Bangalore - 1Q 2010
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0 2 4 6 8 10 12 14 16 18 0 10 20 30 40 50 60 70 80 90 100 2002 2003 2004 2005 2006 2007 2008 1Q2010 2009 Source: Central Statistical Organization, Consensus Economics ECONOMIC INDICATORS Latest Release Average FY 2008 FY 2009 Real GDP Growth Oct - Dec 09 6.0% 9.0% 6.7% Industrial Production Jan-10 16.7% 8.3% 2.4% Prices (CPI) Feb-10 14.9% 6.2% 9.1% Prime Lending Rate Apr -10 11.0%-12.0% 12.5% 11.5%-12.5% SurgingAbsorption Vacancy Rates Stabilised Rentals Outlook Total projected supply for the year is 12.42 million sq.ft; more than the double of the supply delivered in 2009 and the first quarter of 2010 accounted for approximately 1.23 million sq.ft. of it. Outer Ring Road (Sarjapur – Hebbal) micro market continues to witness significant quantum of supply and has contributed for the entire supply during the quarter. Whitefield is another key micro market likely to witness approxima tely 6.3 million sq.ft supply in the coming quarters. Demand* was recorde d at approximately 2.54 million sq.ft, comprising of pre-commitments of 546,000 sq.ft during 1Q 2010. One of the noteworthy trends in the first quarter has been high levels of fresh absorption of approximate ly 1.99 million sq.ft. Absorption has increased by 11% as against the absorption in the first quarter of 2009. The absorption has been the highest in the peripheral micro markets of Outer Ring Road, Whitefield, Electronics city etc., accounting for nearly 57% of the total absorption. Nearly 60% of the total number of transactions register ed in the first quar ter were in excess of 20,000 sq.ft. and the marke t has also witnessed a fe w deals above 100,000 sq.ft. *Demand = Fresh pre commitments + Fresh absorption for the quarter The city's overall vacancy level continued at 15% in the first quarter of 2010. With minimal addition to supply and marginal increase in second generation supply, the vacancy levels have remained constant. Increasing supply in the last couple of years and marginal absorption has resulted in high vacancy of 21% in peripheral location as compared to other micro markets. CBD/ Off CBD micro market witnessed a marginal decrease in vacancy to 13% this quarter and the suburban vacancy levels have remained constant at 5%. There hasn't been significant change in rentals across most micro markets in the first quarter of 2010. CBD/Off CBD micro market with marginal decrease in vacancy, coupled with increased absorption and influx of grade A developments has seen a minor increase in rentals. With absorption trends likely to gain pace in the coming quarters, rental s across select micro markets are likely to witness an upward trend. MARKETBEAT A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION BANGALORE OFFICE REPORT 1Q 2010 This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is accurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wak efield's Knowledge Center at cushmanwake field.com/kn owledge ©2010 Cushman & Wakefield. All rights reserved . For further information, please contact th 4 Floor, Pine Valle y Embassy Golf Links Business Park Intermediate Ring Road, Bangalore - 560 071 Tel: +91 80 4046 5555 www.cushmanwakefield.com GRADE A RENTS AS OF 1Q 2010 Location Average Achievable Rent* % Change from 6 mth Net on GFA) (Local Currency) Outlook INR € US$ 3 1 /sq.ft. /sq.m /sq.ft. mth yr /mth /yr /yr ago ago ( CBD/Off CBD 73 155 19 3% Suburban 48 102 13 2% è Peripheral - ITPL 48 102 13 0% 0% è Peripheral - 1 25 53 7 0% è Peripheral - 2 42 89 11 0% è -12% -17% -11% -7% è Legend Market Rising ì Market Stable è Market Falling î Suburban: CV Raman Nagar, Koramangala, Indiranagar etc Peripheral – 1: Whitefie ld and Electronics City Peripheral – 2: Outer Ring Road (Sarjapur-Hebbal) * Warm Shell includes core facility, high side air c onditioning and 100% power back up SIGNIFICANT NEW LEASE TRANSACTIONS Building Tenant Sq. Ft. Location Pritech Park Cap Gemini 150,000 Outer Ring Road Prestige Dynasty Citrix 120,000 Ulsoor ITPB Societe General 100,000 Whitefield SVR Fortuna Flextronics 90,000 Electronics City SIGNIFICANT PROJECTS UNDER CONSTRUCTION Building Location Office GFA Completion (Sq. Ft.) Date Prestige Shanthineketan Whitefield 3,100,000 2Q 10 Vrindavan Tech Village ORR 900,000 2Q 10 (Sarjapur-Hebbal) Bear ys Global Whitefield-Hoskote 600,000 3Q 10 Research T riangle Road SUPPLY, ABSORPTION AND RENT TRENDS Million sq.ft. INR/sq.ft/month Supply Absorption CBD Rents
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2002 2003 2004 2005 2006 2007 2008 1Q2010
2009
Source: Central Statistical Organization, Consensus Economics
ECONOMIC INDICATORS
Latest Release AverageFY 2008 FY 2009
Real GDP Growth Oct - Dec 09 6.0% 9.0% 6.7%
Industrial Production Jan-10 16.7% 8.3% 2.4%
Prices (CPI) Feb-10 14.9% 6.2% 9.1%
Prime Lending Rate Apr-10 11.0%-12.0% 12.5% 11.5%-12.5%
Surging Absorption
Vacancy Rates
Stabilised Rentals
Outlook
Total projected supply for the year is 12.42 million sq.ft; more than thedouble of the supply delivered in 2009 and the first quarter of 2010accounted for approximately 1.23 million sq.ft. of it. Outer Ring Road(Sarjapur – Hebbal) micro market continues to witness significantquantum of supply and has contributed for the entire supply during thequarter. Whitefield is another key micro market likely to witnessapproximately 6.3 million sq.ft supply in the coming quarters.
