Amazon is leasing more than 1.1 million sq ft office space from property developer Sattva Group in North Bengaluru as the US technology giant further expands its operations in the city.
Sattva Group has built a new office tower at Sattva Horizon business park near the international airport. The 11-storey building will be able to accommodate more than 7,000 employees, and Amazon will be the sole occupant.
“Amazon recently signed the term sheet, and the new facility will house all the company’s businesses. The facility is under fit out, and the first phase is expected to be operational by mid next year,” said people aware of the deal.
The latest agreement follows three major property deals by Amazon involving the acquisition of more than 1.45 million sq ft in Bengaluru, Gurugram, and Hyderabad. These office spaces will be utilised for web services, development centres, seller services, and transportation services.
“Amazon initially slowed down its expansion plans due to the prevalence of hybrid work models. However, the company is now seeking additional space in Hyderabad and Chennai to accommodate its growing operations,” said one of the persons cited above.
Several IT/ITES firms including Amazon, shifted towards a hybrid work model, requiring employees to be in the office at least three days a week. However, with return to work gaining ground, demand for office space is expected to rise further.
In the March quarter, office space transactions in the top eight markets in India reached 16.2 million sq ft, an increase of 43% year-on-year, according to Knight Frank. These transactions were primarily driven by India-facing businesses and Global Capability Centres (GCC) looking to step up their presence.
Bengaluru spearheaded the office market growth, securing the top position with 3.5 million sq ft of transactions, comprising 22% of the total office take-up during the quarter, the property consultancy said.
