Amazon will lease 1.1 million sq ft of office space in Bengaluru

14 Jun 2024 CW Team

As the US IT giant grows its operations in Bengaluru, it is leasing more than 1.1 million square feet of office space from property developer Sattva Group in North Bengaluru. In the Sattva Horizon Business Park, close to the international airport, Sattva Group has constructed a brand-new office tower. Over 7,000 workers will be able to live in the 11-story structure, which will be occupied exclusively by Amazon. According to individuals familiar with the deal, it was mentioned that Amazon had recently signed the term sheet, and that the new facility would accommodate all of the company's businesses. They stated that the facility was undergoing fit-out, and the first phase was anticipated to be operational by the middle of the following year. The most recent agreement followed three significant property transactions by Amazon, involving the acquisition of over 1.45 million square feet in Bengaluru, Gurugram, and Hyderabad. These office spaces were to be utilised for web services, development centres, seller services, and transportation services. One of the individuals mentioned above stated, "Amazon initially slowed down its expansion plans due to the prevalence of hybrid work models. However, the company is now seeking additional space in Hyderabad and Chennai to accommodate its growing operations." Amazon did not respond to ET's queries, while Sattva Group declined to comment. Several IT/ITES firms, including Amazon, shifted towards a hybrid work model, requiring employees to be in the office at least three days a week. However, with the return to work gaining ground, the demand for office space is expected to rise further. In the March quarter, office space transactions in the top eight markets in India reached 16.2 million square feet, marking a 43% year-on-year increase, according to Knight Frank. These transactions were primarily driven by India-facing businesses and Global Capability Centres (GCC) looking to enhance their presence. Bengaluru led the office market growth, securing the top position with 3.5 million square feet of transactions, comprising 22% of the total office take-up during the quarter, the property consultancy reported.

As the US IT giant grows its operations in Bengaluru, it is leasing more than 1.1 million square feet of office space from property developer Sattva Group in North Bengaluru. In the Sattva Horizon Business Park, close to the international airport, Sattva Group has constructed a brand-new office tower. Over 7,000 workers will be able to live in the 11-story structure, which will be occupied exclusively by Amazon. According to individuals familiar with the deal, it was mentioned that Amazon had recently signed the term sheet, and that the new facility would accommodate all of the company's businesses. They stated that the facility was undergoing fit-out, and the first phase was anticipated to be operational by the middle of the following year. The most recent agreement followed three significant property transactions by Amazon, involving the acquisition of over 1.45 million square feet in Bengaluru, Gurugram, and Hyderabad. These office spaces were to be utilised for web services, development centres, seller services, and transportation services. One of the individuals mentioned above stated, Amazon initially slowed down its expansion plans due to the prevalence of hybrid work models. However, the company is now seeking additional space in Hyderabad and Chennai to accommodate its growing operations. Amazon did not respond to ET's queries, while Sattva Group declined to comment. Several IT/ITES firms, including Amazon, shifted towards a hybrid work model, requiring employees to be in the office at least three days a week. However, with the return to work gaining ground, the demand for office space is expected to rise further. In the March quarter, office space transactions in the top eight markets in India reached 16.2 million square feet, marking a 43% year-on-year increase, according to Knight Frank. These transactions were primarily driven by India-facing businesses and Global Capability Centres (GCC) looking to enhance their presence. Bengaluru led the office market growth, securing the top position with 3.5 million square feet of transactions, comprising 22% of the total office take-up during the quarter, the property consultancy reported.

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