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CITY REPORT
BANGALORE OFFICE MARKET
Q3 2010
BNP Paribas Real Estate
All the buildings blocks
In India our specialists bring you our expertise in Transaction Advisory,...
CITY REPORT
BANGALORE OFFICE MARKET - Q3 2010
Summary p. 4
Macroeconomic Context p. 5
Bangalore Map p. 6
Central Business ...
4I I
SUMMARY
The rental and capital values remained stable during Q3
2010 mainly due to the absorption of second generatio...
5I I
CITY REPORT
BANGALORE OFFICE MARKET - Q3 2010
Repo Reverse Repo
Repo & Reverse Repo Rate
7
6
3
Percent
1
SLR CRR
CRR ...
6I I
BANGALORE MAP
Coce urs ad
a e Ro
R Race
Course
Raj
Bhavan
Vidhan
Soudha
High
Court
Cubbon
ParkChikpete Rd
Kasturba
Rd...
7I I
CENTRAL BUSINESS DISTRICT (CBD)
Supply & Vacancy Trend
The total transaction volume recorded in the CBD during Q3 201...
8I I
Supply & Vacancy Trend
SBD witnessed a completion of 0.12 million sq ft of grade A office
space during Q3 2010. The v...
9I I
Competitive rentals in comparison to other
business districts is translating into large space
requirement from occupi...
10I I
RENTAL VALUES FOR Q3 2010
Rent
INR/ sq.ft/ month
CBD
PBD
SBD
Micro
Market
Q on Q
Change
75
28
49 0%
2%
0%
CAPITAL VA...
KEY TRANSACTIONS
11I I
CITY REPORT
BANGALORE OFFICE MARKET - Q3 2010
Source: BNP Paribas Real Estate, India
Q3 2010
Buildi...
12I I
CITY REPORT
BANGALORE OFFICE MARKET - Q3 2010
GLOSSARY
Q3:
Super Built-up Area (SBUA):
Carpet Area:
Sq.mt:
Mn:
New:
...
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City report - Bangalore Office Market - Q3 2010

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• Developers are upbeat because of increasing demand for Grade \'A\' office space from the IT/ITeS sector in the SBD and PBD
• Vacancy levels in PBD expected to rise due to increase in the stock by around 5 million.
• Vacancy in CBD and SBD expected to decrease due to lack of supply

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City report - Bangalore Office Market - Q3 2010

  1. 1. CITY REPORT BANGALORE OFFICE MARKET Q3 2010
  2. 2. BNP Paribas Real Estate All the buildings blocks In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting. With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure the success of your real estate project. With BNP Paribas Real Estate, all the pieces come together. www.realestate.bnpparibas.com BNPParibasImmobilier–13boulevardduFortdeVaux,75017Paris–FranceSASaucapitalde225205616€-RCSParis692012180–CodeNAF4110B Your contact in India: Bangalore: +91 80 4030 0334 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 8800 info.india@bnpparibas.com BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd
  3. 3. CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 Summary p. 4 Macroeconomic Context p. 5 Bangalore Map p. 6 Central Business District (CBD) p. 7 Secondary Business District (SBD) p. 8 Periphery Business District (PBD) p. 9 Rental Values & Capital Values p. 10 Key Projects p. 10 p. 12Glossary CONTENTS Key Transactions p. 11
  4. 4. 4I I SUMMARY The rental and capital values remained stable during Q3 2010 mainly due to the absorption of second generation spaces and lack of completion of projects in all the three micro markets. The total area leased during the third quarter was around 3.7 million sq ft which is around 3% more than the previous quarter. Given this performance, the first 3 quarters have witnessed transaction volumes of 9.2 million sq ft. Major portions of the transactions took place in the Tech parks and SEZs located in the Outer Ring Road and Whitefield precincts. The vacancy levels in the PBD region remained high due to availability of large SEZ spaces across the city which the developers are providing at competitive rentals in the micro markets. The vacancy levels are expected to decrease