City report - Bangalore Office Market - Q3 2010
-
Upload
bnp-paribas-real-estate -
Category
Documents
-
view
968 -
download
2
description
Transcript of City report - Bangalore Office Market - Q3 2010
CITY REPORTBANGALORE OFFICE MARKET
Q3 2010
BNP Paribas Real EstateAll the buildings blocks
In India our specialists bring you our expertise in Transaction Advisory, Valuation, Consulting.With our international scope and on-the-ground presence, you’ll find the perfect partner that can ensure thesuccess of your real estate project. With BNP Paribas Real Estate, all the pieces come together.
www.realestate.bnpparibas.com
BNP
Parib
as Im
mob
ilier
– 13
bou
leva
rd d
u Fo
rt d
e Va
ux, 7
5017
Par
is –
Fra
nce
SAS
au c
apita
l de
225
205
616
€ -
RCS
Paris
692
012
180
– C
ode
NAF
411
0B
Your contact in India: Bangalore: +91 80 4030 0334 - Mumbai: +91 22 6138 8088 - Delhi: +91 11 4959 [email protected]
BNP Paribas Real Estate and Infrastructure Advisory Services Pvt. Ltd
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
Summary p. 4
Macroeconomic Context p. 5
Bangalore Map p. 6
Central Business District (CBD) p. 7
Secondary Business District (SBD) p. 8
Periphery Business District (PBD) p. 9
Rental Values & Capital Values p. 10
Key Projects p. 10
p. 12Glossary
CONTENTS
Key Transactions p. 11
4I I
SUMMARY
The rental and capital values remained stable during Q3 2010 mainly due to the absorption of second generation spaces and lack of completion of projects in all the three micro markets. The total area leased during the third quarter was around 3.7 million sq ft which is around 3% more than the previous quarter. Given this performance, the first 3 quarters have witnessed transaction volumes of 9.2 million sq ft. Major portions of the transactions took place in the Tech parks and SEZs located in the Outer Ring Road and Whitefield precincts. The vacancy levels in the PBD region remained high due to availability of large SEZ spaces across the city which the developers are providing at competitive rentals in the micro markets.
The vacancy levels are expected to decrease in the next few quarters as the number of enquiries from reputed blue-chip companies are on the rise and the developers are confident of closing large transactions due to the increasing demand and lack of new completions in the different micromarkets.
The rental values in the CBD may see an increase in the coming months as the availability of large grade A commercial office space is less in comparison to the other micro markets and there is substantial enquires from organizations. Some of the developers are experiencing vacancies in their properties as the rentals quoted by them are far above the market levels.
The rental values in the SEZs are expected to rise marginally as there is lack of sufficient supply to match the current demand for SEZ. The rental values are expected to witness a correction during the second half of 2011 when substantial amount of inventory would be added to the current stock.The Bangalore Metro Rail Project is on track as the testing of the railway line from Byappanahalli to MG road section has commenced. Other infrastructure projects such as construction of Flyovers and subways on the Outer Ring road are on full swing and expected to get completed on time. Soil testing for the Elevated Expressway from Hebbal to the New International Airport is underway and the construction is expected to commence in early 2011.
