The Hindu Business Line : Supply situation of office space may ease soon

The new space commitments were predominantly by the IT and ITES sectors, led by built-to-suit developments. Ready supply of new office space was expected to remain limited over the next two quarters, after which the supply situation was expected to ease.

The prevailing short supply due to sudden spurt in demand, despite the outcry against outsourcing, had exerted some upward pressure in values, particularly in suburban locations, said Cushman & Wakefield, real estate consulting firm.

Among the key leasing transactions in September were by Congnizant Technologies, which acquired 1.7 lakh sq. ft of office space in the Diamond District complex on Airport Road, Elcotel and ANZ IT, which leased an aggregate of 1.8 sq. ft in the Electronic City and off Indiranagar, respectively.Despite the increasing protests against poor road connectivity and quality of roads in the key IT corridors, Bangalore witnessed leading international services and traditional sector companies seeking to set up shops in the city.

JP Morgan Chase, the US banking major is gearing up to set up its second back-office operation in Bangalore. The facility is planned on the same scale as its current facilities in Mumbai, where it has 3,000 to 4,000 people. Caterpillar Inc, infrastructure equipment manufacturing major from the US, plans to set up a subsidiary on e-logistics business here. The proposed facility would provide services to its Indian set up and its worldwide subsidiaries. A global HR services firm, Manpower Services India Pvt Ltd, subsidiary of Manpower Inc, has also chosen Bangalore for its expansion plan.

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