in the next few quarters as the number of enquiries from reputed blue-chip companies are on the rise and the developers are confident of closing large transactions due to the increasing demand and lack of new completions in the different micromarkets. The rental values in the CBD may see an increase in the coming months as the availability of large grade A commercial office space is less in comparison to the other micro markets and there is substantial enquires from organizations. Some of the developers are experiencing vacancies in their properties as the rentals quoted by them are far above the market levels. The rental values in the SEZs are expected to rise marginally as there is lack of sufficient supply to match the current demand for SEZ. The rental values are expected to witness a correction during the second half of 2011 when substantial amount of inventory would be added to the current stock. The Bangalore Metro Rail Project is on track as the testing of the railway line from Byappanahalli to MG road section has commenced. Other infrastructure projects such as construction of Flyovers and subways on the Outer Ring road are on full swing and expected to get completed on time. Soil testing for the Elevated Expressway from Hebbal to the New International Airport is underway and the construction is expected to commence in early 2011. CITY REPORT BANGALORE OFFICE MARKET - Q3 2010
  5. 5. 5I I CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 Repo Reverse Repo Repo & Reverse Repo Rate 7 6 3 Percent 1 SLR CRR CRR & SLR 30 20 10 5 Percent 0 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Mar-08 Nov-09 Jan-10 Mar-10 Gross Domestic Product (GDP) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 9.30% 8.80% 8.80% 7.90% 7.60% 5.30% 5.80% 6.10% Q3 2007 Q4 2007 Q3 2009 7.90% Q4 2009 6.00% Wholesale Price Index (WPI) 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Source: Confederation of Indian Industries Q1 2010 8.60% Apr-10 May-10 Jul-10 22-May-09 22-Jun-09 23-Jul-09 23-Aug-09 23-Sep-09 24-Oct-09 24-Nov-09 25-Dec-09 25-Jan-10 25-Feb-10 19-Mar-10 20-Apr-10 Sep-10 15 25 20-May-10 20-Jun-10 27-Jul-10 20-Aug-10 16-Sep-10 2 4 5 0 Jul-10 Q2 2010 8.80% 2-Jul-10 MACROECONOMIC CONTEXT The Central Bank takes a more sophisticated approach: maintains status quo on CRR & SLR The Reserve Bank's Review of Monetary Policy on July 27, 2010 expressed concerns over the global outlook. Indicators of economic activity in advanced economies continue to suggest that the recovery is slowing and that the second half of 2010 will post slower growth than the first, although expectations have generally not been revised downwards since end-July. Under the Liquidity Adjustment Facility (LAF), the RBI has increased the repo rate by 25 basis points from 5.75% to 6.0% and also hiked the reverse repo rate by 50 basis points from 4.5% to 5.0% with immediate effect. This will help maintain financial conditions conducive to sustaining growth, according to the RBI. India’s GDP during the quarter starting July 2010, rose to 8.8%. Although some of this is attributable to a favourable base effect, the growth rate indicates that the recovery is consolidating and the economy is rapidly converging to its trend rate of growth. Inflation remains the dominant concern in macroeconomic management. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% in the month of August. