Axis Bank Ltd has leased 81,000 sq ft of commercial space in the Parle Product Factory Compound, Vile Parle, Mumbai for five years with a starting monthly rent of ₹85.37 lakh, documents accessed by FloorTap.com showed.
Axis Bank has paid a security deposit of ₹5.12 crore for the deal that was registered on January 31, 2024, the leave and license agreement showed.
The total area leased is 81,309 sq. ft (total carpet area). The license commencement date is February 1, 2024 and the rent commencement date is September 16, 2024.
A rent escalation provision has also been included in the agreement. There will be a 12% increase in rent after three years from the lease commencement date, the document showed.
The deal includes 81 four-wheeler parking spaces and 300 two-wheeler parking spaces, the document showed.
Parle declined to comment for the story while HT Digital’s email query to Axis remained unanswered.
Barclays had earlier leased 64,995 sq. ft. in a building known as Altimus in Worli, Mumbai, for five years at a starting monthly rent of ₹2.08 crore, documents accessed by FloorTap.com showed.
According to media reports, Axis Asset Management Company, the mutual fund investment entity of Axis Bank, had taken two floors on lease in Macrotech Developers’ commercial tower in Mumbai’s Lower Parel last year.
A report by JLL India had said that the net absorption in India’s top seven office markets breached the 40 mn sq ft mark and stood at 41.97 mn sq ft in 2023. It also noted that there has been a shift in demand composition, with the tech sector’s share decreasing to 20.9% in 2023, its lowest in over a decade. In contrast, there has been increased traction from the manufacturing/industrial and BFSI sectors, particularly through the establishment of GCCs. Both segments set new records in leasing volume, with each leasing around 11.3 mn sq ft of office spaces during the year.