BENGALURU: Microsoft is close to signing a nine-year lease deal with Prestige Group for a 600,000 sq ft office space in Bengaluru, three people aware of the development said.
“The deal is in the final stage of closure,“ they said, adding that the lease is renewable every three years. The Redmond-based technology company , which currently operates out of Embassy Golf Link in the city , is looking for more office space as part of chief executive Satya Nadella’s plan to tap the local market and its engineering talent.
A spokesperson for Microsoft did not confirm the talks but said: “We have a large employee base in Bengaluru and they work out of different offices in the city. We regularly undertake a strategic assessment of our real estate portfolio in Bengaluru to ensure that we have the right long-term plan in place to support our business growth. We will share more details as we finalise our plans.“
One of the persons quoted earlier said: “The company is looking to move its employees by the first half of this year. It is expected to merge many of its India operations and serve as a base for further expansion.“
The new campus will seat 6,000 employees, he said. Earlier, Microsoft was scouting for 1.1 million sq ft of space in Bengaluru for a built-to-suit campus.
The company, which has offices in 10 locations across India, had planned to invest $1billion in the campus over five years. In anticipation of a growth in business, many companies have committed to acquiring office space in Bengaluru, the country’s technology hub, reducing the pool of available space in the city.
Recently, Apple leased over 40,000 sq ft of office space in the city where it intends to set up a development centre, three people familiar with the matter said. In 2015, US-based Google had taken 100,000 sq ft of office space on lease in Bengaluru’s Bagmane World Technology Centre. It is also setting up a 7acre campus in Hyderabad, which will be its biggest outside the US.
Last year, India’s office market segment saw deals for over 43 million sq ft of space, touching an all-time high with a 9% year-onyear growth, said a CBRE India report.
Bengaluru and the National Capital Region dominate leasing on an annual basis with 47% share. ITITeS firms continue to lead office transaction activity, accounting for about 50% of the transaction activity during the last quarter. However, corporate occupiers are likely to remain cost-sensitive, consider adoption of workplace strategies for efficient space-utilisation.