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even though there has been a rise in the interest rates, there hasn't been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates. Overall, even as the global environment continues to be a cause for caution, the big picture has not worsened significantly since July. India has replaced the US as the second most important Foreign Directive Investment (FDI) destination for transnational corporations during 2010- 2012, according to a survey conducted UNCTAD. In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China. DLF Limited 20,285 17% 4,110 2% Major Real Estate Companies in India Sales (In INR / In million) Profits (In INR / In million) Q3 2010 Q2 2010 Q on Q Change % Q3 2010 Q2 2010 Q on Q Change % Unitech 8,286 -22% 1,800 -3% India Bulls 4,337 25% 1,336 31% Sobha Developers 3,156 35% 343 72% Peninsula Land 1,483 -17% 500 28% Parsvnath Developers 2,528 -23% 318 82% Pheonix 404 10% 183 21% Omaxe Limited 2,529 40% 217 69% Mahindra Lifespace 679 31% 145 70% Anantraj 1,034 28% 459 5% Ackruti City 1,765 -8% 421 31% Ansal Properties 2,508 27% 369 -38% 5,414 1,745 4,257 589 1,226 638 443 890 247 1,624 550 3,197 228 221 23,690 4,186 3,544 368 1.329 480 6,445 1,740 1,955 579
  6. 6. 6I I BANGALORE MAP Coce urs ad a e Ro R Race Course Raj Bhavan Vidhan Soudha High Court Cubbon ParkChikpete Rd Kasturba Rd nroa y h o MR R d BrigadeRd WHITEFIELD Hoodi Brigade Tech Park Whitefield Whitefield Rd Rd BelaturRd Belatur Kodugodi Whitefield Kodugodi Rd Station Rd Bhattarahalli Rd Domsandra Sadarmangal 1MainRd 2 Main Rd Borewell Rd Vartur Rd Vartur Kere Vartur Adarsh Palm Retreat VarturRd Channapanhalli SouthernRailway Vartur Rd Marattahalli Innovative Multiplex Soul Space Bellandur Bellandur Tank Salarpuria Softzone Vimanpura HAL LB Shastri Nagar SuranjaindasRd OuterRingRoad Dodda Nekkundi Old Madras Rd KodihalliVictoria dR Cantonment Cubbon Rd Chinnaswamy Cricket StadiumSeshadri Rd KSRTC Bus Terminal Majestic Chikpete Elevated Rd Victoria Urvashi Albert Victor Rd KRRoad BullTempleRd Basavangudi Lal Bagh Lal Bagh Fort Rd Ulsoor Lake Wheeler Rd Munireddypalya Mattadahalli RamanamaharishiRd Nagavara NagavaraMainRd Hennuru M ain Rd Hennuru Krishnarajapura Ramamurthy Nagar Yellarnallappachetty Kere Chikkabanhalli Old Madras Rd Whitefield Rd Devasandra Bhattarahalli Anandapuram Bangalore HAL Airport Golf Course Chamarajpet Sarjapur Rd Outer Ring Road HSR Layout South End Rd Banashankari dRarupkanaK Uttarahalli li RdlaharattU Malleshvaram ChordRd West of Chord Rd Pineline Rd Magadi Rd ChordRd Link Rd Magadi Rd UniversityRd Hegganahalli dRillahanag ge H Bangalore City Railway Station Lottegollahalli Lottegollahalli Mattikere Yeshvantpur BelRoad Hebbal Kere Esteem Mall Nagavara Kere Cox Town HosurRd KanakpuraRd Chandrapura Madurai Begur BegurRd Kudlu KudluRd NH-7 Bannerghatta JP Nagar Mandivala Tank Mandivala Agara Kere adoR erosyM ChordRd Magadi Rd Bangalore Palace Bommanahalli Marigowda Rd Hosakerehalli Kere dRillU ahattar V asantpura Rd Dodda Kalsandra Kanakpura daoRattaghcnuhC ElectronicCity KambipuraRd Southern Railway Bangalore University UniversityRd Taj Westend Jayamahal Palace Karirobanhalli Rd Peenya Yeshvantpur Suburb Tumkur Road NH-4 C V Ram an R d OldTumkurRd Bupasandra Rd Jalahalli K odi gehalli Rd BELDefence Colony Byatarayanapura Rachana Halli Kere BellaryRd Agrahara BellaryRd Yelahanka New Town DodBallapurRdHindupurSouthernRailway Yelahanka Kere Bangalore International Airport Hyderabad Harohalli dRurtpnvahYes NH-7 Chikka Bommasandra Rajiv Gandhi Nagar Kodigehalli Kere Kodigehalli Southern Railway Banaswadi idawsanaB B Channasandra NH-4 Krishnaraja Puram Channasandra Baiyyappana Halli RillahanammaK d dR illahalaJ ChikkaBana v arRd Southern Railway Bagalakunte NH-4 Sarjapur Rd Chikka Nayakamahalli Salem Anekal NH-4 NH-4 Bangalore East Major Roads Roads River / Water Bodies Park / Green Area Railway Station CBD SBD PBD Airport Outer / Ring Road Inner 1 4 5 6 1 3 8 6 9 13 15 16 4 1 2 3 Rajaji Nagar Vijay Nagar 16 16 16 2 5 7 10 11 12 14 17 18 2 7 8 9 10 11 3 N 403, The Estate, 121, Dickenson Road Central Business District Secondary Business District Periphery Business District 1. Electronic City 2. Mysore Road 3. Whitefield 1. Cunningham Road 2. Langford Road 3. Lavelle Road 4. MG Road 5. Residency Road 6. Richmond Road 7. Richmond Town 1. Airport Road 2. Adugodi 3. Banerghatta Road 4. Bellary Road 5. BTM Layout 6. CV Raman Nagar 7. Domlur 8. Hebbal 9. Indiranagar 10. Jaya Nagar 11. Jayamahal Rd 12. Kammanahalli 13. Koramangala 14. Mekhri Circle 15. Old Madras Road 16. Outer Ring Road 17. R T Nagar 18. Shanti Nagar 8. St Marks Road 9. Ulsoor 10. Vasanth Nagar 11. Vitthal Malya Road CITY REPORT BANGALORE OFFICE MARKET - Q3 2010
