KPMG leases commercial space in Mumbai for Rs 37 lakh per month for five years

Office rentals remained stable across the major markets in India in Q2 2021.

KPMG Global Services Pvt Ltd has leased commercial space in Mumbai for five years at a rent of Rs 37 lakh per month, documents shared by CREMatrix showed.

The consultant has leased 24,788 sq.ft of space at Nesco IT Park from October 1, 2021, to September 31, 2026. According to the documents, the rent-free period of four months is from October 1, 2021, to February 1, 2022. The lock-in period is for three years, the documents showed.

The company has leased the 13th floor, Central B wing at NESCO IT Park from NESCO Ltd. The leave and licence agreement was registered on October 29, 2021.

The lease for five years comes with a 15 percent rental escalation clause every three years. While the rent for the initial four months is free, the rent for the following 32 months is Rs 37,67,776 and the last 24 months is Rs 43,32,942, the documents showed.

The property comes with 18 car parkings. KPMG has paid a security deposit of Rs 1.88 crore for the initial three years and Rs 2.19 crore for the last two years, the documents showed.

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The company did not comment on the deal.

According to Bappaditya Basu, Chief Business Officer - ANAROCK Commercial, the property is a grade-A commercial property situated in the western suburb of MMR.

During the peak of lockdown, the property witnessed a subdued leasing activity as most of the transactions were put on hold due to travel restrictions. However, with the easing of the pandemic-related restrictions and the corporates gearing up for a gradual return to office policy, this property is seeing an increased interest from the occupiers, he said.

Also Read: Apple India Private Limited renews lease for three floors in Mumbai's BKC for five years

Lease transactions for large office spaces are being registered across key property markets led by steady economic recovery, aggressive vaccination drive across the country and a rising number of corporates planning a return of workforces to offices.

These deals clearly indicate that corporations have started making decisions regarding their office spaces. Indecisiveness due to lack of clarity on the COVID situation is gradually being replaced by decisive moves to achieve short to medium term objectives, real estate experts said.

After almost 18 months of the COVID-19 pandemic, the top six cities across the country recorded 10.3 million sq ft of office gross absorption in Q3 2021 which was an increase of almost 89 percent Q-o-Q with occupiers planning for a gradual re-entry and closing deals that were on hold, leveraging tenant favourable market dynamics, as per data shared by Colliers.

With most corporates planning to get employees back in office, renewals for office space is gaining pace after two waves of the COVID-19 pandemic. Office space renewals accounted for 23 percent of the leasing post-March 2020, up 8 percentage points from the pre-pandemic scenario, a new report has said.