Zomato leases 270,000 sq ft office space in Gurugram
What's the story
Zomato has leased a massive 270,000 square feet of office space at Tata Realty and Infrastructure's Intellion Park in Gurugram. The move is part of the food delivery giant's strategy to expand its footprint in this micro-market. According to The Economic Times, Zomato is also in advanced talks to lease an additional one million square feet in Gurugram.
Expansion strategy
Current office situation and expansion plans
Currently, Zomato occupies a large office complex in the Pioneer Group building in Gurugram. The company is also exploring the possibility of doubling its leased area in the city. If finalized, this could be one of India's largest office space deals. The exact details of the deal, including monthly rent, remain undisclosed.
Market trends
Factors driving the demand for office space in India
The deal between Zomato and Tata Realty highlights the continued demand for office space in India's top cities. This trend is driven by the establishment of new global capability centers (GCCs), the growing presence of flexible workspace operators, and the rise of unicorn start-ups. Big Tech firms are also continuing their expansion plans, further driving this demand.
Tenant profile
Intellion Park's growing list of global tenants
Intellion Park, where Zomato has leased office space, is also home to other global companies such as Google and IBM. The park was recently leased by Ciena, a US-based networking systems, services and software company. This further emphasizes the growing trend of multinational corporations choosing this location for their Indian operations.
Leasing trends
Delhi-NCR's Q3 leasing activity in a nutshell
According to realty consultancy Cushman & Wakefield, the Delhi-National Capital Region (NCR) saw a gross leasing volume of 5.1 million square feet in Q3 2023. This marks a 10% quarter-on-quarter and a whopping 56% year-on-year (YoY) growth. Gurugram led the leasing activity with a whopping 72%, followed by Noida at 24% and Delhi submarkets at 4%.