Chennai: Chennai city’s office space net absorption increased from 0.20 million square feet in Q3 2020 to 0.86 million square feet in Q4 2020. This was backed by strong pre-commitments in new completions during the quarter.
A press release said, IT, BFSI and e-commerce sectors were the major space takers during the quarter. The market also witnessed MSMEs and small IT firms relocating from CBD to lower cost submarkets.
On an annual basis, the city witnessed net absorption of more than two million square feet, which is ~70 per cent of the levels witnessed in 2019.
The quarter witnessed nearly three million square feet of new completions.
“Rental values remained stable across all the submarkets in the city. However, landlords in properties with high vacancy rates continue to offer benefits such as increased rent-free periods and reduced CAM charges to attract occupiers,” said Siva Krishnan, managing director, Chennai, JLL.
As for total India’s office market, it continues to recover witnessing a net absorption of 8.27 million square feet, an increase of 52 per cent in Q4 2020 (Oct-Nov-Dec) when compared to Q3 2020.
Except for Bengaluru, net absorption of office spaces improved in the other six cities (Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune) according to JLL Research.
Hyderabad led the pack with the highest net absorption in Q4 2020.