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
5I ICITY REPORTBANGALORE OFFICE MARKET - Q3 2010
Repo Reverse Repo
Repo & Reverse Repo Rate7
6
3
Perc
ent
1
SLR CRR
CRR & SLR30
20
10
5
Perc
ent
0
May
-08
Jul-
08
Sep-
08
Nov
-08
Jan-
09
Mar
-09
May
-09
Jul-
09
Sep-
09
Mar
-08
Nov
-09
Jan-
10
Mar
-10
Gross Domestic Product (GDP)
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
9.30%
8.80%
8.80%
7.90%7.60%
5.30%
5.80%
6.10%
Q32007
Q42007
Q32009
7.90%
Q42009
6.00%
Wholesale Price Index (WPI)
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Apr-
06
Jul-
06
Oct-
06
Jan-
07
Apr-
07
Jul-
07
Oct-
07
Jan-
08
Apr-
08
Jul-
08
Oct-
08
Jan-
09
Apr-
09
Jul-
09
Oct-
09
Jan-
10
Source: Confederation of Indian Industries
Q12010
8.60%
Apr-
10
May
-10
Jul-
10
22-M
ay-0
9
22-J
un-0
9
23-J
ul-0
923
-Aug
-09
23-S
ep-0
9
24-O
ct-0
9
24-N
ov-0
9
25-D
ec-0
9
25-J
an-1
0
25-F
eb-1
0
19-M
ar-1
0
20-A
pr-1
0
Sep-
10
15
25
20-M
ay-1
0
20-J
un-1
0
27-J
ul-1
020
-Aug
-10
16-S
ep-1
0
2
4
5
0
Jul-
10
Q22010
8.80%
2-Ju
l-10
MACROECONOMIC CONTEXTThe Central Bank takes a more sophisticated approach: maintains status quo on CRR & SLRThe Reserve Bank's Review of Monetary Policy on July 27, 2010 expressed concerns over the global outlook. Indicators of economic activity in advanced economies continue to suggest that the recovery is slowing and that the second half of 2010 will post slower growth than the first, although expectations have generally not been revised downwards since end-July.
Under the Liquidity Adjustment Facility (LAF), the RBI has increased the repo rate by 25 basis points from 5.75% to 6.0% and also hiked the reverse repo rate by 50 basis points from 4.5% to 5.0% with immediate effect. This will help maintain financial conditions conducive to sustaining growth, according to the RBI.
India’s GDP during the quarter starting July 2010, rose to 8.8%. Although some of this is attributable to a favourable base effect, the growth rate indicates that the recovery is consolidating and the economy is rapidly converging to its trend rate of growth. Inflation remains the dominant concern in macroeconomic management. The main priority of the Reserve Bank is to curb the ongoing inflation, which peaked at 11% in the month of August. Interest rates have been increased by the banks to contain the inflation, but it could slow down the growth of the Indian economy in the coming months. But even though there has been a rise in the interest rates, there hasn't been much change in the distribution of loans, the Indian customer is hardly affected with the hiked interest rates. Overall, even as the global environment continues to be a cause for caution, the big picture has not worsened significantly since July.
India has replaced the US as the second most important Foreign Directive Investment (FDI) destination for transnational corporations during 2010-2012, according to a survey conducted UNCTAD. In its latest 'World Investment Prospects Survey 2010-2012', the United Nations Conference on Trade and Development said transnational corporations remain buoyant about investment prospects in China, India and Brazil. According to the survey, India is the most important FDI destination next only to China.
DLF Limited 20,285 17% 4,110 2%
Major Real EstateCompanies in
India
Sales (In INR / In million) Profits (In INR / In million)
Q3 2010 Q2 2010Q on Q
Change % Q3 2010 Q2 2010Q on Q
Change %
Unitech 8,286 -22% 1,800 -3%
India Bulls 4,337 25% 1,336 31%Sobha Developers 3,156 35% 343 72%
