Wells Fargo India branch renews lease on two commercial buildings in Bangalore
The San Francisco-based company has extended the lease of its Embassy Tech Village (ETV) – owned by Embassy REIT – in Bangalore’s Outer Ring Road.
“Wells Fargo has renewed the lease for this space, which houses its technology back-end offices, through June 2032, with a 15% increase in existing rentals every three years,” two people with knowledge of the announcement said. ‘OK.
“The ETV office currently houses 7,000 employees for the company. There are two other terms available for the company,” said one of the people quoted above.
Last year, in the biggest office deal in Hyderabad, the company leased an entire office building with an area of over 1.3 million square feet in Divyasree’s Orion project in Hyderabad.
ET’s email inquiries to Embassy REIT and Wells Fargo went unanswered.
ETV currently has 7.2 million square feet of developed assets and 1.9 million square feet of assets under development.
The business park is home to top companies such as Flipkart, Cisco, and JPMorgan Chase.
The company also raised its fiscal 2022 guidance for new rentals from 4,00,000 square feet to 1 million square feet.
Embassy REIT had already completed 7,00,000 square feet from April to December 2022 and added eight new occupants, including high-growth sectors such as SaaS, logistics and e-commerce.
Despite much-talked about working from home and the outbreak of the Covid-19 pandemic, occupants of large office complexes across the country, including large corporations, are renewing their leases.
Last year, many large companies opted for the renewal of large office space in key office markets with several large transactions that have been concluded recently.
Some of the big deals done recently include Cisco signing 2.7 million sqft, Tata Consultancy Services (TCS) signed around 1.3 million sqft, Concentrix signed 8.46 lakh sqft, JP Morgan 8.44 lakh square feet, IBM 7.93 lakh square feet and Amazon 6.34 lakh square feet in major Indian cities.
Demand for office space is expected to recover in the next quarter after the slowdown in the third wave and the return of employees to the workplace. Based on hires over the past 18 months, incremental office space demand from the top 5 IT companies is expected to reach nearly 1.08 million square meters (11.67 million square feet) over the next two years.