Over 26% office space in Bengaluru may require upgradation

BENGALURU: The commercial property market in Bengaluru has a potential to upgrade 35 million sq. ft. of Grade A office space with an investment opportunity of around Rs 1,310 crore, said JLL India.
”In this era of change, the biggest characteristic that defines today’s workplaces is continuous innovation. With a diverse working population spanning baby boomers to “Gen Zs”, it is time to futureproof commercial spaces including offices to meet the emerging needs of a demanding workforce as well as deliver on the community’s sustainability promise,” said Ramesh Nair, CEO & Country Head, JLL.

In Bengaluru, the quantum of existing Grade A office space completed 10 years ago stands at 34.5 million sq. ft. accounting for 26% of the city’s total stock, JLL India said.

”For owners, upgradation based on user preferences and technology infusion will be a critical element in a building’s lifecycle management in the near future. The question is no longer ‘if’ but ‘how soon’ can we do this,” said Harish MV, Managing Director (Projects and Development Services), JLL.

Rental escalation of up to 25% possible in upgraded submarkets. The CBD and SBD, which are the most sought after office destinations offer the maximum scope for rental escalation while peripheral submarkets like Electronic City offer very limited upside.