Post pandemic, the Bengaluru real estate market records one of the largest property deal, as Google acquires 1.3 million Sq.ft. space in the city.
Google, a California-based company acquired work space in Bagmane Rio Business Park that falls on the Outer Ring Road, Bengaluru. The company has worked on the agreement with Bagmane Developers to lease the space for the next 15 years. This center for Google will become functional from Q3 2022.
A reliable source says, “Google will be paying Rs. 85 per Sq.ft. for the property. The property is under fitout and marks one of the biggest deals signed so far.”
This is the second time when post-pandemic Google acquired a workspace in India. Earlier to this, the tech giant occupied space in Gurugram. In India, Google office space tally to 2. 8 million Sq.ft. With all this, Google now has four centers in India including its Country headquarter in Hyderabad.
An expert was quoted saying, “Google is also exploring flexible offices across various cities to implement a hybrid working model.”
After a lot of debates and discussions about the Work from Home concept, the majority of companies including reputed brands, occupiers, and tenants are either getting into a new lease or renewing their existing agreements.
Commenting on this, Arpit Mehrotra, MD (Bengaluru) Office Services, South India, Colliers, said “Bengaluru leads in Q2 with 30% of the total absorption, followed by Hyderabad and Chennai. For South Indian cities, the market orientation meter is moving from tenant-friendly to balanced.”
Flex space demand is on the rise as many corporates are working on the capex light model and tech companies remain dominant in all southern cities. Vacany levels have dropped in all southern cities. Tech companies in India leased nearly 58% flexible space in the first six months of 2022. Also, Renewals and Re negotiations are preferred as short-term portfolio strategies for occupiers.
