Over 7,400 office leases up for renewal in 2021
Real Estate

Over 7,400 office leases up for renewal in 2021

Around 7,400 leases of 90 million sq ft are up for renewal in 2021 in the top six commercial real estate hubs in India – Bengaluru, Pune, Mumbai, Chennai, Gurgram, and Noida, according to Industry data and Anarock Research.

The year 2021 is also the highest lease expiry pipeline compared to the next two years – 2022 and 2023. In 2022, the estimate for 7,000 leases for approximately 78 mn sq ft and the lease renewal for 2023 for approximately 55 million sq ft. With around 7,400 leases expiring in 2021, Mumbai has the highest share of around 44% and Pune with 15% share. Both these cities are adversely affected by the second wave of Covid-19. The impact of leasing over the year bears watching, the research said.

The total leasing that comes up for renewal accounts for 90 million sq ft. In terms of space, Bengaluru has the highest share of around 37% and Mumbai with the second-highest area share of around 19%.

Out of total leasing renewal in 2021, Chennai has a 5% share in terms of area, and has a 12% share in total. Gurugram has a 15% share in terms of number and overall area. Noida has the lowest share of lease renewal of 3% for both lease numbers and the overall area.

The second wave of Covid is way more destructive than the first, and some companies are waiting and watching over their real estate decisions. The leasing activity has begun to tame down. It is also because of the average vacancy levels in Grade A office space across the top seven cities, breaching the 15% mark.

The rising number of the Covid-19 cases in the Mumbai Metropolitan Region (MMR) and Bengaluru, the markets with the highest commercial demand and stringent curfew restriction are a cause of concern.

Mumbai and Pune have seen a decline in daily cases of Covid. IT, ITeS companies are hiring in bulk to fulfil the increase of work orders and have a healthy pipeline for the current year as well.

Image Source


Also read: Co-working startup leases 2.5 lakh sq ft in Hyd

Around 7,400 leases of 90 million sq ft are up for renewal in 2021 in the top six commercial real estate hubs in India – Bengaluru, Pune, Mumbai, Chennai, Gurgram, and Noida, according to Industry data and Anarock Research. The year 2021 is also the highest lease expiry pipeline compared to the next two years – 2022 and 2023. In 2022, the estimate for 7,000 leases for approximately 78 mn sq ft and the lease renewal for 2023 for approximately 55 million sq ft. With around 7,400 leases expiring in 2021, Mumbai has the highest share of around 44% and Pune with 15% share. Both these cities are adversely affected by the second wave of Covid-19. The impact of leasing over the year bears watching, the research said. The total leasing that comes up for renewal accounts for 90 million sq ft. In terms of space, Bengaluru has the highest share of around 37% and Mumbai with the second-highest area share of around 19%. Out of total leasing renewal in 2021, Chennai has a 5% share in terms of area, and has a 12% share in total. Gurugram has a 15% share in terms of number and overall area. Noida has the lowest share of lease renewal of 3% for both lease numbers and the overall area. The second wave of Covid is way more destructive than the first, and some companies are waiting and watching over their real estate decisions. The leasing activity has begun to tame down. It is also because of the average vacancy levels in Grade A office space across the top seven cities, breaching the 15% mark. The rising number of the Covid-19 cases in the Mumbai Metropolitan Region (MMR) and Bengaluru, the markets with the highest commercial demand and stringent curfew restriction are a cause of concern. Mumbai and Pune have seen a decline in daily cases of Covid. IT, ITeS companies are hiring in bulk to fulfil the increase of work orders and have a healthy pipeline for the current year as well. Image SourceAlso read: Co-working startup leases 2.5 lakh sq ft in Hyd

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