JP Morgan India Leases Massive 5.6 Lakh Sq Ft Office Space in Bengaluru for 7+ Years
Bengaluru's real estate market is on fire! JP Morgan India has leased a whopping 5.6 lakh sq ft office space in Embassy TechVillage for over 7 years. But is this a sign of a booming market or a bubble waiting to burst?
Bengaluru Real EstateOffice SpaceJp MorganEmbassy ReitLease AgreementReal EstateAug 26, 2024
According to documents accessed through real estate data analytics platform Propstack, the starting monthly rent is ₹4.47 crore. The terms of the agreement also include access to parking space for 724 cars.
Embassy Tech Village is an integrated office park spanning over 84 acres on the Outer Ring Road between Marathahalli and Sarjapur Road. It comprises a total of 27 blocks, with about 7.2 million square feet of constructed and leased office space, and another 1.9 million square feet under construction.
The 86-month lease period will see rent escalation of 15% every 3 years, to ₹92 per sq ft per month starting November 2027 and ₹106 per sq ft per month from November 2030 onwards. The deal can be renewed up to two times for a period of 5 years each, subject to certain conditions.
Vikas Telecom Private Limited, the lessor, owns 6.2 million square feet of completed office property, approximately 1.9 million square feet of under construction area, and 518 proposed hotel keys along with associated common area maintenance services in Embassy TechVillage.
This is not the first time JP Morgan has leased office space in Bengaluru. The company has leased several offices across Bengaluru, Mumbai, and Hyderabad.
The agreement includes a security deposit equivalent to six months of rent or ₹26.86 crore, to be paid in two installments. Queries have been sent to both JP Morgan Services and Vikas Telecom, and the story will be updated if/when a response is received.
Embassy REIT is a leading player in the Indian commercial real estate market, with a portfolio of over 34 million square feet of office space across India.JP Morgan Services India Private Limited is a subsidiary of JP Morgan Chase & Co., a leading global financial services firm.
Frequently Asked Questions
How much office space has JP Morgan leased in Bengaluru?
JP Morgan has leased 5.6 lakh square feet of office space in Embassy TechVillage, Bengaluru.
What is the starting monthly rent for the leased space?
The starting monthly rent is ₹4.47 crore.
How long is the lease period?
The lease period is 86 months, with an option to renew for up to two times for a period of 5 years each.
Who is the lessor for the leased space?
Vikas Telecom Private Limited is the lessor for the leased space.
What is the security deposit for the lease agreement?
The security deposit is equivalent to six months of rent, or ₹26.86 crore, to be paid in two installments.
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