SAP India renews lease for one lakh sq. ft. office in Gurugram

Software major SAP India Pvt Ltd has renewed lease for its nearly 100,000 sq ft office in Vatika Towers on Golf Course Road in Gurgaon, two people aware of the development said. SAP has been operating in Vatika Towers for over 14 years and has extended its lease for a new term of nine years. “We can confirm that the company has extended their lease,” said Ritu Gupta, head-leasing, Vatika Ltd. “This has been possible because the project caters to tenant requirements of campus-style development with all amenities and excellent maintenance standards in the main CBD of Gurugram.” According to experts, the momentum in office space leasing has picked up and corporates are not downsizing or leaving premium space any more, which was a trend after the Covid-induced lockdown in March 2020. Recently, Apple India renewed leases for its nearly 16,000 sq ft office in Mumbai’s business district Bandra-Kurla Complex (BKC) for five years at higher rentals. “Term renewals formed a robust 35% of the overall leasing during the quarter, signalling a strong occupier confidence in the ‘office model’ despite working in a hybrid model for the past 15 months,” a Cushman and Wakefield report said. Term renewals and pre-commitments highlighted the office leasing activity in Delhi-NCR. Of the four deals that took place in Q2 2021, two were term renewals while the other two were pre-commitments. Samsung recently leased 370,000 sq ft of office space at Candor TechSpace SEZ—part of Brookfield REIT portfolio—in one of the biggest deals in NCR in recent years. NCR has reported a 123% year-on-year growth in office leasing in Q3 2021 and 93% growth in comparison with quarterly average of 2019.