Amazon Development Centre renews lease for office space in Chennai for three years: Report

Amazon Development Centre India has renewed its lease for around 5,00,000 square feet of office space in Chennai for three years, reported Propstack, a data analytics firm. The tech giant has signed properties with developer Airoli ITP Development for purchase of property in Global Infocity in Perungudi, Chennai at a rent of Rs 59.51 lakh per month for three years.

A person aware of the matter told The Economic Times, "Amazon has been renewing its leases but has not exercised hard options across many locations. All the four renewals totaling 5 lakh square feet were registered earlier this month."

It has also leased a 2.03 sq ft space for a rent of Rs 1.86 crore per month in the same building and through the same developer.

Amazon renews two more spaces in India

The renewal comes after Amazon recently renewed lease for two large spaces. The first one was in Bangalore where the US firm renewed the lease for a 6,50,000 sq ft office space. The firm has also acquired 6,000 sq ft space in Gurgaon and 8,00,000 space in Hyderabad for web services, transportation services, development centres and sell services.

The deal marks a very important transaction for office lease as companies are reluctant to expand and embrace more flexible office spaces due to the rising fear of recession.

Anshul Jain, managing director, India and Southeast Asia at Cushman and Wakefield told The Economic Times, "Despite recent global headwinds that might have been a bit concerning, a preliminary observation suggests India's office markets continue to exhibit good leasing volumes as of the first quarter of 2023."