BENGALURU: In one of the largest real estate transactions in Bengaluru, SAP Labs India is in the process of renting a 5,00,000 sq ft of office space in the city to consolidate and expand its business in India. “SAP Labs is looking for various growth corridors in Bengaluru. They are yet to take a decision on whether they will opt for north or south Bengaluru,“ said three people having direct knowledge of the transaction. The new facility , when operational, can seat 5,000 additional employees.
Typically , companies allot 100 sq ft per employee. According to sources, SAP Labs wants to decentralise its operations from IT hub, Whitefield, in Bengaluru. “The request for proposal is out but the firm is yet to take a final decision on renting new office space,“ said one of the person quoted above. Recently, Sap Labs India has taken up additional 50,000 sq ft in RMZ NXT in Whitefield to accommodate its growing numbers of employees.
The company also operates a 1.05 mn campus in Whitefield, which is owned by SAP Labs India. An email sent to SAP Labs India did not elicit any response till the time of going to press. Strengthening business confidence resulted in net absorption of office space across the top eight cities to 34 million sq ft during 2016, according to property consultants Cushman & Wakefield.
“Bengaluru has once again been the best performing market, and we expect the traction to continue. Investors and occupiers are keenly watching the Hyderabad market, where we see continued demand next year,“ said Anshul Jain, managing director, India Cushman & Wakefield.
According to Cushman and Wakefield, total leasing activities across the top eight cities last year amounted to 42.3 msf, down 22% from a year ago. Sectors leading the total leasing table were IT-BPM at 52% of total 2016 space uptake. Bengaluru remained the preferred IT-BPM destination, constituting 37% of the total leasing activity followed by Hyderabad at 26%.
Credits ET Realty