The popular ed-tech company, Byju’s, has leased 5.5 lakh sq. ft. of office space at Kalyani Tech Park in Bengaluru.
Story so far: Bengaluru has held its position as the foremost market for office space with total leasing of 3.5 million square feet (msf). Byju’s has recently leased office space at Kalyani TechPark in the city, making this one of the many big transactions the market has seen. The company has offered to pay about ₹95 per sq. ft. for the 5.5 lakh that it has leased.
- There is an escalation clause of 5% yearly on the previous year’s rent in the agreement.
- Due to the establishment of new startups and renewals in the market, space take-up has increased in the last quarter.
- 1 million of the total workforce of Bengaluru is expected to return to office spaces by the first six months of 2022 in a phased manner.
What this means: The Byju’s transaction has triggered consolidation in an industry that was flailing during the pandemic. The office segment is expected to return to its pre-Covid activity in the following quarters, thereby strengthening the Indian economy.