Office space supply up 6% in April-June 2023 led by Hyderabad, Bengaluru & Chennai: CBRE report

Engineering, manufacturing and technology led the office space absorption levels in Chennai as it grew by 107% between April and June 2023 period, a study undertaken by CBRE South Asia Pvt Ltd said on Friday. Accordingly, the absorption level of office space stood at 2.5 million square feet space between April and June 2023 while it was 1.2 million sq ft during the same period of last financial year in the capital.

Engineering and manufacturing together accounted for 45 % of office space, followed by technology 18 % and flexible office space operators at 16 % while remaining was contributed by other sectors.

The majority of the office space absorption was small-size (less than 50,000 sq ft) deals, the study said.

At the pan-India level during the April-June 2023 period, office space supply grew by 6 % and Hyderabad, Bengaluru, and Chennai accounted for the majority of the absorption levels.

The non-Special Economic Zone (SEZ) segment continued to dominate development completions during April-June 2023 period while SEZ segment accounted for 24 % of the new developments.

Key transactions recorded in the city during April-June 2023 period include Agilysys which leased 181,800 sq ft in Ramanujan IT park, IndiQube leased 1,65,000 sq ft in Alpine and Cholamandalam Finance leased 80,000 sq ft in Tamarai Technology Park, the study said.