Amazon leases over six lakh sq ft of office space in Bengaluru

Amazon Development Centre has renewed its lease for a 6.5 lakh sq ft office space in Bangalore to
expand its operation in one of the most significant office transactions in recent times.
The firm registered the document in February, secured the space for a 60-months lease, and will pay a rent
of Rs 72.5 per sq ft as per the latest data shared by Propstack.
The new facility will come up in Outer Ring Road, Bangalore that hosts large technology companies like
Microsoft and Google amongst others.
The deal comes on the heels of two larger ones Amazon signed recently, acquiring over 8 lakh square feet
of space in Gurgaon and Hyderabad for web services, development centres, seller services, and
transportation services.
The transaction comes as a breather for commercial real estate, with many corporations slowing down
large transactions due to global uncertainties. Some of the large leases that have closed recently include
those at Google, JP Morgan, and Delloite, among others.
Despite the emerging headwinds, gross leasing activity stood higher on a year-on-year basis by 23.2%.
The gross leasing (both renewals and new leases)activity across the top seven cities in India was recorded
at 12.8 million square feet in Q1 2023, indicating an improvement from the quarterly run rate of 2022.
The growth was driven by global capability centres in various sectors, such as BFSI, new tech,
engineering R&D, along with segments like flex, healthcare-life sciences, and manufacturing and
industrial occupiers, which are expected to propel office markets’ activity.