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Axis Bank has secured a significant lease deal for office space in Mumbai. The bank's latest venture sees it occupying over 81,300 square feet in the esteemed Parle Product Factory Compound, situated in the Vile Parle area of Mumbai's Western Suburbs.
The specifics of this deal were retrieved from FloorTap.com. The lease agreement covers three floors in addition to the base floor. Axis Bank is poised to pay a monthly rental of INR 85.37 lakh. The agreement features a clause for rental escalation, and a five year term beginning from February 1, 2024. A security deposit payment of approximately INR 5.12 crore was recorded on January 31. Furthermore, the agreement grants exclusive access to ample parking facilities, including 81 four-wheeler spaces and 300 two-wheeler slots, ensuring convenience for both employees and clients.
The top seven cities in India had net office space absorption surpassing 40 million square feet and reached 41.97 million square feet in 2023, according to recent statistics from property consultant JLL India. This is the second-largest yearly absorption since the COVID-19 pandemic, only surpassed by the levels observed in 2019. It also represents a new post-COVID milestone.
In a recent similar agreement, Barclays Bank PLC and Barclays Investments & Loans (India) Private Limited leased 64,995 square feet of office space in Mumbai's Worli neighbourhood for INR 2.07 crore per month. On January 24 and 25, the two transactions were registered.
The office space is located in Raheja Altmius, and the rent for the agreement is INR 320 per square foot. The building's upper levels house the commercial premises, and the security deposit is INR 12.47 crore. Whispering Heights Real Estate Pvt Ltd, a division of MindSpace Business Parks, is the lessor.
Last year, HDFC Bank signed a five-year lease for one lakh square feet of office space distributed across two towers of the One International Centre commercial complex in Lower Parel, Mumbai, which is supported by Nucleus Office Parks. The leased area was rented out by the bank for INR 165 per square foot per month, with an option under the agreement to increase rent by 4.5% every 12 months for the following five years.
International Finance Corporation, a member of the World Bank, grew its footprint in India and signed a long-term lease for more than nine years to take up more than 35,000 square feet of office space in Mumbai's Bandra-Kurla Complex (BKC). By the terms of the lease, IFC would pay office space charges of about INR 300 per square foot each month, for a total monthly payment of over INR 135 crore, including annual rate increases of 5%.
Mumbai's commercial real estate market is always changing, but new lease agreements show that the city is still a top choice for businesses looking to grow and innovate. Not only do these deals demonstrate Mumbai's economic resiliency, but they also highlight the city's vital part in driving India's growth story, as evidenced by the major institutions that have secured considerable office space. Mumbai's office space market continues to succeed despite aggressive pricing increases and smart movements by major players, creating an ideal atmosphere for ongoing business growth and success.
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