BKC office leased for only 5 months as larger space in Worli is undergoing fit-outs

Global market maker IMC’s India arm IMC India Securities has leased a 5,830 sq ft office space in a commercial building in Mumbai’s Bandra-Kurla Complex (BKC) at a monthly rental of ₹700 per sq ft for five months.

IMC has also taken a nearly 43,000 sq ft office space on the 34th floor of property developer K Raheja’s premium commercial tower, Altimus, in central Mumbai’s Worli locality at ₹350 per sq ft on a 10-year lease.

The deal for the smaller office in BKC’s Maker Maxity-its third office site in the same building was registered on June 5, while the transaction for the larger office space at Altimus was registered on March 13, showed documents accessed through Propstack, a real estate data and analytics company.

Amsterdam-based IMC already has two offices in the same complex in BKC and the additional premise has been leased for a short tenure of five months as its larger office space in Altimus is currently undergoing fit-outs. The BKC deal involves one of the highest lease rentals ever paid for an office space anywhere in India after more than one and a half decade.

Property consultants however, pointed out that this was a one-off deal and the higher rental is due to the short-lease term besides factoring in an already fitted-out office that usually takes months and additional cost.

ET’s email queries to IMC and K. Raheja Corp remained unanswered.

Last year, Fidelity Group’s global investment firm Eight Roads Investment Advisors leased a sea-view front office spread over an entire floor in a commercial tower, Avighna House, in Worli at monthly Work Station lease rentals of ₹561 per sq ft.

Work Station

BKC office

► 5,830 sq ft space

► ₹700 per sq ft monthly rental for 5 months

Worli office

► 43,000 sq ft space

►₹350 per sq ft on 10-year lease

Higher rental due to short-lease term in BKC besides factoring in an already fitted-out office: Experts

lease rentals of ₹561 per sq ft. New infrastructure connectivity

in and around Worli is driving office space deals, attracting businesses seeking enhanced accessibility and modern facilities. For instance, the completion of the Mumbai Trans-Harbour Link and upcoming metro network is making the area more appealing to companies including multinationals looking to open offices in prime locations with better amenities.

In terms of highest rentals, Barclays Bank had leased 15,000 sq ft office space in the CeeJay House commercial tower in Worli in 2007 at 725 per sq ft per month.

IMC Financial Markets is a proprietary trading firm and market maker for various financial instruments listed on exchanges worldwide. Apart from Mumbai, it has offices in Amsterdam, Chicago, Sydney, and Hong Kong.

India’s top seven office property markets have registered over 13.8% on-year growth in gross leasing at over 15.16 million sq ft in the March quarter, marking the second-best performance ever for the quarter, showed a recent report.

This marks the third consecutive quarter where gross leasing has surpassed the 15 million sq ft mark, following the historical high of 20.94 million sq ft in the December quarter and 16.03 million sq ft in the September quarter of 2023.

Source – Economic Times

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