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representative imageKLA TenkorThe California-based provider of process control systems has leased 320,000 square feet of office space in the upcoming DLF Downtown in constellation Chennaisaid three people with knowledge of the deal.
He did not provide any financial details of the deal, but said it is one of the biggest transactions seen in the commercial leasing sector in the city. The company is expected to shift to the new office within the next three months, he added.
CBRE, a global asset advisor, was the transaction advisor for the deal.
Shriram Khattar, Managing Director, Rental Business, DLFdid not comment on the deal but said the initial phase of DLF Downtown at Taramani in Chennai should be completed in the next few months.
“It is over 80% leased and we are confident of leasing out the remaining space before the completion of this phase of the project.
ET’s email queries to KLA Tenkor and CBRE remained unanswered till press time.
“The second phase of 1.1 million sq ft is also under construction and has also been leased out. We have the potential to develop 3.5 million sq ft more at this site,” said Khattar.
Of the 3.5 million sq ft, DLF has pre-leased 2.6 million sq ft, with an average rent of around Rs 80 per sq ft per month.
DLF Cyber City Developers Limited (DCCDL), Rental Branch of DLF LimitedReported revenue of Rs 5,419 crore in FY23, a growth of 19% year-on-year.
In 2022, the absorption of office space in Chennai is set to reach around 6.1 million sq ft, showing a year-on-year growth of 63%.
In the first quarter of 2023, Chennai witnessed a 19% increase in leasing activity as compared to the previous quarter, with around 2.0 million sq. ft. of space being taken up.
The city accounts for 10% of the total office stock of India.
In terms of supply in 2022, Chennai is set to witness a supply addition of around 4.1 million sq ft, a significant year-on-year increase.
DLF is witnessing good demand for new developments, indicating a clear shift by large corporates towards quality workplaces.
According to a report by ICICI Securities, from January 2023 onwards, global macro headwinds in the form of rising interest rates and a slowdown in tech MNC hiring (MNCs account for 67% of Indian office space demand) are likely to impact large leasing decisions. There has been a recession.
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