Amidst the aim towards “Back to Office” culture, Tata Consultancy services, (TCS), has made a huge investment in leasing a large property in Noida. This is Delhi NCR’s largest office space deal in the recent times.
TCS has leased the space at one of Noida premium locations. It has taken space in Assotech Business Cresterra (ABC), a grade A office property, on the Noida expressway. ABC is spread across 2 million sq ft, in sector 135, Noida. TCS has not just leased the entire tower 6 but also some floors in tower 3 and 5 in the ABC complex. Genpact and Celebal Technologies had also taken up space in the same complex.
Assotech Business Centre is located in sector 135 Noida, and is a ready to move project. The project has 6 towers, of 17 floors each and vast dimensions. Assotech Business Centre is spread across 12.98 acres with 70% open area. The property offers various customization in case you wish to invest in shops. The property has all basic amenities needed in a business center like food court, cafeteria, waiting lounge, power backup and CCTV security. The property offers, office space, shops, co-working spaces and bare shell offices.
As noted by Vibhor Jain, Managing Director, North India, Cushman & Wakefield, large corporations have implemented return-to-office policies refueling demand for high quality grade A office spaces. Particularly, with the IT companies, ending work from home, a surge in demand for Grade A office space is expected in the coming quarters.
Delhi-NCR has recorded the highest leasing volume powered by the flex space sector. It has seen a gross leasing volume of 3.7 million sq ft in the last quarter of 2023, October- December. This was the highest volume recorded during the previous year. This indicates a 10% increase over the last quarter.
Out of this gross leasing volume, 11% was precommitments and 83% was fresh space take-up. As already mentioned, flex space sector, was the largest consumer of space in the last quarter of 2023, locking 24% share. It was ahead of the otherwise leading IT-BPM sector, which held a close 23% share in leasing during the same time.
In 2023 the total annual launches reached 4.9 million sq ft. Out of this approximately 2.9 million sq ft was added in the last quarter itself. With this supply surge the vacancy rate has increased by 50 basis points. It is only a marginal increase on a quarter-on-quarter basis.
If forecasts are to be believed, there will be an emergence of over 19 million sq ft space between the years 2024 and 2026. Of this 44% is likely to be in rime areas like Gurgaon and Noida. This will increase the vacancy rate further. But a strong demand is also anticipated during the same time that will counteract and keep the vacancy ratio in check.
TCS CEO, K Krithivasan, upheld that the IT giant is only looking at ending the work from home culture and do not intend to reduce work force or hiring speed. This is the reason for the big investment in Grade A office space in a prime location in Noida. TCS is a well-known IT giant currently employing 6,00,000 people. There is an increase in work demand and as per the CEO the firm will adjust its hiring process accordingly.