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3 Commercial Real Estate (continued)
The characteristics of each of these segment is presented in the table below:
Micro-market
Locations
Description
CBD and
Off-CBD
MG Road, Lavelle Road, Infantry
Road, Vittal Mallya Road, Palace Road,
Residency Road, Millers Road, Richmond
Road, Queens Road, Cunningham Road,
Ulsoor Road, Kasturba Road, Victoria
Road, Brigade Road, Murphy Road
Being the foremost commercial business district of Bangalore,
it houses major banks, financial institutes, insurance
companies, few corporate and IT/ITES companies.
As of 2014, the CBD and Off-CBD market has a total stock
of approximately 10.38 million sq ft. The vacancy rate during
2014 was estimated at 14.4%. During 2014, the CBD/Off-CBD
market attracted rentals in the range of 65-90/sq ft/month.
Suburban
Business
District (“SBD”)
Koramangala including Adugodi (Hosur
Road), Bannerghatta Road up to Outer
Ring Road, Indiranagar, Hosur Road
(till Silk Board Junction) Airport road
including Intermediate Ring Road, CV
Ramannagar, JP Nagar, Jayanagar and
Old Madras Road
Located at a distance of 5-7 km from the CBD, these locations
house many medium sized IT/ITES companies.
As of 2014, the stock of office space in suburban markets
can be estimated as 28 million sq ft. Vacancy in the
suburban markets as of 2014 was registered at 7.9%.
During 2014, the Suburban market attracted rentals in
the range of 60-90/sq ft/month, based on the type of
property and the location.
Peripheral
Business
District (“PBD”)
Whitefield, Electronic City, Outer Ring
Road (Hebbal Flyover – Sarjapur Road),
Hosur Road (From Silk Board Junction
– Electronic City), Hebbal and Bellary
Road (including Yelahanka and Jakkur)
Peripheral locations currently account for 70-80% of the city’s
absorption due to availability of large contiguous spaces.
The stock in these markets is estimated to be around
87.9 million sq ft. Vacancy in these markets as of 2014 was
approximately 14.4%. During 2014, the peripheral market
attracted rentals in the range of 25-60/sq ft/month, based
on the type of property and the location.
Source: C&W Research