  7. 7. 7I I CENTRAL BUSINESS DISTRICT (CBD) Supply & Vacancy Trend The total transaction volume recorded in the CBD during Q3 2010 was around 0.48 million sq ft. This was mainly due to the movement of organizations towards the Peripheral Business District and availability of vacant stock in the CBD. There was an addition of 0.16 million sq ft to the stock which currently stands at 6.2 million sq ft. Approximately 0.45 million sq ft of commercial office space is under construction in this micromarket, most of which is expected to be completed by Q2 2011. The under construction buildings are distributed across 4 buildings ranging between 30,000 and 250,000 sq ft. Many developers like Nitesh Estates, Raheja Group etc are in the process of developing star rated hotels to help bridge the demand- supply gap for hotel rooms. Limited supply expected to keep upward pressure on rentals Rental & Capital Values 55 60 65 70 75 80 5,500 6,000 6,500 7,000 7,500 8,000 Q2 2009 Q3 2009 Q4 2009 Q1 2010 CapitalValue(INR/sq.ft) RentalValue(INR/sq.ft/month) Q2 2010 2,500 3,000 3,500 0.0% 0.5% Q2 2009 Q3 2009 Q4 2009 Q1 2010 Supply & Vacancy Trend Stock(’000sq.ft) VacancyRate 4,000 Q2 2010 Rental & Capital Values There was no change in the rental and capital values in the CBD over Q2 2010 values. This was mainly due to balance in the absorption and supply of stock during Q3 2010. The rentals are expected to rise during the next quarter as the number of enquires for large grade 'A' commercial office space from large multinationals are increasing and a substantial amount of leasing activity is taking place in this micro market. Source: BNP Paribas Real Estate, India Q3 2009 5,651 1.6% Q2 2009 5,651 1.6% Stock ('000 sq ft) Vacancy Supply & Vacancy Trend for the past 6 Quarters Q4 2009 5,933 2.7% Source: BNP Paribas Real Estate, India Q3 2009 70 7,200 Q2 2009 70 7,200 Rental Values (INR / sq. ft / month) Capital Values (INR / sq. ft) Rental & Capital Values over the Past 6 Quarters Q4 2009 73 7,508 Major areas that constitute CBD include:- • MG Road • Residency Road • Richmond Road • Cunningham Road 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4,500 5,000 5,500 6,000 6,500 CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 The average headline rentals & capital values for the last 6 quarters are as follows:- Q2 2010 Q1 2010 75 8,333 Q2 2010 Q1 2010 6,050 3.6% 75 8,333 6,050 3.8% 85 90 8,500 9,000 Stock Vacancy Rate Capital Value Rental Value Q3 2010 Q3 2010 Q3 2010 Q3 2010 6,243 3.6% 75 8,333
  8. 8. 8I I Supply & Vacancy Trend SBD witnessed a completion of 0.12 million sq ft of grade A office space during Q3 2010. The vacancy level in the SBD increased to 4.8% from the previous quarter's 3.7% as many of the occupiers who had occupied large spaces in this micromarket have migrated to the peripheral areas due to competitive rentals and also availability of SEZ and built-to-Suit options. Currently the total stock in SBD is estimated to be around 28.3 million. SBD witnessed leasing of around 2.1 million sq ft in Q3 2010 and most of the occupiers occupied the 2nd generation spaces and SEZ spaces in areas like Outer Ring road and Koramangala. Preference for SEZ as a space option on the rise SECONDARY BUSINESS DISTRICT (SBD) Rental & Capital Values The rental and capital values have