Legato Health Technologies leases 5 lakh sq ft office space in Gurugram

Legato Health Technologies, a managed service delivery company that provides IT and business operations services for US health insurers, has leased 500,000 sq ft of office space in Gurgaon, two people aware of the deal said.

The space in Gurgaon has been taken at Brookfield Candor office park in Dundahera, they said, adding that it is one of the biggest office space deals in NCR in recent times.

Email queries sent to Legato and Brookfield remained unanswered till as of press time.
E-commerce firm Amazon Inc. is also in talks with real estate developer DLF to lease more than 600,000 sq ft of office space in its upcoming project, ‘Downtown Gurgaon’.

Earlier this year, Legato had taken up over 1 million sq ft of office space on lease in Bengaluru and Hyderabad as part of the company’s expansion plan.

According to international property consultant Savills, large-sized deals of 100,000 sq ft or more have dominated leasing activity in NCR, constituting over 41% of the total office space demand in 2021.

Savills India is said to have facilitated the deal, but it declined to comment.

On the back of some large office space deals in the last few months, Delhi-NCR is expected to clock approximately 8.1 million sq ft in 2022.

The IT sector is expected to remain among the key office space occupiers in 2022, and demand from other sectors such as BFSI and co-working is also likely to show some improvement, according to experts.

Consultants said Legato has committed to 2msf between Bangalore and Hyderabad.

“There have been a number of queries by large corporates and we expect the leasing momentum to continue throughout the year. The demand in Gurgaon is also back, with hardly any space left in the Grade A building, “said Shweta Sawhney, MD, Delhi-NCR, Savills India.

Delhi-NCR has a pipeline of around 5.1 million sq ft in 2022. Most of the upcoming supply is concentrated along Golf Course Extension Road, NOIDA Expressway, and the NH-8 micro-market, and is estimated at approximately 4.6 million sq ft.

“First 2 months of the year have been where we are seeing a shift toward flexible and serviced office solutions in the NCR with approximately 23% of the leasing was for flex and serviced offices,” said Sawhney.

Gurgaon contributed the most to the leasing activity with a 63% share, followed by NOIDA with a share of 32%. NOIDA Expressway and Golf Course Extension Road also remained the preferred micro-markets in 2021, with 19% and 15% shares, respectively, of the total leasing activity.

“These micro markets are continuing to see very healthy demand, both driven by expansions and relocations, and hence 2022 is likely to be the year of revival for the NCR office market,” said Sawhney.