Amazon Development Centre India has renewed its lease for around 500,000 sq ft of office space in Chennai. The firm has signed properties in Global Infocity in Perungudi, Chennai with developer Airoli ITP Development for 35 months according to the lease record shared by Propstake a data analytics firm.
Amazon has been renewing its leases but has not exercised hard options across many locations. All the four renewals totalling 5lakh sq ft were registered earlier this. The renewal comes on the heels of two larger ones signed by Amazon recently. The US firm renewed a 650,000 sq ft space on the outer ring road of Bengaluru for development centre business.
The firm has also acquired about 600,000 sq ft and 800,000 sq ft of space in Gurgaon and Hyderabad respectively for web services, development centres, seller services and transportation services. The latest deal marks the most significant renewal transaction for office lease this year with companies taking a cautious approach to expansion and embracing more flexible office spaces.
“Despite recent global headwinds that might have been a bit concerning a preliminary observation suggests India’s office markets continue to exhibit good leasing volumes as of the first quarter of 2023,” said Anshul Jain, MD-India & Southeast Asia at Cushman & Wakefield. “Beside US Labour Market tightness bodes well for new GCC’s to enter India. I guess the macro fundamentals remain intact for the grade A commercial office market to thrive as we saw in the previous four to six quarters.”