Peninsula Land 1,483 -17% 500 28%ParsvnathDevelopers 2,528 -23% 318 82%
Pheonix 404 10% 183 21%
Omaxe Limited 2,529 40% 217 69%
MahindraLifespace 679 31% 145 70%
Anantraj 1,034 28% 459 5%
Ackruti City 1,765 -8% 421 31%
Ansal Properties 2,508 27% 369 -38%
5,414 1,745
4,257 589
1,226 638
443
890 247
1,624 550
3,197 228
221
23,690 4,186
3,544 368
1.329 480
6,445 1,740
1,955 579
6I I
BANGALORE MAP
Coce urs ada e RoR Race
Course
RajBhavan
VidhanSoudha
HighCourt
CubbonParkChikpete Rd
Kastur
ba Rd
nroa yh oM R
Rd
Brig
ade
Rd WHITEFIELD
Hoodi
Brigade TechPark
Whi
tefie
ld
Whitefield Rd
Rd
Bela
tur
Rd
Belatur
Kodugodi
Whitefield
Kodugodi RdStation Rd
BhattarahalliRd
Domsandra
Sadarmangal
1 M
ain
Rd
2 Main Rd
Borewell Rd
Vartur Rd
VarturKere
Vartur
Adarsh PalmRetreat
Vartu
r Rd
Channapanhalli
Southern Railway
Vartur Rd
Marattahalli
InnovativeMultiplex
Soul Space
Bellandur
BellandurTank
Salarpuria Softzone
Vimanpura
HAL
LB ShastriNagar
Suranjaindas Rd
Outer Ring Road
DoddaNekkundi
Old Madras Rd
KodihalliVictoria d R
Cantonment
Cubbon Rd
ChinnaswamyCricketStadiumSeshadri Rd
KSRTCBus Terminal
Majestic
Chikpete
Elevated RdVictoria
UrvashiAlbert Victor Rd
K R
Road
Bull Temple Rd
Basavangudi
LalBagh
Lal Bagh Fort Rd
UlsoorLake
Whe
eler
Rd
Munireddypalya
Mattadahalli
Ram
anam
ahar
ishi
Rd
Nagavara
Nag
avar
a M
ain
Rd
Hennu
ru M
ain Rd
Hennuru
Krishnarajapura
RamamurthyNagar
YellarnallappachettyKere
Chikkabanhalli
Old Madras Rd
Whitefield Rd
Devasandra
BhattarahalliAnandapuram
BangaloreHALAirportGolf
Course
Chamarajpet
Sarjapur Rd
Outer Ring Road
HSR Layout
South End Rd
Banashankari
dR arup kanaK
Uttarahalli
li RdlaharattU
Malleshvaram
Chor
d Rd
West ofChord Rd
Pineline Rd
Magadi Rd Chor
d Rd
Link Rd
Magadi Rd
Uni
vers
ity R
d
Hegganahalli
dR illahanaggeH
Bangalore CityRailway Station
Lottegollahalli
Lottegollahalli
Mattikere
Yeshvantpur
Bel Road
HebbalKere
Esteem Mall
NagavaraKere
CoxTown
Hosur RdKana
kpur
a Rd
Chandrapura
Madurai
Begur
Begu
r Rd
Kudlu
Kudlu Rd
NH-7
Bann
ergh
atta
JPNagar
MandivalaTank
MandivalaAgaraKere
adoR erosyM
Chor
d Rd
Magadi Rd
BangalorePalace
Bommanahalli
Marigowda Rd
HosakerehalliKere
dR illU ahattar
Vasantpura Rd
DoddaKalsandra
Kana
kpur
a
da oR attaghcnuhC
Electronic City
Kambipura Rd
Southern Railw
ayBangaloreUniversity
University Rd
TajWestend
JayamahalPalace
Karirobanhalli RdPeenya
YeshvantpurSuburb
Tumkur Road
NH-4
C V Raman Rd
Old Tumkur Rd
Bupasandra Rd
Jalahalli
Kodigehalli RdBELDefence
Colony
Byatarayanapura RachanaHalliKere
Bella
ry R
d
Agrahara
Bella
ry R
d
YelahankaNew Town
Dod Ballapur RdHindupur
Southern Railway
YelahankaKere
BangaloreInternationalAirport
Hyde
raba
d
Harohalli
d RurtpnvahYes
NH-7
ChikkaBommasandra
Rajiv GandhiNagar
KodigehalliKere
Kodigehalli
Southern Railway
Banaswadi idawsanaB
B Channasandra
NH-4
KrishnarajaPuram
Channasandra
BaiyyappanaHalli
R illahanam
maK
d
dR illahalaJ
Chikka Banavar Rd
Southern Railway
Bagalakunte
NH-4
Sarjapur Rd
ChikkaNayakamahalli
Salem
Anek
al
NH-4
NH-4
BangaloreEast
Major Roads
Roads
River / Water Bodies
Park / Green AreaRailway Station CBD
SBD
PBD
Airport
Outer / Ring Road
Inner
1
4
5 6
1
3
8
6
9
13
15
16
4
1
2
3
RajajiNagar
VijayNagar
16
16
16
2
5
7
10
11
1214
17
18
27
8 9
10
113
N
403, The Estate,121, Dickenson Road
Central Business District Secondary Business District Periphery Business District
1. Electronic City2. Mysore Road3. Whitefield
1. Cunningham Road2. Langford Road3. Lavelle Road4. MG Road5. Residency Road6. Richmond Road7. Richmond Town
