The acquired office space, which combines flexible and traditional options, will be used to support the expansion of Google India and Google Connect Services India operations.
According to lease documents shared by data analytics firm Propstack, “The deal is spread across six properties with the Bagmane builder and TableSpace and was registered earlier this year”.
In one of the transactions, Google leased around 800,000 sq ft in Bagmane Rio and Constellation Business Park for 36-60 months in Bengaluru. An additional 1.66 million sq ft were signed in Bagmane Rio Business Park last year.
The documents also mention that Google has taken over 500,000 sq ft with managed office operator TableSpace in ORR.
“Google has chosen both flexible and conventional office spaces for its operations with Bagmane and TableSpace as they seek a hybrid work model,” said two individuals familiar with the deal.
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The lease agreement is significant as IT and ITeS firms are implementing job cuts and hiring freezes to reduce costs and protect their balance sheets.”Offices have become resilient, and occupiers are seeking ways to seamlessly weave hybrid working modes through flex spaces,” said Sankey Prasad, CMD of Colliers India. “They are also transitioning towards hybrid work, optimising office space, and making them more amenable for employees.”
In January, Google leased nearly 100,000 sq ft of office space in Smartworks’ co-working centre in Pune’s Mundhwa locality. Last year, the company extended its three-year lease on 600,000 sq ft of office space in Hyderabad. Google currently has four offices in India, including its country headquarters in Hyderabad.
Recently, Google India terminated over 400 employees as part of a larger job cut that affected 12,000, or 6%, of its global workforce.
In Q1 of this year, Bengaluru retained its top position as India’s healthiest office space market due to the availability of technology talent, a well-established R&D ecosystem, and lower costs.
However, a relative slowdown is expected in overall traction in 2023, especially in the tech sector, due to ongoing layoffs triggered by reduced external demand.
Colliers expects the office market to pick up in the second half of the year, with 2023 leasing reaching about 30-33 million sq ft at a gross level. Leasing by flex, engineering and BFSI companies is expected to remain resilient.
