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5 Supply, Absorption andVacancyTrends
In the last seven years Bangalore and Whitefeld micro
market had witnessed steady supply and absorption
of offce space. In particular in the last 4-5 years, as
compared to the major cities in India like Mumbai,
NCR, Pune, Kolkata, Chennai and Hyderabad, Bangalore
has witnessed the highest quantum of offce space
absorption. The below chart represents the supply,
absorption and vacancy trend for the city since 2009:
A snapshot of the supply, absorption and vacancy trend
for the city is as below (based on C&WI research):
The total stock of non-captive commercial offce
space in Bangalore from as at December 2013 is
approximately 116 million sq ft (including Grade A and B
offce space).
The total absorption of commercial offce space in
Bangalore from January to December 2013 has been
approximately 8.50 million sq ft (approximately 1%
higher than the previous year)
The supply of commercial offce space from January
to December 2013 declined by around 34% at
approximately 5.80 million sq ft vis-a-vis the commercial
offce supply in the year ending 2012 at approximately
8.81 million sq ft.
The expected commercial offce space supply in
Bangalore in the next 2-3 years is expected to be
approximately 27 million sq ft.
The rentals in various micro markets of the city have
remained stable vis-a-vis the rentals of commercial
offce space in the year ending 2012.
The vacancy level for commercial offce space in
Bangalore as on December 2013 was approximately
14% and that as on December 2012 was 14.3%.
The peripheral market of ORR will continue to remain
the preferred occupier destination considering the
concentration of pre commitments in this location
during this year. Going forward, rental levels are
anticipated to hold on to the same levels.
The details of some of the leases in Bangalore from
January to December 2013 are as under:
14
12
10
8
6
4
2
0
FY08/09 FY09/10 FY10/11 FY11/12 FY12/13
Area in million sq ft
Vacancy (%) Supply (in million sq ft) Absorption (inmillion sq ft)
Source: Cushman &Wakefeld
15%
17%
12%
14% 14%
Projects Micro Market Lessee
Area leased
(in sq ft)
Divyasree Technopolis Old Airport Road Thomson Reuters 440,379
Bearys Global Research Triangle Whitefeld Schneider Electric India PVT LTD 400,000
Bagmane Constellation Business Park Outer Ring Road Samsung India 354,400
Manyata Embassy Business Park Outer Ring Road Cerner 343,024
Mantri Commercio Outer Ring Road JDA Software Group, Inc 289,000
Brigade World Trade Centre Malleshwaram Amazon 265,000
PS Mac Electronic City Infosys 150,000
First Face Technology Park Whitefeld Microchip Technology Design 142,777
Pritek Park (Block 11) Outer Ring Road Genpact 120,000
Embassy Tech Square Outer Ring Road Inmobi 111,215
Prestige Shanthinikitan Whitefeld Britannia Industries Limited 100,000
Source: Cushman &Wakefeld
Bangalore commercial market overview