remained stable during Q3 2010 as compared to the previous quarter. Every year the rentals have increased by around 22.5%. The rental and capital values are expected to remain stable during the next quarter as there is substantial demand in the market and there also is supply to sustain that demand. Of the total 2.1 million sq ft, 1.7 million sq ft was leased in SEZ and the rest in STPI and other commercial developments. The capital value remained stable at INR 4,450 per sq ft. Source: BNP Paribas Real Estate, India Q3 2009 24,904 7.8% Q2 2009 24,794 7.8% Stock ('000 sq ft) Vacancy Supply & Vacancy Trend for the past 6 Quarters Q4 2009 25,899 7.5% Source: BNP Paribas Real Estate, India Q3 2009 40 4,000 Q2 2009 40 4,000 Rentals (INR / sq. ft / month) Capital Values (INR / sq. ft) Rental & Capital Values over the Past 6 Quarters Q4 2009 45 4,409 Major areas that constitute SBD include:- • Koramangala • Indiranagar and CV Raman Nagar • Old Madras Road • Airport Road • Banerghatta Road • Outer Ring Road • Hebbal • Bellary Road 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 26,000 0% 1% 2% 3% 4% 5% 6% 7% 8% Stock(’000sq.ft) VacancyRate Q2 2009 Q3 2009 Q4 2009 Q1 2010 Supply & Vacancy Trend Q2 2010 9%28,000 Stock Vacancy Rate 3,700 3,900 4,100 4,300 4,500 37 39 41 43 45 RentalValue(INR/sq.ft/month) CapitalValue(INR/sq.ft) Rental & Capital Values Q2 2009 Q3 2009 Q4 2009 Q1 2010 35 47 Q2 2010 49 3,500 4,700 4,900 Capital Value Rental Value CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 The average headline rentals & capital values for the last 6 quarters are as follows:- Q2 2010 Q1 2010 26,419 6.1% Q2 2010 Q1 2010 47 4,250 27,333 3.7% 49 4,450 Q3 2010 Q3 2010 Q3 2010 Q3 2010 27,445 3.7% 49 4,450 51 5,100
  9. 9. 9I I Competitive rentals in comparison to other business districts is translating into large space requirement from occupiers Supply & Vacancy Trend The PBD market witnessed a total leasing of around 0.8 million sq ft during the third quarter of 2010. Medium to large sized spaces were absorbed ranging between 5,000 and 400,000 sq ft. Significant amount of stock is under development in this micro market and is expected to be completed by the end of 2011. The total addition to stock in this region was around 1.1 million sq ft. There was an increase of around 1.4% in the vacancy levels over the previous quarter. This was mainly because of the addition of 1.1 million sq ft to the existing stock. The vacancy levels are expected to subside over the next few quarters as there is significant demand for grade A office space in this micro market and there is no major completion expected till end of 2011. PERIPHERY BUSINESS DISTRICT (PBD) 500 1,000 1,500 2,000 2,500 3,000 3,500 Q2 2009 Q3 2009 Q4 2009 Q1 2010 RentalValue(INR/sq.ft/month) CapitalValue(INR/sq.ft) Rental & Capital Values 5 10 15 20 25 30 35 Q2 2010 0 5% 10% 15% 20% Stock(’000sq.ft) VacancyRate Supply & Vacancy Trend Q2 2009 Q3 2009 Q4 2009 Q1 2010 5,000 Q2 2010 Rental & Capital Values The rental value marginally rose by around 2% from Q2 2010 and is currently stable at INR 28 per sq ft per month. The increase in the rentals can be attributed to the rise in demand for grade 'A' commercial office space in the region. The capital values too increased marginally on account of increasing demand for grade A office space in the region. The capital value currently stands at INR 2,350 per sq ft Source: BNP Paribas Real Estate, India Q3 2009 16,680 16.2% Q2 2009 16,680 16.2% Stock ('000 sq ft) Vacancy Supply & Vacancy Trend for the past 6 Quarters Q4 2009 17,280 17.3% Major areas that constitute PBD include:- • Whitefield • Electronic City • Mysore Road Source: BNP Paribas Real Estate, India Q3 2009 25 2,150 Q2 2009 25 2,200 Rentals (INR / sq. ft / month) Capital Values (INR / sq. ft) Rental & Capital Values over the Past 6 Quarters Q4 2009 26.5 2,328 10,000 25,000 15,000 20,000 0% 25% CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 The average headline rentals & capital values for the last 6 quarters are as follows:- Q2 2010 Q1 2010 17,752 19.5% Q2 2010 Q1 2010 27.5 2,300 19,221 22.14% 27.5 2,300 Capital Value Rental Value Stock Vacancy Rate Q3 2010 Q3 2010 Q3 2010 Q3 2010 20,416 23.50% 28 2,350
