Office space leasing up 10% in Jan-Jun: CBRE

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New Delhi | Published: July 17, 2018 12:51:44 AM

Office space leasing increased 10% to over 20 million sq ft during the first six months of 2018 in nine major cities across the country, driven by higher demand from e-commerce companies and co-working operators, property consultant CBRE said in its report India Office Market View.

The nine cities are Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Kochi and Ahmedabad. (Representational image)

Office space leasing increased 10% to over 20 million sq ft during the first six months of 2018 in nine major cities across the country, driven by higher demand from e-commerce companies and co-working operators, property consultant CBRE said in its report India Office Market View.

The nine cities are Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, Kochi and Ahmedabad.

“Corporates are likely to remain cost-sensitive, develop workplace strategies for efficient space utilisation, which will impact the office space absorption. We foresee pre-commitments in quality, cost-effective projects nearing completion which will have a significant impact on office leasing activity across key cities,” the report quoted Anshuman Magazine, chairman, India and South East Asia, CBRE as saying.

The report also said that around 16 million sq ft of office space was added during January-June 2018, up by 40% on year. The share of co-working/business centre operators doubled to about 10% during January-June 2018 from just 5% in first half of 2017. E-commerce firms remained active, with their share rising to 10% in Jan-Jun from 2% in the year ago period.

“The use of co-working spaces is expected to rise, with the concept being adopted not only by start-ups and individuals, but also by well-established corporates with fluid expansion/occupation plans. This is expected to push up the share of co-working spaces in overall space leasing,” the report said.

Ram Chandnani, MD (advisory & transaction services, India), CBRE South Asia, said the office leasing activity is expected to remain stable in the short term, backed by corporates looking to expand or consolidate their operations.

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