Tech, engineering, manufacturing firms lead office space in Chennai: Report

Technology firms and those companies engaged in engineering and manufacturing sectors were the majority of the entities to pick up office space in the city, according to a report released by real estate consulting firm CBRE South Asia on Saturday.

As per the latest office report ‘CBRE India Office Figures Q1 2022′, the total office leasing for the quarter (ending March 31, 2022) was at 2.3 million square feet in Chennai.

“Thirty four per cent of the offices leased were by technology firms, engineering and manufacturing (both registered) 30 per cent and banking, financial service and insurance (BFSI) companies comprised 13 per cent”, the report said.

The overall office supply witnessed in Q1 of 2022 was around 9.4 million square feet which was a 11 per cent decline year-on-year basis.

Bengaluru, Hyderabad and Chennai dominated development completions, accounting 70 per cent, the report said.

“…we expect the positive momentum to further strengthen in 2022. We continue to witness a pickup in long-term decision making by occupiers, aided by ‘return-to-work’ strategies accelerating project completions,” CBRE chairman and CEO India, South-East Asia, Middle East and Africa, Anshuman Magazine said.

The entry of new occupiers is driving a robust recovery of Chennai’s office market, CBRE India, Tamil Nadu and Kerala, Head-Operations, Ameeth Raja said.

“With the IT segment leading supply and absorption, we expect office leasing to touch a new peak in 2022. With accelerated expansion opportunities, we expect further growth in the southern markets,” he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor