E-commerce now second highest occupier of office space

09 Jul '15
3 min read

A key development during the second quarter of 2015 was a spurt in office space leasing by online retail firms, particularly in the National Capital Region (NCR) and Bangalore, according to CBRE’s India Office Market View for Q2 2015, which reports on the status of Grade-A office space across the country’s leading cities.

The survey by the commercial real estate services and investment firm found the e-commerce segment, has in fact, emerged as the second largest occupier of office space during the period with a share of about 17 per cent of total transacted space in the quarter, relegating the BFSI sector (16 per cent) to third place.

The IT/ITeS sector continued to remain the top demand driver with a share of approximately 36 per cent of office space transactions across the seven leading cities in Q2 2015.

Overall, the demand for corporate office space in India’s leading cities firmed up in the second quarter of 2015, while market sentiments improved to a large extent. More than 8 million sq. ft. of commercial office space was taken up across the seven leading cities, translating to a quarter-on-quarter (q-o-q) increase of around 70 per cent.

Bangalore remained the top corporate office destination in the country, with nearly 35 per cent of this total absorption figure being generated in the city, where leasing remained upbeat in completed as well as under-construction projects.

“Following a subdued first quarter, which is usually a period when corporates plan for annual real estate requirements, the second quarter witnessed a rise in office space absorption. A number of blue-chip tenants moved into quality office developments across leading cities in the April–June period. Overall, improved macro-economic sentiments during the first half of the year led to increasing demand for office space from corporate real estate occupiers. We expect these positive market sentiments to continue for the rest of the year,” Anshuman Magazine, chairman and managing director of CBRE, South Asia Pvt. Ltd. said on the findings of the survey.

Office space demand in the NCR, Mumbai and Chennai also remained upbeat with several large-sized transaction closures being reported during the period in IT and SEZ developments. Almost 53 per cent of total office space transactions in Q2 2015 was contributed by these three cities, each witnessing a healthy take-up of more than a million square feet of corporate real estate, the CBRE survey showed. (SH)

Fibre2Fashion News Desk – India

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