Siemens leases 730,000 sq ft space in Bengaluru at Rs 70 cr a year

The facility is part of a 1.6 mn sq ft complex at Hosur Main Road. Deal tenure is nine years with a two-month rent-free period and 8% escalation after 14 months

Global automation leader Siemens has taken 730,000 square feet (sq. ft) office space on rent at Gold Hill Excelsior in Electronic City, Bengaluru, said sources in the know.
 
Siemens will pay a monthly rent of Rs 80 per sq. ft or Rs 70 crore per year. When contacted, a company spokesperson said it was the part of company’s consolidation strategy and it would move in the new facility by March 2021.
 
The property owner could not be contacted for comments.
 
“The deal holds significance as the current average rentals of the fitted out spaces in the micro-market are ranging between Rs 68 sq.ft and Rs 80 per sq.ft a month and the deal has been signed at a higher-end of this spectrum,” said Abhishek Tiwari, co-founder at CRE Matrix, a real estate data analytics firm.
 
According to Tiwari, tenants have taken up warm shell spaces in the micro-market after paying about Rs 55 per sq. ft per month.

 
The new facility is part of a 1.6 million sq.ft complex located at Hosur Main Road. The tenure of the deal is nine years, with a two-month rent-free period and a rental escalation of 8 per cent after 14 months.
 
Large infotech companies — Accenture, IBM, and Google — have taken large spaces this year despite the pandemic and work-from-home norm. About 18 million sq. ft of office leasing has happened this year against the normal take up of average 40 million sq. ft.
 
Google took one million sq. ft in Bagmane Rio in Bengaluru early this year. Accenture took 650,000 sq. ft in Prestige Starteck in Bengaluru. “Limited new supply from past few years in Electronic City did have impact on demand with few new transactions observed in micromarket. Given decent new supply lined up for 2021, more activity is expected next year,” said Tiwari.