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EY Global Delivery Services India has recently secured the renewal of its office lease for a substantial 420,000 square feet of prime office space in Bengaluru. This strategic decision comes amidst a global financial slowdown, which has led many companies to exercise caution when it comes to expanding their operations.
The multinational firm, headquartered in London, has chosen WTC Coral in Bengaluru as its preferred location, spanning an impressive 11 floors. Propstack, a distinguished data analytics firm, shared a lease register document that reveals the lease agreement's extensive duration of 60 months, granting EY the advantage of long-term stability.
According to the document, the lease renewal terms stipulate a progressive increase in rental rates of 13.5 percent after the initial 12 months, with subsequent escalations occurring at intervals of 36 months. The monthly rental amount is disclosed as Rs 1.7 crore, with the lease tenure commencing in January 2023. Notably, the lease agreement also includes the provision of 561 designated car parking slots, available at a rate of Rs 3405 per slot per month, as detailed in the document.
This lease renewal serves as a much-needed boost to the real estate industry, following a series of new and renewed leases by prominent companies such as Amazon, Google, JP Morgan, and Deloitte. The office space market in India has faced a notable slowdown due to global geopolitical tensions, resulting in several major companies surrendering office spaces in an effort to curtail real estate costs. However, there is a glimmer of hope, as office leasing activity has shown a 9 percent year-on-year increase, reaching 12.6 million square feet during the January-March period.
Confirming the lease deal, EY stated that the extension of the lease tenure for 60 months aligns with the organization's vision to accommodate its expanding workforce at the Bagmane Coral premises, in line with their return-to-office policy. Over the past 15 months, EY Global Delivery Services has actively embraced a hybrid model, effectively managing a vast workforce of 60,000 professionals spread across 11 cities in India. This shift reflects EY's commitment to innovation and adaptability as they navigate the changing dynamics of the modern workplace.
EY Global Delivery Services (GDS) is a dynamic and truly global network of centres dedicated to service and technology delivery. With a strong emphasis on innovation, technology, and process enhancement, the skilled teams at EY GDS provide scalable services to support EY member firms, service lines, and functions worldwide across various industries and geographies. With a workforce of over 65,000 professionals spanning 21 cities in 10 countries, including Argentina, China, Hungary, India, Sri Lanka, the Philippines, Poland, Spain, Mexico, and the United Kingdom, EY GDS plays a crucial role in delivering EY's growth strategy.
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