WeWork India Expands with Major Lease in Pune's Wakad

WeWork India, a leading provider of flexible workspaces, has secured a substantial lease of over 204,000 square feet in Pune’s Wakad locality. The lease is part of the Phoenix Millennium Tower 3 and spans five floors, from the 13th to the 17th. This strategic move underscores the growing demand for managed workspaces beyond traditional central business districts.

The lease agreement covers the 13th, 14th, and 15th floors for a 10-year term, while the 16th and 17th floors are leased for a five-year period. The monthly rent is set at ₹73 per square foot, resulting in a total monthly outgo of over ₹1.49 crore. The agreement includes a 12% escalation after the first three years, followed by a 13.5% increase every subsequent three-year cycle.

A security deposit of ₹4.47 crore has been agreed upon, as per documents accessed via Propstack. The 13th to 15th floors are scheduled to be ready for commercial use by November, while the 16th and 17th floors are expected to be operational by August.

In a parallel arrangement, WeWork India has subleased portions of the 13th, 14th, and 15th floors to three tenants. These subleases are expected to commence from August 2026, with rentals set at ₹255 per square foot per month. WeWork India confirmed the details of the deal in a response to an email query from ET, stating that the necessary disclosures have been made to the stock exchanges.

The transaction highlights the robust leasing momentum in Pune’s office market, particularly in emerging hubs like Wakad. This area is attracting significant interest from flexible workspace operators and technology-led occupiers due to its strategic location and connectivity to the Mumbai-Pune Expressway and the proximity to the Hinjewadi IT hub.

WeWork India’s expansion reflects a growing trend of demand for managed workspace formats beyond traditional central business districts. This demand is driven by cost advantages, distributed workforce strategies, and the expansion of global capability centres and technology firms into tier-1 and tier-2 office markets.

Phoenix Millennium Tower 3 is a key part of the broader commercial development ecosystem in Wakad, which has emerged as one of Pune’s fastest-growing office micro-markets. The area’s development is supported by its connectivity and proximity to major IT hubs, making it an attractive location for startups, IT services firms, and enterprise clients seeking scalable office solutions.

The deal adds to a growing pipeline of flex workspace leasing in Pune, where operators continue to expand their footprints amid steady occupier demand. This trend is expected to continue as more businesses recognize the benefits of flexible and managed workspaces in terms of cost efficiency and adaptability.