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Amazon leases over 6 lakh sq ft of office space in Bengaluru

Amazon Development Centre has leased 650,000 sq ft of space in Bengaluru in one of the most significant office transactions in recent times. The web commerce company registered the document in February for a 60-year lease, and will pay rent of ₹62 per sq ft, the lease record shared by Propstack showed.

The new facility will come up in a constellation business park owned by Bagmane Developers on Outer Ring Road that hosts large technology companies.

The deal follows two large transactions Amazon recently signed, acquiring more than 800,000 square feet of space in Gurgaon and Hyderabad for web services, development centres, seller services, and transportation services. The transaction comes as a breather for commercial real estate, with many corporations slowing down large transactions due to global uncertainties. Some of the large leases that have closed recently include those at Google, JP Morgan, and Deloitte.

According to Colliers, the office market in 2023 looks uncertain and is expected to bounce back with relative ease despite the global headwinds and other externalities. Leasing activity is likely to pick up in the second half of the year.

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