From ET Realty
BENGALURU: Internet startups helped Bengaluru record its highest ever office space leasing activity during 2015, according to data from property consultancy company JLL. The city, widely termed as India’s Silicon Valley, and now the country’s start up capital, took in net leasing space of 12.3 million square feet, surpassing the previous record of 11.3 million set in 2007.
Out of the total 12.3 million, e-commerce, or broadly consumer internet startups, absorbed about 36%, or 4.5 million square feet.
Bengaluru reported country’s least vacancy of 4% among the top cities, falling from 16% in 2011. The national occupancy levels too dropped to 17% from 22% in the previous year, which signaled recouping economic activity. India’s total office space absorption was estimated at 36.2 million sqft, JLL data showed. Mumbai came second with 5.7 million sqft, followed by NCR with 5.3 million sqft. Among other cities, Pune reported 4.7 million, Hyderabad 4.5 million, Chennai 3.8 million and Kolkata at 1.5 million sqft of office space absorptions.
“It was a phenomenal year for office leasing activity in Bengaluru, which has become the top destination for serious investors looking to own operating assets,” Juggy Marwaha, MD, South India at JLL said. The city headquartered Embassy Office Parks and RMZ Corp, two of the country’s leading office space aggregators, have attracted marquee global investors Blackstone Group and Qatar Investment Authority respectively.
The big office space deals from start ups included Flipkart booking 2.5 million sqft, Amazon’s 1.2 million sqft and Ola signing up 3.5 lakh sqft during the year.