Smartworks has operations in Delhi, Noida, Gurugram, Kolkata, Bengaluru, Mumbai, Hyderabad, Chennai and Pune.
The engineering and manufacturing sector accounted for the second highest leasing share in the top six Indian cities even as Grade A gross absorption for top six Indian cities touches 4.3 million sq ft, Colliers said in a report.
During Q1 2021, the engineering and manufacturing sector’s leasing accounted for about 18 percent of the total leasing, up from 11 percent in Q1 2020.
The IT-BPM (Information Technology - Business Process Management) accounted for about 47 percent of the total leasing, driving demand. The average deal size in the IT-BPM was about 37,500 square feet. Interestingly, EdTech companies accounted for 7 percent of the total leasing.
Overall, Bengaluru led leasing activity with share of about 47 percent, followed by Mumbai and Delhi-NCR with a share of 16 percent and 14 percent respectively.
"Riding on a strong comeback in Q4 2020, Bengaluru led the office leasing market in Q1 2021, capturing 47 percent of the market in Q1 2021. Bengaluru continues to remain the hot spot for occupiers due to its talent pool and economic business conditions,” said Arpit Mehrotra, Managing Director, Office Services (South India), Colliers.
Flexible workspaces accounted for 5 percent of the leasing in Q1 2021, down from 11 percent share in Q1 2020. Operators continued to be cautious on expansion and instead focused on opening centres only with established demand from enterprises. Flexible workspaces saw corporate clients leasing over 11,800 seats with them during the quarter. Bengaluru saw majority of the flexible workspace leasing, with a deal each in Mumbai and Pune.
"Long term commitments made for upcoming projects will continue to gain momentum as corporates get future-ready with modified footprints. Occupiers will not incur CAPEX, and managed office(s) signups will be a matter of immense prudence,” said Bhupindra Singh, Managing Director, Regional Tenant Representation (India), Colliers.
“Mumbai will see a spurt in demand as landlords have aligned expectations to the current market situation. Grade A office spaces will be in demand. Industries that are not directly affected by the pandemic are showing healthy recovery from the current level,” said Sangram Tanwar, Managing Director, Office Services (Mumbai) at Colliers India.