Axis Bank has recently leased a substantial office space of over 81,300 square feet in the Parle Product Factory Compound, located in Mumbai's Vile Parle area. This lease agreement, spanning five years, commences with a monthly rent of Rs 85.37 lakh, which is approximately 1.14 crore rupees annually. Notably, the contract includes a 12% rental escalation clause after the initial three years. The lease and rent commencement dates are set for early and mid-2024, respectively. As part of this deal, Axis Bank gains exclusive access to 81 four-wheeler parking spaces and 300 two-wheeler parking slots. The bank has also paid a security deposit exceeding Rs 5.12 crore. Despite attempts to contact them, both Axis Bank and Parle Products have not responded to inquiries. This leasing move by Axis Bank is significant in the context of India's office space market. Recent data from JLL India indicates that net office space absorption in the country's top seven cities has surpassed 40 million square feet, reaching 41.97 million square feet in 2023. This marks a notable post-COVID milestone and is the second-highest annual absorption rate, just behind the record set in 2019.
