MUMBAI OFFICE MARCH 2019

MARKETBEATS
1.4 msf 2.0 msf 7.3 msf
N E T A B S O R P T IO N N E W C O MP L E T IO N S U P C O MI N G S U P P L Y
(Q1 2019) (Q1 2019) (2019)

HIGHLIGHTS MARKET INDICATORS OVERALL

12 month
Net absorption gets a push from new completions Q1 2018 Q1 2019 Forecast

With strong leasing activity headlined by select sub-markets, net absorption for Q1 stood Overall Vacancy 17.9% 20.4%
at 1.4 msf; nearly three times higher compared to Q1 2018. Nearly 50% of the net Weighted Average Net Asking CBD
224.2 242.1
Rental (INR/sf/month)
absorption was seen on account of new project completions during the quarter. The
YTD Net Absorption (sf) 362,488 1,405,774
Thane-Belapur Road sub-market continues to remain a strong performer, holding a 38%
share of net absorption, followed by Andheri-Kurla and Central Suburbs sub-markets GRADE A OVERALL RENT
which contributed 31% and 22%, respectively to the quarterly net absorption. & VACANCY RATE
Professional services most active in Q1 2019
140 25%
Professional services occupier category comprising consulting services, advertising and 120 20%
PR agencies held a 31% share of leasing activity during the quarter, followed by the 100
15%
80
Others category with a 24% share which was driven by retail services, hospitality and 10%
60
logistics operators. IT-BPM witnessed lower demand and accounted for a 14% share. 40 5%
Key transactions (greater than 100,000 sf) during the quarter included WPP in Andheri – 20 0%
2013 2014 2015 2016 2017 2018 Q1 2019
Kurla micro market, Netflix in SBD (BKC Prime) and CMA CGM in the Thane – Belapur
Road sub-market. We expect demand to be driven by key supply additions with occupiers Net Asking Rental (INR/sf/month) Vacancy Rate (%)

A Cushman & W akefield
Research Publication
from IT-BPM, Professional services, telecom & media along with flex space operators to GRADE A PRE COMMITMENT AND NET
be most active in future space take-up. ABSORPTION
Select sub-markets to drive overall demand 8,000
Select sub-markets like Thane-Belapur Road, Malad - Goregaon and BKC are expected 6,000

to drive overall demand in future with a supply pipeline of quality assets projected for 4,000
DATA
INTO completion during 2019-2021. With vacancies across most sub-markets likely to see a 2,000
ACTION 0
marginal drop, we expect rents to show some growth in key office corridors like BKC,
2013 2014 2015 2016 2017 2018 YTD 2019
Andheri – Kurla and Powai. Peripheral locations like Thane and Thane – Belapur Road Pre-commitment (000' sf) Net Absorption (000' sf)
www.cushmanwakefield.com where rents have increased earlier, are likely to exhibit stability in the short-term.
 MUMBAI OFFICE
MARKETBEAT MARCH 2019
GRADE A WTD. AVG. RENT*
YTD
Rohan Sharma INVENTORY VACANCY YTD LEASING
PLANNED & UNDER
CONSTRUCTION
YTD NET
Director SUBMARKET (SF) RATE ACTIVITY (SF)
CONSTRUCTION^
COMPLETIONS
ABSORPTION
INR/SF/MO US$/SF/YR EUR/SF/YR
Research Services (SF) (SF)
(SF)
Tel: +91 124 4695555
Rohan.sharma1@cushwake.com CBD 1,962,800 8.3% 13,500 0 0 15,000 242.1 42.0 37.3
SBD 8,674,700 15.2% 197,400 2,082,000 150,000 77,500 259.9 45.1 40.1
Worli 1,469,000 15.6% 9,600 0 0 8,500 222.7 38.6 34.3
Lower Parel 7,711,700 12.7% 34,500 2,325,000 169,200 7300 183.3 31.8 28.3
Andheri-Kurla 13,390,800 20.4% 470,600 1,800,000 366,600 443,900 129.0 22.4 19.9
Powai 6,325,600 12.1% 2,300 560,000 198,000 (19,200) 130.8 22.7 20.2
Malad/Goregaon 10,851,800 19.6% 61,000 2,553,000 0 (66,300) 99.1 17.2 15.3
Central Suburbs 10,503,300 32.6% 291,500 2,089,000 0 315,600 142.4 24.7 22.0
Vashi 1,619,500 7.5% 61,500 0 0 58,400 94.5 16.4 14.6
Thane-Belapur Road 19,515,900 29.1% 356,000 5,794,200 1,144,000 534,900 65.2 11.3 10.1
Thane 7,179,000 11.2% 20,700 2,786,000 0 17,000 70.9 12.3 10.9
TOTAL# 90,081,400 20.4% 1,572,100 19,989,200 2,027,800 1,405,800 120.0 20.8 18.5
The report highlights Grade A details only. Certain indicators are historically corrected by addition / deletion of older / refurbished projects as per grade A classification and accounting for changes in built-up /
leasable area besides adjusting tenant leases to reflect accurate market conditions.
^ Includes planned & under construction projects until 2021
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
*Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
# Total figures contain submarkets not mentioned above
IT-BPM – Information Technology – Business Process Management
Key to submarkets:
CBD – Ballard Estate, Colaba, Churchgate, Fort & Nariman Point; SBD – Bandra-Kurla Complex, Bandra East, Kalina; Lower Parel includes Lower Parel, Parel and Dadar
US$ 1 = INR 69.17 € 1 = INR 77.84
Numbers for the first quarter are based on market information collected until 20 th March 2019
DATA
INTO
ACTION KEY LEASING TRANSACTIONS Q1 2019
PROPERTY SUBMARKET TENANT SF LEASE TYPE
ORB Complex Andheri – Kurla WPP 300,000 Consolidation
A Cushman & W akefield
Research Publication Godrej BKC SBD Netflix 150,000 Fresh Lease
Gigaplex Thane – Belapur Road CMA CGM 100,000 Relocation with Expansion
Cushman & Wakefield (NYSE: CWK) is a leading global real estate One Indiabulls Centre - Tower 2B Lower Parel Bloomberg 64,050 Renewal
services firm that delivers exceptional value for real estate occupiers
and owners. Cushman & Wakefield is among the largest real estate
services firms with approximately 51,000 employees in 400 offices SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION
and 70 countries. In 2018, the firm had revenue of $8.2 billion across
core services of property, facilities and project management, leasing,
capital markets, valuation and other services. To learn more, visit PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE
www.cushmanwakefield.com or follow @CushWake on Twitter.
Mindspace 15- Airoli Thane-Belapur Road NA 1,360,000 Q2 2021
TCS Olympus II Thane TCS 1,300,000 Q4 2019
www.cushmanwakefield.com
Nesco Phase II – Tower 4 Malad / Goregaon NA 1,200,000 Q4 2019

Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.