Information technology solutions provider EMC Software & Services has renewed leases for six of its offices spread across around 825,000 sq ft at IT Special Economic Zone (SEZ) Bagmane World Technology Center in Bengaluru‘s Outer Ring Road.
The company has renewed these deals for offices across three commercial buildings in the SEZ—WTC Moonstone, WTC Emerald and WTC Aquamarine—for five years at monthly lease rentals ranging from Rs 54 to Rs 81 per sq ft, taking the annual rental payout to nearly Rs 60 crore.
The company has paid security deposits worth 8-10 months’ rentals and the agreement provides for rental escalation of 12-18% after the first three years, showed documents accessed through real estate analytics firm Propstack.
Of the six leases, EMC has renewed two pacts totalling over 466,000 sq ft in WTC Moonstone at a monthly rent of Rs 54 per sq ft and more than 102,000 sq ft in WTC Aquamarine at a rental of Rs 68 per sq ft a month.
It has renewed three leases totalling 256,000 sq ft in WTC Emerald at a monthly rental of Rs 54-81 per sq ft.
Bagmane World Technology Center, with nearly 5 million sq ft development spread across 28 acres, counts Accenture, Boeing, Visa, EY, Dell, Nvidia and Ericsson among its occupiers apart from EMC.
The project has been jointly developed by Bagmane Group and MTB Estates and Properties.
ET’s email query to EMC Software & Services remained unanswered until the time of going to press, while Bagmane Group declined to comment for the story.
Occupiers and tenants of large office complexes across the country including big corporations are renewing their lease agreements, indicating their preference despite the much talked about emergence of the work-from-home option following the Covid-19 pandemic.
Around 21 million sq ft of office space has been renewed since April 2020 and renewals are supporting the growth in leasing numbers.
While the second wave of the pandemic temporarily slowed down the exuberance in office property market recovery in the June quarter, the increasing pace of vaccinations and wider roll out by corporates have instilled confidence, helping the market bounce back quickly in the September quarter.
At the city level, according to Cushman & Wakefield, Bengaluru recorded a robust traction, with overall leasing activity going up to 4.8 million sq ft in the September quarter, a fourfold sequential rise, driven by large-scale term renewals.
In Mumbai, the gross leasing volume stood at 3.15 million sq ft, with fresh leasing and term renewals accounting for 44% and 56%, respectively, the data showed. Delhi-NCR followed them with numbers totalling nearly 2.5 million sq ft, a 40% sequential rise.