HDFC Bank has renewed the lease for a full office building housing its head office on Dr. Annie Besant Road in Worli, Mumbai for a monthly rent of Rs 1.45 crore. per month, bringing the total rental payments to over Rs 52.2 crore. The commercial property, Sandoz House, has a basement, ground floor, and eight more floors with a total area of 64,872 square feet. The office building has a car park for 40 cars.
HDFC Bank paid Rs 3.79 crore as a security deposit for the lease, according to documents accessed through real estate data analytics firm CRE Matrix.
The lease transaction between the bank and the landlord, Dr. Syedna Taher Saifuddin Memorial Foundation, was registered on September 29.
The settlement values rent for this property at 224 rupees per square foot, in line with rents in the vicinity of properties such as Ceejay House, Poonam Chambers, and Shiv Sagar Estates.
The commercial real estate in this neighborhood is home to the headquarters and corporate offices of some of the great Indians. Global corporations and entities, including Barclays Corporate & Investment Bank, Credit Suisse AG, and Nomura Financial Advisory & Securities (India).
When the work-from-home option and the hybrid model emerged in the wake of the Covid19 pandemic last year, many occupants and tenants of large shopping complexes across the country are renewing their leases. These renewals of existing leases, including several major operations such as the recently concluded HDFC Bank, are an indication that even large corporate entities continue to maintain or increase their physical office presence.
According to industry experts and commercial property developers, renovations are a strong indication of higher demand activity once a large number of workers return to the office. Developers are also seeing existing tenants continue to consolidate and expand their presence in most of the smaller markets across the country. Data from Knight Frank India showed that the total office space taken up in major cities reached 12.5 million square feet during the quarter, representing a growth of 168% year over year. Office, a strong vaccination rate along with fewer restrictions on movement, and an improved business environment support the recovery to the levels of market traction seen in pre-pandemic times.