by THO
Flexible workspace solutions provider, WeWork India, has renewed a lease agreement for 1.40 lakh sq ft office space in Mumbai at a monthly rental fee of ₹2.25 crore, property registration documents accessed through real estate data analytics platform Propstack showed.
According to the documents, the space leased by the co-working player includes multiple units spread across five floors, alongside parking for 104 cars, in Tower 4 of Nesco IT Park, located in Mumbai’s Goregaon East suburb.
“NESCO IT Park has been a strategic partner in our growth story in the West region. We have had a longstanding and productive collaboration with them in Mumbai, and we look forward to continuing it with this renewed lease agreement,” said Arnav S Gusain, Chief of Supply, WeWork India. The company did not share details tied to the previous lease agreement.
At a rate of ₹162 per square feet, the rental fee for the first year will amount to a total of ₹27 crore, according to the latest agreement. Terms of the deal include a 12% rent escalation to ₹181 per square feet in August 2025 and ₹203 per sq ft in August 2028, the documents showed. The renewed five-year lease period begins on August 1, 2024.
Also Read: WeWork India leases over 1.4 lakh sq ft office space in Bengaluru, Noida
The renewal deal, registered on July 16, named Mumbai-headquartered Nesco Limited as the licensor and involved a stamp duty of ₹37.93 lakh, per the documents.
“As we further expand our presence across the country, we will continue to engage in many more fruitful deals with our existing and other leading developers in India,” Gusain said.
Queries mailed to Nesco Limited by HT.com did not elicit a response till press time. The story will be updated when a response is received.
This comes after WeWork India on July 25 announced that it has taken up two new office spaces spanning 1.4 lakh square feet cumulatively, across Noida and Bengaluru.
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“There is a clear demand for flexible workspaces that offer a dynamic work environment for enterprises, professionals, freelancers, and startups to connect and collaborate,” Gusain said in the company statement.
WeWork India is operated by Bengaluru-headquartered real estate player, the Embassy Group, which holds over 70% stake in the company. Since the brand’s entry into India in 2017, it has expanded its footprint to over 8 million square feet across 57 locations in eight cities.
Flexible office segment in India
Owing to fundamental advantages such as flexibility and affordable pricing, this arm of the commercial real estate segment in India has demonstrated a consistent upward trajectory following the Covid-19 pandemic. According to a June 2024 report by property consultancy Colliers, the flexible office space segment across the top six cities in India registered its highest ever quarterly demand in the April-June period at 2.6 million square feet.
Also Read: BHIVE coworking leases commercial space from Adani Realty for ₹1.39 crore a month
In the ongoing fiscal quarter, several large and upcoming co-working players, including the likes of Gurugram-based Incuspaze and Synq.Work, among others, have announced multiple deals and expansion plans, in a testament to the unabating growth of this segment.
