Q3 office leasing: Bengaluru and Hyderabad take over half
Summary
Cushman & Wakefield says Q3 office leasing across eight cities was about 22M sq ft, up 3% on the quarter. Year-to-date leasing of 64.6M sq ft is the highest ever for nine months.
Key points
- Leasing by city: Bengaluru 5.2M, Hyderabad 4.2M, Mumbai 3.9M, Delhi NCR 3.8M, Chennai and Pune 2.0M each, Ahmedabad 0.2M sq ft.
- Global capability centres took 42% of Q3 leasing, and about 65% in Bengaluru and Pune.
- Flex workspace leasing hit 11.9M sq ft year-to-date (+42%), a record 18% share.
- A record 22.7M sq ft of new offices was completed, 43% in Bengaluru and 38% in Hyderabad.
- Vacancy rose to 14.37% as supply surged, but rents still rose 2% on the quarter.
What it means for Korean companiesWith record new supply in Bengaluru and Hyderabad, tenants have more choice. New entrants can start in flex space to keep costs down.