“Around 10% of the total office market demand is currently driven by ecommerce companies.This segment was not there till two years ago,“ said Rajat Gupta, managing director transaction services at CBRE South Asia.
The cities that lead the demand include Bengaluru and Gurgaon, he said. Last year, Flipkart completed India’s single largest office space leasing deal, signing up for a 2 million sq ft custom built office campus in Bengaluru, as the ecommerce company seeks to expand operations and workforce.
“We have seen active interest from ecommerce companies which are now an important segment of our company,“ said Mike Holland, CEO Embassy Office Parks, a joint venture between Embassy Group and USbased private equity firm Blackstone.
India is the fastest growing and t the third largest start-up ecosystem globally , said a NASSCOM Startup Report 2014. In vestors pumped in $9 billion into Indi an startups last year -that’s 50% of the past 5 years’ total deal value. “By 2020, there would be about 11,500 star tups, employing over 250k people,“ said the report. This has prompted startups and online companies to expand their presence in the country. For instance, Ola recently signed on 20,000 sq ft of prime office space at Embassy Golf Links in Bengaluru, while fashion etailer Jabong ook a 1 lakh sq ft office space in he National Capital Region. On ine marketplace Snapdeal.com also consolidated its offices last year and relocated to 450,000 sq. ft campus, while Pinelabs, a payment solutions firm, leased 60,000 sq ft in Gurgaon. “We have clearly seen green shoots emerging, in erms of space requirement, from ecommerce and startup segments n the last calendar year. We are expecting more requests for proposals coming in from companies n this segment,“ said Vivek Rachh, director, corporate solu ions, Panchshil Realty.
According to JLL, India’s office space absorption in 2015, at around 36 million sq ft, was the second highest after 2011.