Apple leases 4 lakh sq ft office space in Bengaluru – ET RealEstate

BENGALURU: Apple has leased about 4 lakh sqft of commercial office space in Bengaluru’s central business district, people familiar with the matter said.

This is the US-based tech giant’s biggest real estate deal in the country.

Apple has signed the lease with Prestige Estates at its Minsk Square building and will pay a rental of Rs 170 per sqft, which works out annually to Rs 82 crore. Apple and Prestige did not respond to requests for comment.

The deal has coincided with the iPhone-maker launching its online retail store in the country, which it did last month. The company, which is already making smartphones in India, has also announced it will open its first physical store in Mumbai next month.

The new office space will host a large technology centre. The space would normally accommodate about 4,000 employees, but the numbers may be less as companies look to ‘de-densify’ their work spaces due to the pandemic. Apple advertised vacancies

for 18 jobs last month on its website, out of which seven are in Bengaluru and the rest across Hyderabad, Chennai and Gurgaon.

Apple has an existing lease of 50,000 sqft in the northern part of the city with RMZ, but sources said the company may give up on that and consolidate its operations in the CBD zone.

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Intel looks to lease 1 million sq ft office space in Bengaluru – ET RealEstate

BENGALURU: Not all is gloom and doom in the commercial real estate market. Big technology companies have resumed discussions about leasing office spaces, discussions that were put on hold following the outbreak of coronavirus earlier this year.

Microsoft and Intel are looking to lease about 1.3 million and 1 million sqft respectively in Bengaluru, people familiar with the matter said. “They have given the go-ahead that they will not stop their expansion plans,” one of the people mentioned above said. If those close, it will be a relief for builders. But the market this year is unlikely to touch the heights of last year, when 60 million sqft of office space was leased.

Microsoft occupies about 0.5 million sqft with Prestige Estates. Intel has a big campus of its own, in addition to some leased property.

Both the companies did not respond to requests for comment. Embassy, RMZ, Bagmane and Prestige are the builders who are in the fray to house Microsoft.

This comes at a time when companies like Oyo, Ola, Swiggy, Zomato and Uber have reached out to builders to renegotiate pan-India rental agreements, renewal clauses and rent escalations. All these companies have laid off thousands due to the difficult business environment, and have given up about 10% of their real estate space.

Industry executives said that proposals totaling about 5 million sqft are in the market. While discussions have been slow, companies have not backed off. Tax and consulting company EY is looking to lease 3 million sqft. Property developer RMZ closed deals totaling 1.6 million sqft across Bengaluru, Hyderabad and Chennai during the lockdown.

Paytm has also signed a new office deal to consolidate its workforce in Delhi-NCR by taking up 0.5 million sqft, besides another 0.1 million sqft in Bengaluru to house its ecommerce business, TOI reported on Thursday.

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