1. Airport Road 2. Adugodi3. Banerghatta Road 4. Bellary Road5. BTM Layout6. CV Raman Nagar7. Domlur8. Hebbal9. Indiranagar
10. Jaya Nagar11. Jayamahal Rd12. Kammanahalli13. Koramangala 14. Mekhri Circle15. Old Madras Road16. Outer Ring Road 17. R T Nagar18. Shanti Nagar
8. St Marks Road9. Ulsoor10. Vasanth Nagar11. Vitthal Malya
Road
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
7I I
CENTRAL BUSINESS DISTRICT (CBD)
Supply & Vacancy TrendThe total transaction volume recorded in the CBD during Q3 2010 was around 0.48 million sq ft. This was mainly due to the movement of organizations towards the Peripheral Business District and availability of vacant stock in the CBD. There was an addition of 0.16 million sq ft to the stock which currently stands at 6.2 million sq ft. Approximately 0.45 million sq ft of commercial office space is under construction in this micromarket, most of which is expected to be completed by Q2 2011. The under construction buildings are distributed across 4 buildings ranging between 30,000 and 250,000 sq ft.
Many developers like Nitesh Estates, Raheja Group etc are in the process of developing star rated hotels to help bridge the demand-supply gap for hotel rooms.
Limited supply expected to keep upward pressure on rentals
Rental & Capital Values
55
60
65
70
75
80
5,500
6,000
6,500
7,000
7,500
8,000
Q22009
Q32009
Q42009
Q12010
Capital Value (INR/sq.ft)
Rent
al V
alue
(IN
R/sq
.ft/m
onth
)
Q22010
2,500
3,000
3,500
0.0%
0.5%
Q22009
Q32009
Q42009
Q12010
Supply & Vacancy Trend
Stoc
k (’0
00 s
q. ft
) Vacancy Rate4,000
Q22010
Rental & Capital ValuesThere was no change in the rental and capital values in the CBD over Q2 2010 values. This was mainly due to balance in the absorption and supply of stock during Q3 2010. The rentals are expected to rise during the next quarter as the number of enquires for large grade 'A' commercial office space from large multinationals are increasing and a substantial amount of leasing activity is taking place in this micro market.
Source: BNP Paribas Real Estate, India
Q3 2009 5,651 1.6%Q2 2009 5,651 1.6%
Stock ('000 sq ft) Vacancy
Supply & Vacancy Trend for the past 6 Quarters
Q4 2009 5,933 2.7%
Source: BNP Paribas Real Estate, India
Q3 2009 70 7,200Q2 2009 70 7,200
Rental Values (INR / sq. ft / month)
Capital Values(INR / sq. ft)
Rental & Capital Values over the Past 6 Quarters
Q4 2009 73 7,508
Major areas that constitute CBD include:-• MG Road• Residency Road• Richmond Road• Cunningham Road
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4,500
5,000
5,500
6,000
6,500
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
The average headline rentals & capital values for the last 6 quarters are as follows:-
Q2 2010Q1 2010 75 8,333
Q2 2010Q1 2010 6,050 3.6%
75 8,333
6,050 3.8%
85
90
8,500
9,000
Stock Vacancy Rate
Capital Value Rental Value
Q32010
Q32010
Q3 2010
Q3 2010
6,243 3.6%
75 8,333
8I I
Supply & Vacancy TrendSBD witnessed a completion of 0.12 million sq ft of grade A office space during Q3 2010. The vacancy level in the SBD increased to 4.8% from the previous quarter's 3.7% as many of the occupiers who had occupied large spaces in this micromarket have migrated to the peripheral areas due to competitive rentals and also availability of SEZ and built-to-Suit options. Currently the total stock in SBD is estimated to be around 28.3 million. SBD witnessed leasing of around 2.1 million sq ft in Q3 2010 and most of the occupiers occupied the 2nd generation spaces and SEZ spaces in areas like Outer Ring road and Koramangala.