  10. 10. 10I I RENTAL VALUES FOR Q3 2010 Rent INR/ sq.ft/ month CBD PBD SBD Micro Market Q on Q Change 75 28 49 0% 2% 0% CAPITAL VALUES FOR Q3 2010 SBD CBD PBD Micro Market Q on Q Change INR / sq.ft 4,450 8,333 2,350 0% 2% 0% KEY PROJECTS CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 New Supply – Year 2010 Property Location Micro Market Total built up area (sq ft) Completion Date (expected) Prestige Shanthiniketan Whitefield PBD 3,100,000 Q4 2010 Bearys Global Research Triangle Whitefield PBD 1,250,000 Q4 2010 Brigade World Trade Centre (North Star) Yeshwantpur SBD 1,100,000 Q4 2010 Bhoruka IT Park Phase II Whitefield PBD 423,000 Q4 2010 GVR Tech Park Whitefield PBD 480,000 Q4 2010 Salrpuria Symphony Hosur Road PBD 160,000 Q4 2010 Source: BNP Paribas Real Estate, India
  11. 11. KEY TRANSACTIONS 11I I CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 Source: BNP Paribas Real Estate, India Q3 2010 Building Occupiers Space (sq.ft) Micro Market Location Divyashree Chambers Vatika 25,000 CBD Langford Road Embassy Icon Sunguard 25,774 CBD Infantry Road Salarpuria Cambridge Mall Autonomy 26,000 CBD Cambridge Layout Brigade South Parade Quintiles 29,800 CBD MG Road Salarpuria Cambridge ACI Global 45,000 CBD Cambridge Layout Vaswani Centropolis Swiss Re 116,162 CBD Langford Road Corniche Al Latheef Inatech Info. Solutions Pvt. Ltd 18,000 CBD Cunningham Road ACR Towers Mott Macdonald 12,403 CBD Residency Road Prestige Nebula Cenduit 17,000 CBD Cubbon Road HM Towers Omnicare Clinical Research India Pvt. Ltd. 19,900 CBD Brigade Road Vrindavan Tech Village Brocade 90,000 SBD Outer Ring Road Vrindavan Tech Village Altisource 100,000 SBD Outer Ring Road IBC Golf View Homes Volvo 100,000 SBD Wind Tunnel Road Vrindavan Tech Village Nokia 126,000 SBD Outer Ring Road Pritech Park Hewlett Packard (hp) 170,000 SBD Outer Ring Road Pritech Park Accenture 200,000 SBD Outer Ring Road Kalyani Magnum Oracle 285,000 SBD Bannerghatta Road Bagmane World Trade Center Emphasis 85,000 SBD Outer Ring Road Mallikarjuna Building Cross Domain 50,000 SBD Yeshwanthpur Pritech Park Nous System 43,000 SBD Outer Ring Road Adarsh Eco Place Infinite 30,000 PBD Whitefield Kalyani Platina APC 35,000 PBD Whitefield Salarpuria GR Tech Park Sapient 65,000 PBD Whitefield Kalyani Platina EFI 70,000 PBD Whitefield Prateek Tech Park HP 71,000 PBD Electronic City Global Axis TCS 400,000 PBD Whitefield First Technology Place JP Morgan Chase 26,340 PBD Whitefield RMZ Centennial O&M 21,380 PBD Whitefield Ozone Manay Tech Park ACS 17,200 PBD Hosur Road
  12. 12. 12I I CITY REPORT BANGALORE OFFICE MARKET - Q3 2010 GLOSSARY Q3: Super Built-up Area (SBUA): Carpet Area: Sq.mt: Mn: New: Recent: SEZ: BFSI: SLR: CRR: FSI: Quarter 3 of the financial year (July - August - September) Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building. Actual usable area, and does not include any common areas, area occupied by walls etc. Square Meter Million Building built within the last 5 years. Building less than 10 years old. Special Economic Zone having special tax exemptions / incentives to corporate occupiers Banking & Financial Services Industry Statutory Liquidity Ratio Cash Reserve Ratio Floor Space Index Absorption: Bare Shell: BPO: BUA: Completed Stock: DU: EPIP: FAR: Grade A Space: Ground Coverage: Hard Option: INR: Pre-lease: Speculative Stock: Stock: Supply: Transaction Volumes: Vacancy: Warm Shell: Q on Q: y-o-y: IT: ITES: Repo Rate: Reverse Repo Rate: SEC A, B, C & D Socio: Sq.ft: Stamp Duty: Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.) Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets Business Process Outsourcing Built up area Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises Dwelling Unit Export Promotion Industrial Park Floor Area Ratio (BUA/ Plot Area) Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities It is the total covered area on ground by the built component and is expressed as a percentage of the plot area Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental Indian National Rupees Space committed for lease before completion of construction The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities. Cumulative Supply New construction in a particular specified period Total number of transaction in a particular specified period Total vacant space in the completed stock Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets Quarter on Quarter year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned Information Technology Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining) Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend. Square Feet Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed. ORR: Headline rent: Average headline rent: Disclaimer: Outer Ring Road Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease. Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges. Major Refurbishment: Renovated: Modern: Old: CCI (Cost of construction index): Demand: For the occupier: New Supply: Completed new supply: Under construction: Planning permission granted: Planning permission submitted: Pre-letting: Underlying rent: Prime rents: Top rent: Second hand premises: Very good condition: Existing state of repair: To be renovated: Supply available within 1 year: Take-up: Vacancy rate: Building which has undergone structural alteration less than 5 years ago, subject to planning permission. . Building which has undergone renovation work not requiring for planning permission less than 5 years ago. High-performance building over 10 years old. Low-performance building over 10 years old. Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs. A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed. Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the existing stocks. These are analysed according to progress. Buildings on which construction work is finished. Buildings on which construction has effectively begun. Prior demolition work is not taken into account. Authorisation to build obtained, generally booked after settlement of third party claims. Planning permission requested, being processed. Transaction by an occupier more than 6 months before the delivery of the building. Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc). Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market. Represents the top headline rent for an office unit. It is not necessarily a prime rent. Premises that have been previously occupied by an occupier for vacant for more than 5 years. High-performance premises of high quality. Low-performance premises that can be rented as they are. Low performance premises that need renovation. All premises and buildings available within 1 year including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases). Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted. Ratio measuring the relationship between the supply immediately available and the existing stock. This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.
