Net office space leasing may fall 14 percent in 2020 on lower supply: JLL India

Net leasing of office space could decline by up to 14 percent this year to over 40 million sq ft across seven major cities on estimated fall in supply, according to global property consultant JLL.

During 2019, the net office space leasing rose by 40 percent to an all-time high of 46.5 million square feet as against 33.2 million sq ft in 2018. New supply rose 45 percent to 51.6 million sq ft last year, from 35.7 million sq ft during 2018.

For 2020, JLL India pegged net office space leasing at over 40 million sq ft and a new supply at 47.5 million sq ft.

JLL tracks office leasing of seven major cities -- Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata.

"Despite an expected decline of office space supply in 2020, net absorption is likely to clock a robust over 40 million sq feet mark backed by significant pre-booking or pre-leasing of space by occupiers," JLL India said.

The net absorption for the year 2020 will be much higher than the annual average for the last five years which stood at 35 million sq ft, it added.

The consultant said that pre-leasing or pre-commitment of office space by corporates and co-working operators remains strong despite the economic slowdown.

"The strong pre-commitment activity is an indication of the intrinsic strength of the Indian office market. Moreover, it bears testimony to the increasing importance of real estate in the business plan of corporate occupiers," JLL India CEO & Country Head Ramesh Nair said.

He emphasized that corporates need to plan for future space requirements, particularly in cities having a shortage of quality office space.

"Hence, single-digit vacancy markets drive pre-commitment levels with large companies finding it viable to commit to office spaces in the under-construction phase," Nair said.

JLL India said that IT-ITeS occupiers account for a majority of the pre-commitment leases across most of the top office markets in India.

They constitute more than 50 percent of the pre-committed office space in 2020.

"These occupiers require larger floor plates and this type of arrangement becomes a necessity in markets with limited availability of Grade A office spaces, said Samanthak Das, Chief Economist and Research Head at JLL India.

US-based JLL is a leading professional services firm that specializes in real estate and investment management.

A Fortune 500 company with annual revenue of USD 16.3 billion, JLL operates in over 80 countries and a global workforce of more than 93,000 as of September 2019.

In India, JLL has a presence across 10 major cities with a strength of close to 12,000 professionals.

Source Code: Business Standard

Recent Blogs

The 5 biggest reasons why companies are choosing coworking spaces over traditional offices

Office Space Demand -2019

Myths related to co-working spaces

Co-working players drive office space demand in 2019

Findmycowork-India’s First ever search engine -Revolutionising the Real Estate Sector

5 co-working space etiquettes that you have to adopt immediately

5 fatal mistakes businesses make when booking a coworking space

5 ways how coworking can boost your business and take it to the next level

IT Companies-Shifting to Flexible Work-spaces

How will Findmycowork enable technology with Flex spaces thereby bring a radical change in Commecial Real estate sector

India’s first ever search engine for Co-working spaces

GTF Startup Summit-Supported By FindMyCowork

Top 5 trends which will make Co-working big in 2020

Managed Office Spaces:New *Trend

How beneficial are Co-working spaces over traditional commercial spaces

5 big reasons to invest in Indian coworking real estate right now

The 5 biggest myths about coworking spaces

5 Expert Tips on how to choose the right co-working space for you

Why a virtual office is a right choice for your growing business in 2020

Coworking spaces in Chandigarh

Coworking Workspaces in ​the Capital City - Delhi

Legal Requirements for starting a Co-working space

Start-Ups and Co-Working – The latest BFF's

Freelancing – The latest Buzz in the BIZ World

Perks of a Virtual office

10 Reasons to book workspace online

Co-living, co-working yield higher rent than traditional models

How can workplace influence Human Behaviour

Co Café - An emerging work culture in reputed cafés

Effective Marketing Strategies For Your Co-working Workspace

Traffic Slowing You Down - Try Coworking Space

Co-working companies eye banquet halls, lounges for office space

Hype of Co-working in Hyderabad - Emerging Commercial Hub

Coworking Workspaces in Mumbai - Financial Capital of India

India’s first ever Search engine for Direct Booking of work-spaces launches Rating and Reviews for Co-working office spaces

Top 3 Reasons to Choose Business Centre in Bandra Kurla Complex Mumbai

CBRE - India Flexible Space Digest

Net office space leasing may fall 14 percent in 2020 on lower supply: JLL India

Converting your office into a co-working space

Co-working Work-spaces in Gurugram - The city of Millennial's

Booming Commercial in Hyderabad - witness growth by 10 million sq ft

4 Signs you are ready for an Office Upgrade in 2020

6 Reasons Why Corporate Must Plunge into Serviced Offices

Housing market shows resilience, office segment on a strong footing

Coworking Expansion in 2 tier cities - Chandigarh