Amazon to Lease Space at DLF’s New Project in Gurgaon

Ecommerce giant Amazon.com is in talks with realty developer DLF to take on lease over 600,000 sq ft of office space at its upcoming project ‘Downtown Gurgaon‘, three people aware of the development said. During its Q2 analysts call in October, DLF had said it will soon start construction work on 2 million sq ft of office space in Gurgaon as it sees rising demand for grade A office buildings in the coming year. DLF’s two towers in Downtown Gurgaon, each with 1.25 million sq ft of office space, are nearing completion. While one is nearly fully leased, the company has signed a non-binding agreement for about 95% of the second tower. “DLF Downtown is at prime location on National Highway 8, and despite being a under construction project, it has received interest from large corporates,” said one of persons cited earlier. “Most of the leasing has been done before the completion of the project.” A spokesperson for DLF said, “We do not comment on speculation of what we may or may not do in future.” If a deal is signed, it will be the biggest office space transaction of NCR in recent times. According to international property consultants, office space leasing in India has picked up again, and despite Omicron threatening the recovery, large corporates have continued to assess grade A assets. According to DLF Cyber City Developers (DCCDL), the rental arm of the company, leasing momentum has picked up in the last 6-8 weeks. DCCDL’s consolidated revenue stood at ?1,123 crore in Q2 of FY22 compared with ?1,040 crore in the year-ago period. The company’s renewal percentage, which used to be in the 90s, has now dropped to 85%.