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Walmart Global Technology Services India has leased about 1 million sq ft of office space in Bengaluru from real east company Prestige Group to set up a global capability centre, according to sources, marking one of the largest lease deals in the country this year.The American retail giant will pay a rent of Rs 95 per sq ft, or about Rs 108.3 crore annually, for the office space in Prestige Tech Pacific on outer ring road, the sources said.The agreement, signed earlier this month, has a three-year lock-in period, they said.Walmart has taken up two blocks, measuring 600,000 sq ft and 400,000 sq ft, respectively, for its growing operations. The new campus will facilitate Walmart Global Technology Services’ expansion in India, said one of the people cited earlier.CBRE, which sources said was the transaction advisor to the deal, could not be reached for comment. Prestige Group declined to comment.“The year 2024 has been significant for the Prestige market, with record-breaking sales and a notable resurgence in the office leasing sector,” said Juggy Marwaha, chief executive of Prestige Office Ventures. “We anticipate closing an additional half a million square feet before the year-end…”In the last nine months, Bengaluru-based Prestige Group has leased over 5 million sq ft of office space across key cities, including Bengaluru, Delhi-NCR, Pune, Hyderabad, Chennai and Kochi, reflecting the strong recovery the leased office space segment has seen after slowdown.“Our confidence is bolstered by the expectation that India will exceed a gross leasing volume of around 70 million sq ft across seven major cities in 2024,” said Marwaha.Earlier this year, Global financial services company BNY Mellon had signed lease deals with the Prestige Group for 1 million sq ft of space.By 2028, the real estate company plans to develop 40 million sq ft of office space across the country, targeting about Rs 3,500 crore in annuity revenue from the office leasing business.Currently, across cities like Bengaluru, Mumbai, Delhi-NCR and Chennai, there’s about 22 million sq ft of under-construction inventory, excluding ongoing inorganic brownfield acquisitions.In the last two-three years, there has been a significant surge in office demand across various markets and sectors, leading to record-high leasing activity each year.In the first nine months of 2024, the technology sector accounted for 25% of the total office space demand. It was followed closely by the banking, financial services and insurance (BFSI) segment, along with flexible workspace operators.In the September quarter, office space absorption surged to 17.3 million sq ft, reflecting a 31% increase from the previous year, said Colliers.The growth was primarily driven by Bengaluru and Hyderabad. Notably, Bengaluru saw its highest leasing activity during this period, Colliers said.
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