Demand* was recorded at approximately 2.54 million sq.ft, comprising of pre-commitments of 546,000 sq.ft during 1Q 2010. One of the
noteworthy trends in the first quarter has been high levels of freshabsorption of approximately 1.99 million sq.ft. Absorption has increasedby 11% as against the absorption in the first quarter of 2009. Theabsorption has been the highest in the peripheral micro markets of Outer Ring Road, Whitefield, Electronics city etc., accounting for nearly57% of the total absorption. Nearly 60% of the total number of transactions registered in the first quarter were in excess of 20,000 sq.ft.and the market has also witnessed a few deals above 100,000 sq.ft.
*Demand = Fresh pre commitments + Fresh absorption for the quarter
The city's overall vacancy level continued at 15% in the first quarter of 2010. With minimal addition to supply and marginal increase in secondgeneration supply, the vacancy levels have remained constant. Increasingsupply in the last couple of years and marginal absorption has resulted inhigh vacancy of 21% in peripheral location as compared to other micromarkets. CBD/ Off CBD micro market witnessed a marginal decrease invacancy to 13% this quarter and the suburban vacancy levels haveremained constant at 5%.
There hasn't been significant change in rentals across most micromarkets in the first quarter of 2010. CBD/Off CBD micro market withmarginal decrease in vacancy, coupled with increased absorption andinflux of grade A developments has seen a minor increase in rentals.
With absorption trends likely to gain pace in the coming quarters, rentalsacross select micro markets are likely to witness an upward trend.
MARKETBEAT
A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
BANGALORE OFFICE REPORT
1Q 2010
This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it isaccurate and complete. Cushman & Wakefield accepts no responsibility if this should prove not to be the case. No warranty orrepresentation, express or implied, is made to the accuracy or completeness of the information contained herein, and same issubmitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any speciallisting conditions imposed by our principals.
For industry-leading intelligence to support your real estate and business decisions, go to Cushman & Wakefield's KnowledgeCenter at cushmanwakefield.com/knowledge
©2010 Cushman & Wakefield. All rights reserved .
For further information, please
contact
th4 Floor, Pine ValleyEmbassy Golf Links Business Park Intermediate Ring Road, Bangalore - 560 071Tel: +91 80 4046 5555www.cushmanwakefield.com
GRADE A RENTS AS OF 1Q 2010
Location Average Achievable Rent* % Change from 6 mthNet on GFA) (Local Currency) Outlook
INR € US$ 3 1/sq.ft. /sq.m /sq.ft. mth yr /mth /yr /yr ago ago
(
CBD/Off CBD 73 155 19 3%
Suburban 48 102 13 2% è
Peripheral - ITPL 48 102 13 0% 0% è
Peripheral - 1 25 53 7 0% è
Peripheral - 2 42 89 11 0% è
-12%
-17%
-11%
-7%
è
Legend
Market RisingìMarket StableèMarket Fallingî
Suburban: CV Raman Nagar, Koramangala, Indiranagar etcPeripheral – 1: Whitefield and Electronics CityPeripheral – 2: Outer Ring Road (Sarjapur-Hebbal)* Warm Shell includes core facility, high side air conditioning and 100% power back up
SIGNIFICANT NEW LEASE TRANSACTIONS
Building Tenant Sq. Ft. Location
Pritech Park Cap Gemini 150,000 Outer Ring Road
Prestige Dynasty Citrix 120,000 Ulsoor
ITPB Societe General 100,000 Whitefield
SVR Fortuna Flextronics 90,000 Electronics City
SIGNIFICANT PROJECTS UNDER CONSTRUCTION
Building Location Office GFA Completion(Sq. Ft.) Date
Prestige Shanthineketan Whitefield 3,100,000 2Q 10
Vrindavan Tech Village ORR 900,000 2Q 10(Sarjapur-Hebbal)
Bearys Global Whitefield-Hoskote 600,000 3Q 10Research Triangle Road
SUPPLY, ABSORPTION AND RENT TRENDS
Million sq.ft. INR/sq.ft/month
Supply Absorption CBD Rents
