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In three big-ticket commercial real estate deals in Bengaluru, e-commerce giant Amazon and industrial conglomerate Honeywell have renewed their office leases in the city, while American electronic design automation company Synopsys has taken up a 4.3 lakh square feet space in a fresh deal, property registration documents accessed through real estate data analytics platform Propstack showed.
According to the documents, Amazon Development Centre India Private Limited has renewed its lease for a 6.76 lakh square feet office space in Taurus 3 facility of Constellation Business Park for a period of five years at a starting monthly rent of โน4.92 crore.
The deal, which was registered on October 18, 2024, named Bagmane Developers Private Limited and an individual named B N Neetish Purushottama as the lessors. It involved a stamp duty of โน1.11 crore and a registration fee of โน56.04 lakh, a copy of the lease deed showed.
Also Read: Office leasing up 56% YoY at 16.4 mn sq ft in Bengaluru between Jan-Sep: Report
The terms of the deal include rent escalation by 15% every three years starting July 1, 2024. However, it must be noted that the lease period commenced on June 1, 2024, as per the documents.
The leased space is spread across 10 floors and the overall deal includes parking space for a total of 940 cars, per the documents. Further, the lessee is entitled to lease renewal for an additional five-year term.
Honeywell renews office lease at RMZ Ecoworld
Documents shared by Propstack showed that industrial major Honeywell Technology Solutions Lab Private Limited has renewed its lease for a 5.9 lakh square feet office space spread across Blocks 3A, B and C of RMZ Ecoworld in East Bengaluru, for a five-year tenure starting August 26, 2024, the documents showed.
The lease deed, executed on September 30, 2024, listed Arliga Ecoworld Infrastructure Private Limited as the lessor. Meanwhile the deal was registered in October 2024 and included a stamp duty of โน57.54 lakh, the documents showed. The transaction also included a security deposit of โน19.82 crore and a registration fee worth โน28.82 lakh.
Also Read: Bengaluru leads office leasing across top 8 cities in Q3 2024; records second highest housing sales at 14,604 units
Besides a starting monthly rent of โน2.41 crore, the agreement involves a rent escalation clause of 10% after 24 months following the commencement date. The deal also involves parking space for 787 cars.
As per the documents, the term of the lease under the first renewal deed expired on August 25, 2024.
Synopsys leases 4.3 lakh square feet space in Bagmane Capital Troy
Property registration documents seen by HT.com revealed that electronic design automation major Synopsys India Private Limited has leased 4.3 lakh square feet of office space in Bagmane Capital Troy for seven years at a starting rent of โน4.19 crore per month.
The deal was registered on September 30, 2024, and named โBagmane Developers Private Limited and Othersโ as the lessor. As per the documents, the transaction attracted a stamp duty of โน1.09 crore and a registration fee of โน54.56 lakh. It also included a security deposit worth โน25.18 crore.
As per details cited in the lease deed, the deal includes a caveat of rent escalation by 15% following three years from the date of commencement i.e. April 24, 2024.
Also Read: Bengaluru to dominate India’s commercial real estate market with 330-340 mn sq feet office stock by 2030: Report
The leased space is spread across eight floors and includes 504 car parking slots, the documents showed. The lessee has the option to renew the lease for one further term of three years, the documents showed.
Lastly, the deal includes a lock-in period of five years, per the documents.
Queries mailed to Amazon India, Bagmane Developers, Honeywell Technology Solutions Lab, Arliga Ecoworld Infrastructure and Synopsys India did not elicit a response. The story will be updated once a response is received.
Bengaluru leads the way in office absorption
According to a recent CBRE report, Bengaluru led office space absorption across India during the January-September period of 2024, accounting for about 30% of the total leasing at 16.4 million square feet.
During the July-September quarter, Bengaluru recorded office leasing to the tune of 7.1 million square feet as against 3.4 million square feet in the same period last year.
According to an earlier report by the property consultancy, Bengaluru is expected to continue its lead in India’s commercial real estate market with an estimated 330-340 million square feet of office stock by the year 2030.
The report titled โKarnataka Horizon: Navigating Real Estate Excellence in the Southโ released in early July 2024 highlighted that the IT capital has seen its office stock more than double to over 223 million square feet as of June 2024, from 100 million square feet in 2013, to comprise the highest share in the segment amongst all major cities in the country.
