Corporates pre-commit 10.8 mn sq ft office space in India via 38 deals: Report

New Delhi, April 25 (IANS) Corporates pre-committed close to 38 office space deals, covering a total area of around 10.8 million square feet during the six-month period from October 2024 to March 2025, a report said on Friday.

These deals have been pre-committed by companies in Bengaluru, Mumbai and the National Capital Region (NCR), according to the report by Anarock.

“The increased demand from both Indian companies and global MNCs, along with changing workplace needs such as advanced tech infrastructure and ESG compliance, has driven the pre-commitment activity,” said Peush Jain, Managing Director of Commercial Leasing and Advisory at Anarock Group.

A growing number of global capability centres (GCCs) are also expected to drive demand further, as companies seek large, high-quality workspaces that allow them to maintain their unique identity.

Bengaluru led the trend with nearly 5.7 million sq. ft. of pre-committed space, accounting for 53 per cent of the total, followed by Mumbai with 3.1 million sq. ft. (29 per cent) and NCR with 2 million sq. ft. (19 per cent).

These three cities are home to a large number of domestic companies and multinational corporations (MNCs) in the technology, banking, financial services, and insurance (BFSI), and co-working sectors.

With the availability of quality Grade A+ office space falling short over the past two years, many companies have chosen to secure their future offices through pre-commitment deals.

These agreements, signed during the under-construction stage of a project, help companies secure prime locations, negotiate better lease terms, and avoid future rental hikes.

Bengaluru saw the highest average deal size, with corporates committing to about 0.5 million sq. ft. per deal.

In Mumbai, the average size was 0.4 million sq. ft., and in NCR, it stood at around 0.1 million sq. ft.

The report noted that 42 per cent of the total deals were for spaces larger than 0.3 million sq. ft.

Bengaluru had the highest number of such large deals at nine, followed by Mumbai with four and NCR with three.

Most of these deals were signed by global firms in the IT/ITeS and BFSI sectors, which are looking to expand their presence in India.

--IANS

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