  13. 13. www.realestate.bnpparibas.com . ALBANIA* Danos & Associates Blvd. Deshmoret e Kombit Twin Towers - Building 2 11th Floor Tirana Tel.: +355-4-2280488 Fax: +355-4-2280192 AUSTRIA* Dr. Max Huber & Partner Dr. Karl-Lueger-Platz 5 1010 Vienna Tel: +43-1-513 29 39 0 Fax: +43-1-513 29 39 14 BULGARIA* 28, Hristo Botev Boulevard Sofia Tel: +359-2-9532314 Fax: +359-2-9532399 CANADA* Cresa Partners Tel.: +1-617-758 6000 Fax: +1-617-742 0643 CYPRUS* Danos & Associates 35, I. Hatziosif Ave 2027, Nicosia Tel.: +357-22 31 70 31 Fax: +357-22 31 70 11 Danos & Associates GREECE* Danos & Associates 1, Eratosthenous Str. 11635 Athens Tel: +30-210 7 567 567 Fax: +30-210 7 567 267 JAPAN* RISA Partners 5F Akasaka Intercity 1-11-44 Akasaka, Minato-ku 107-0052 Tokyo Tel: +81-3-5573 8011 Fax: +81-3-5573 8012 RUSSIA* Astera 10, b.2 Nikolskaya Str. Moscow, 109012 Tel/Fax: +7-495-925 00 05 NETHERLANDS* Holland Realty Partners J.J. Viottastraat 33, 1071 JP Amsterdam, Tel: +31-20-305 97 20 Fax: +31-20-305 97 21 NORTHERN IRELAND* Whelan Property Consultants 44 Upper Arthur Street Belfast Bt1 4GJ Tel: +44-28-9044 1000 Fax: +44-28-9033 2266 POLAND* Brittain Hadley Europa Warsaw Financial Centre 13th floor Emilii Plater 53 00-113 Warsaw Tel.: +48-22-586 31 00 Fax: +48-22-586 31 16 SERBIA* 6, Vladimira Popovica Street Office B31 11000 Belgrade Tel.: +381-11-2600 603 Fax: +381-11-2601 571 SLOVAKIA* Modesta (Dr. Max Huber & Partner Group) Heydukova 12-14 811 08 Bratislava Tel.: +421-2-3240 8888 Fax: +421-2-3214 4777 SWITZERLAND* Naef Avenue Eugène-Pittard 14-16 Case Postale 30 1211 Geneva 17 Tel.: +41-22 839 39 39 Fax: +41-22 839 38 38 UKRAINE* Astera 2a Konstantinovskaya Street 04071, Kiev Tel: +38-044-501 50 10 Fax: +38-044-501 50 11 USA* Cresa Partners 200 State Street 13th Floor Boston, Massachusetts 02109 Tel.: +1-617-758 6000 Fax: +1-617-742 0643 Falcon Real Estate 570 Lexington Avenue 32nd Floor New York, NY 10022 Tel.: +1-212 271-5445 Fax: +1-212 271-5588 ABU DHABI Al Bateen Area Plot No. 144, W-11 New Al Bateen Municipality Street 32 P.O. Box 2742 Abu Dhabi, UAE Tel.: +971-505 573 055 Fax: +971-44 257 817 BELGIUM Blue Tower Avenue Louise 326 B14 Louizalaan 1050 Brussels Tel: +32-2-646 49 49 Fax: +32-2-646 46 50 DUBAI Emmar Square Building No. 1, 7th Floor P.O. Box 7233 Dubai, UAE Tel: +971-505 573 055 Fax: +971-44 257 817 FRANCE 13 boulevard du Fort de Vaux 75017 Paris Tel: +33-1-55 65 20 04 Fax: +33-1-55 65 20 00 GERMANY Goetheplatz 4 60311 Frankfurt Tel.: +49-69-2 98 99 0 Fax: +49-69-2 92 91 4 IRELAND 40 Fitzwilliam Place Dublin 2 Tel: +353-1-66 11 233 Fax: +353-1-67 89 981 JERSEY 4th Floor, Conway House Conway Street St Helier Jersey Je2 3NT Tel: +44-15 34-62 90 01 Fax: +44-15 34-62 90 11 ITALY Corsa Italia, 15/A 20122 Milan Tel: +39-02-58 33 141 Fax: +39-02-58 33 14 39 LUXEMBOURG Axento Building Avenue J.F. Kennedy 44 1855 Luxembourg Tel.: +352-34 94 84 Fax: +352-34 94 73 ROMANIA Union International Center 11 Ion Campineanu Street Sector 1 Bucharest 010031 Tel: +40-21-312 7000 Fax: +40-21-312 7001 SPAIN María de Molina, 54 28006 Madrid Tel: +34-91-454 96 00 Fax: +34-91-454 97 65 UNITED KINGDOM 90 Chancery Lane London WC2A 1EU Tel: +44-20-7338 4000 Fax: +44-20-7430 2628 *Alliances BANGALORE Level 15, Concorde Block, UB City, Vittal Mallya Road, Bangalore – 560001 Tel: +91 80 4030 0334 Fax: +91 80 4030 0400 DELHI Upper ground floor, Unit No 7, Mercantile House, 15 KG Marg, New Delhi 110001 Tel: +91 11 4959 8800 Fax: +91 11 4959 8818 INDIA For Queries / Comments email at: info.india@bnpparibas.com BNP PARIBAS REAL ESTATE & INFRASTRUCTURE ADVISORY SERVICES PVT. LTD. MUMBAI (HEAD OFFICE) 704, Level 7, MMTC House, C-22, Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Tel: +91 22 6138 8088 Fax: +91 22 6138 8089 Noncontractualdocument-Researchdepartment-Publishedby:RajaKaushal-ManagingDirector,BNPParibasRealEstate&InfrastructureAdvisoryServicesPvt.Ltd. Photocourtesy:VaishnaviGroup-BNPPARIBASREALESTATE:HeadquartersofParentCompany:13,boulevardduFortdeVaux-75017Paris-692012180RCSParis -November2010

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