Infosys Will Pay Rs 2.35 Crore/Month Rent For This Massive Office In Bengaluru! Deal Inked For 10 Years
As IT workforce returns to offices across the country, there are companies which are acquiring office spaces through out the cities.
Indian IT mammoth Infosys has taken around a 5 lakh square feet of office space in Bengaluru’s Northgate. With a monthly rent of around Rs 2.3 crore, the lease deed is signed between Modern Asset and Infosys Limited on May 12, 2022, is for a period of 10 years beginning June 1, 2022.
Raja Seetharaman of Propstack said that “This transaction is significant in many ways. Firstly, despite the hybrid workspace environment, companies continue to transact large space. Secondly, while companies set up offices in Tier 2-3 cities, space in Tier 1 cities continues to be relevant”.
The Grade-A SEZ tech park has been developed by the Modern Asset Management.
5 Lakh Square Feet Office Space
The campus is known as North Gate Phase 2 and has an aggregate super built-up area or leasable area of 5,49,492 sq ft in Wing A, comprising three basements, ground floor and some upper floors, the lease deed shows.
Bappaditya Basu, Chief Business Officer, Anarock Commercial said that the commercial office market has been dominated by IT-ITeS occupiers who account for 40 percent to 45 percent of leased spaces. The percent remains intact and also the move by Infosys reiterates the same.
Headquartered in Bengaluru, the IT major has leased portions of the ground floor measuring 20,785 sq ft, first floor that measures 43,164 sq ft, second floor 57,890 sq ft, third floor 57,779 sq ft and fourth floor measuring 58,984 sq ft. The total area of 2,38,602 sq ft has been referred to as Tranche 1 area in the deed.
A fifth floor spread across 58,908 sq ft, the sixth floor measuring 54,656 sq ft, the seventh floor measuring 58,925 sq ft and the eighth floor measuring 58904 sq ft, aggregating to 2,31,497 sq ft and referred to as Tranche 2 in Wing A in the deed has also been taken on lease by the company.
Together, they make up a super built-up area of approximately 4,69,999 sq ft along with 650 car parking slots.
As per the documents, the company will pay Rs 50 per sq ft a month plus taxes aggregating to Rs 1.19 crore for Tranche 1 from December 1, 2022.
From June 1, 2023, the company will start paying Rs 50 per sq ft plus taxes on the super built-up area of 2,31,397 sq ft for the Tranche 2, aggregating to Rs 1.16 crore.
Every three years, the rent will escalate at 12 percent. This is calculated from the lease commencement date– three years from June 1, 2022 and three years thereafter during the tenure of the lease and the subsequent renewals.
As per the lease deed, a security deposit of Rs 16.4 crore has been put down by the company.
IT-ITeS Occupiers Continue To Retain Work Space
Speaking of the workforce and work model, Seetharaman said TCS has announced that a significant percentage of its staff would work from home but subsequently, the percentage of staff working from home was lowered.
He added that “Now, we have Infosys giving the industry a similar signal. All that said, I’m certain that the office space environment will remain dynamic and evolve over the next few years”.
He said that while the coronavirus pandemic hit commercial office leasing at a macro level, IT-ITeS occupiers retained office spaces as business was booming with technology adoption at its peak.
Basu said that in the light of post covid situations and receding covid cases, many are returning to office either full-time or in a hybrid model.
He said that across the Grade A offices, Bengaluru has a sub-10 percent vacancy and this time to strike the deal was timely and appropriate.