Demand for serviced office space grows in Bangalore
Bangalore, with a projected supply of 13 million sq.ft. of office space for the year, has not quite been able to satiate the immediate demand. The shortage of ready supply as well as heavy pre-leasing by corporates has increased the need for interim office space. Business Centres have strong growth recently with more focus on quality and international service standards.
Real estate services firm Cushman & Wakefield reports that high interest areas like CBD and Off CBD especially face this space crunch; and have the majority of operational Business Centres like DBS, Pan Asia, Golden Square, New Bridge as well as Regus in RMZ Millenia and Raheja Towers. Most of these offer corporates the advantage of an attractive location as well as a known address.
According to Cushman & Wakefield, Outer Ring Road currently faces a situation wherein the projects that are nearing completion have already been committed to by corporates, thereby creating a further dearth of supply. Yet, there are no operational Business centres in the area that can cater to the current requirement, although certain clients are provided incubation space by developers.
Suburban locations of Indiranagar and Inner Ring Road boast of centres like Stylus and New Bridge. North Bangalore, which is most likely to be the next preferred commercial location, is soon to have a centre by Stylus.
Whitefield, though facing surplus stock from the previous year, has also witnessed large pre-lease commitments. Currently, its interim requirements are being met by Regus business centre.
Pricing: The average cost per seat in Grade-A business centres ranges from INR 18,000 to INR 30,000 per month in Bangalore, depending on the location and quantitative requirement. Add-ons like telephone, fax, photocopying, internet, pantry, conference rooms, help/ travel desk and secretarial services come at an additional cost.
Hotels in the city also offer part of their business centres as temporary office solutions. Star hotels like Taj, Park, Leela, Windsor Manor, Lé Meridien etc. offer conference rooms on a day-to-day basis at rates ranging from INR 10,000 to INR 18,000 per day for an 8 to 16 seater. Only few city hotels offer cubicles which can be furnished at an approximate cost of INR 10,000 per day.
Incubation centres offered by developers, are usually based on the client's commitment for permanent space uptake and range from approximately 15 - 20% of the committed space. Generally in a Kirby structure (a temporary structure proximally located to the developing facility) fully furnished rates for these range from INR 65 to INR 75 per sq.ft. per month.
Due to continued demand for office space, Cushman & Wakefield expects that business centre occupancy levels in Bangalore will remain in excess of 75% through 2007. The charges/ rentals will remain stable over the next 6 months owing to sustained demand and new business centres being available in CBD and other suburban and peripheral locations.
Courtesy: INRnews
Real estate services firm Cushman & Wakefield reports that high interest areas like CBD and Off CBD especially face this space crunch; and have the majority of operational Business Centres like DBS, Pan Asia, Golden Square, New Bridge as well as Regus in RMZ Millenia and Raheja Towers. Most of these offer corporates the advantage of an attractive location as well as a known address.
According to Cushman & Wakefield, Outer Ring Road currently faces a situation wherein the projects that are nearing completion have already been committed to by corporates, thereby creating a further dearth of supply. Yet, there are no operational Business centres in the area that can cater to the current requirement, although certain clients are provided incubation space by developers.
Suburban locations of Indiranagar and Inner Ring Road boast of centres like Stylus and New Bridge. North Bangalore, which is most likely to be the next preferred commercial location, is soon to have a centre by Stylus.
Whitefield, though facing surplus stock from the previous year, has also witnessed large pre-lease commitments. Currently, its interim requirements are being met by Regus business centre.
Pricing: The average cost per seat in Grade-A business centres ranges from INR 18,000 to INR 30,000 per month in Bangalore, depending on the location and quantitative requirement. Add-ons like telephone, fax, photocopying, internet, pantry, conference rooms, help/ travel desk and secretarial services come at an additional cost.
Hotels in the city also offer part of their business centres as temporary office solutions. Star hotels like Taj, Park, Leela, Windsor Manor, Lé Meridien etc. offer conference rooms on a day-to-day basis at rates ranging from INR 10,000 to INR 18,000 per day for an 8 to 16 seater. Only few city hotels offer cubicles which can be furnished at an approximate cost of INR 10,000 per day.
Incubation centres offered by developers, are usually based on the client's commitment for permanent space uptake and range from approximately 15 - 20% of the committed space. Generally in a Kirby structure (a temporary structure proximally located to the developing facility) fully furnished rates for these range from INR 65 to INR 75 per sq.ft. per month.
Due to continued demand for office space, Cushman & Wakefield expects that business centre occupancy levels in Bangalore will remain in excess of 75% through 2007. The charges/ rentals will remain stable over the next 6 months owing to sustained demand and new business centres being available in CBD and other suburban and peripheral locations.
Courtesy: INRnews
posted by Unknown at 5/13/2007 12:07:00 PM
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