Grade A office rents are expected to go up further this year by three per cent. Industry observers say smaller firms such as those in consumer goods and financial services are driving up demand, even as some large tech companies have given up their prime area offices. Rebecca Metteo reports.
Sushil Kumar Rathi, director, Allcargo Supply Chain, explains why the share of third-party logistics players in Grade A warehousing is gradually going up and how they might account for 50%-60% of total warehouse leasing in future.
The office market in India is typically driven by cities like Bangalore and Delhi-NCR, forming 59% of the office demand in the last four years, said Colliers. Some large deals closed in the first quarter of 2024 included Tablespace, Samsung, ANSR, and TATA Agratas, leasing large floor spaces upward of 1.5 lakh sq ft across Hyderabad d and Bangalore.
The demand is mainly led by improved business sentiments and a positive economic outlook, signalling confidence among foreign-origin companies seeking to establish their capability centres in the country.