Qualcomm takes 1.8 million square feet office space on lease in Hyderabad

10 Oct 2022 , 02:21 PM

In one of the largest office leasing transactions, the American multinational business Qualcomm took approximately 1.8 million square feet in lease over a 20-story commercial tower in Hyderabad’s information technology park, according to news reports.

The establishment of this office will be Qualcomm’s largest of its kind outside of the US.

According to the terms of the contract, the corporation will pay over Rs3,054 crore in rentals over a 15-year period, including escalations of 15% every three years.

The property is not currently included in the listed Mindspace Business Parks REIT, which is supported by K Raheja Corp. The right of the first offer (ROFO) for this asset, however, is held by the REIT. The agreement for this custom office is a part of a prior pre-commitment Qualcomm made.

In addition to numerous locations in Hyderabad, Qualcomm also maintains offices in Mumbai, Bengaluru, and Delhi throughout the nation. Qualcomm has a 1 million square foot office presence in the Mindspace IT park of K Raheja Corp. in Hyderabad alone.

Hyderabad-based firm offices are probably going to be included in this consolidation strategy.

Over 17,000 people, including those already employed by the company in Hyderabad who are anticipated to relocate there and new hires who will be a part of its India expansion strategy, are anticipated to work at the new office.

The project, which spans about 9 acres, is almost finished and is planned to be delivered by the end of this year when the business is anticipated to begin functioning from this location.

Office real estate has made a significant comeback in India’s primary commercial property markets after overcoming the barrier posed by the work-from-home concept.

Record net absorptions in the first nine months of 2022 have been supported by robust supply completions and healthy pre-commitments.

In the first nine months of 2022, the top seven cities saw net office absorption increase by 107% year over year to 30.3 million square feet, supported by strong supply completions and excellent pre-commitments, according to a JLL India report.

Particularly the market with the largest net absorption has been Hyderabad. More than half of the net absorption has been accounted for by the southern markets of Bengaluru and Hyderabad.

Even though Covid-19 did have an effect on the market, there has been to be a long-term need for offices from international organizations that operate out of India. Office tenants typically consider the long term when making leasing decisions, but many tenants are taking advantage of the current environment to negotiate favourable terms with landlords.

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