Tech, engineering, manufacturing firms lead office space in Chennai: Report

Technology firms and those companies engaged in engineering and manufacturing sectors were the majority of the entities to pick up office space in the city, according to a report released by real estate consulting firm CBRE South Asia on Saturday.

As per the latest office report 'CBRE India Office Figures Q1 2022', the total office leasing for the quarter (ending March 31, 2022) was at 2.3 million square feet in Chennai.

"Thirty four per cent of the offices leased were by technology firms, engineering and manufacturing (both registered) 30 per cent and banking, financial service and insurance (BFSI) companies comprised 13 per cent", the report said.

The overall office supply witnessed in Q1 of 2022 was around 9.4 million square feet which was a 11 per cent decline year-on-year basis.

Bengaluru, Hyderabad and Chennai dominated development completions, accounting 70 per cent, the report said.

"...we expect the positive momentum to further strengthen in 2022. We continue to witness a pickup in long-term decision making by occupiers, aided by 'return-to-work' strategies accelerating project completions," CBRE chairman and CEO India, South-East Asia, Middle East and Africa, Anshuman Magazine said.

The entry of new occupiers is driving a robust recovery of Chennai's office market, CBRE India, Tamil Nadu and Kerala, Head-Operations, Ameeth Raja said.

"With the IT segment leading supply and absorption, we expect office leasing to touch a new peak in 2022. With accelerated expansion opportunities, we expect further growth in the southern markets," he said.