Office space demand for properties larger than 100,000 sq ft high: Report

Transactions for office space real estate with a floor size of more than 100,000 square feet remained high in the calendar year 2022, international property consultancy, Knight Frank India said.

The release said, more than half (53 per cent) of the transactions made regarding office spaces were for properties larger than 100,000 square feet in Hyderabad. Hyderabad, Pune, and Bengaluru topped the list of cities in 100,000 sq. ft plus segment.

The figure was 53 per cent for Bengaluru.The majority of office space transactions in Kolkata (70 per cent) and Chennai (57 per cent) were for offices smaller than 50,000 square feet. It is important to note that global IT and manufacturing companies require large office spaces and thus push demand for the same.

NCR, Ahmedabad, and Mumbai witnessed higher demand for offices sized between 50,000 and 100,000 square feet. This segment registered over 30 per cent of transactions in these geographies.

Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “Office leasing volumes in 2022 recorded at over 51 million sq. ft, which was historically the second best. Within this, IT/ITeS-driven markets of Bengaluru, Hyderabad, and Pune, saw more than 50 per cent of their total office leasing by occupiers taking in excess of 100,000 sq ft. The large space taken up are usually for value-driven services such as Research and development (R&D) and Global Capability Centers (GCCs), which is a sign of India’s continued prowess in this area. We expect the momentum of office transactions to remain largely in line for 2023.”