Bank remained unanswered until the time of going to press.

The recovery in commercial real estate, especially office spaces, after the Covid19 pandemic is getting broad-based as indicated by the rising number of small and mid-size leases and outright transactions across segments and key property markets.

The commercial office segment, which was significantly impacted by the pandemic, has made a strong comeback in the last 3-4 quarters, supported by strong economic growth, increased hiring, and a return to the office trend, keeping the office sector buoyant.

The Indian office market grew substantially and delivered a strong performance in the first half of 2022. Office transactions recorded at 25.3 million sq ft, a 107% on-year growth, indicated the potential of the market on the back of a waning pandemic and the promise of a sustained economic recovery.

The IT and ITeS segments are among the prime drivers of overall leasing activity in the top cities and bulk hiring by these firms will influence demand for large quality office spaces.

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