Preference for SEZ as a space option on the rise
SECONDARY BUSINESS DISTRICT (SBD)
Rental & Capital ValuesThe rental and capital values have remained stable during Q3 2010 as compared to the previous quarter. Every year the rentals have increased by around 22.5%. The rental and capital values are expected to remain stable during the next quarter as there is substantial demand in the market and there also is supply to sustain that demand. Of the total 2.1 million sq ft, 1.7 million sq ft was leased in SEZ and the rest in STPI and other commercial developments. The capital value remained stable at INR 4,450 per sq ft.
Source: BNP Paribas Real Estate, India
Q3 2009 24,904 7.8%Q2 2009 24,794 7.8%
Stock ('000 sq ft) Vacancy
Supply & Vacancy Trend for the past 6 Quarters
Q4 2009 25,899 7.5%
Source: BNP Paribas Real Estate, India
Q3 2009 40 4,000Q2 2009 40 4,000
Rentals (INR / sq. ft / month)
Capital Values(INR / sq. ft)
Rental & Capital Values over the Past 6 Quarters
Q4 2009 45 4,409
Major areas that constitute SBD include:-• Koramangala • Indiranagar and CV Raman Nagar • Old Madras Road• Airport Road • Banerghatta Road • Outer Ring Road • Hebbal• Bellary Road
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
0%
1%
2%
3%
4%
5%
6%
7%
8%
Stoc
k (’0
00 s
q.ft
) Vacancy Rate
Q22009
Q32009
Q42009
Q12010
Supply & Vacancy Trend
Q22010
9%28,000
Stock Vacancy Rate
3,7003,9004,1004,3004,500
3739414345
Rent
al V
alue
(IN
R/sq
.ft/m
onth
)
Capital Value (INR/sq.ft)
Rental & Capital Values
Q22009
Q32009
Q42009
Q12010
35
47
Q22010
49
3,500
4,7004,900
Capital Value Rental Value
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
The average headline rentals & capital values for the last 6 quarters are as follows:-
Q2 2010Q1 2010 26,419 6.1%
Q2 2010Q1 2010 47 4,250
27,333 3.7%
49 4,450
Q32010
Q32010
Q3 2010
Q3 2010
27,445 3.7%
49 4,450
51 5,100
9I I
Competitive rentals in comparison to other business districts is translating into large space requirement from occupiers
Supply & Vacancy TrendThe PBD market witnessed a total leasing of around 0.8 million sq ft during the third quarter of 2010. Medium to large sized spaces were absorbed ranging between 5,000 and 400,000 sq ft. Significant amount of stock is under development in this micro market and is expected to be completed by the end of 2011. The total addition to stock in this region was around 1.1 million sq ft.
There was an increase of around 1.4% in the vacancy levels over the previous quarter. This was mainly because of the addition of 1.1 million sq ft to the existing stock. The vacancy levels are expected to subside over the next few quarters as there is significant demand for grade A office space in this micro market and there is no major completion expected till end of 2011.
PERIPHERY BUSINESS DISTRICT (PBD)
500
1,000
1,500
2,000
2,500
3,000
3,500
Q22009
Q32009
Q42009
Q12010
Rent
al V
alue
(IN
R/sq
.ft/m
onth
)
Capital Value (INR/sq.ft)
Rental & Capital Values
5
10
15
20
25
30
35
Q22010
0
5%
10%
15%
20%
Stoc
k (’0
00 s
q.ft
) Vacancy Rate
Supply & Vacancy Trend
Q22009
Q32009
Q42009
Q12010
5,000
Q22010
Rental & Capital ValuesThe rental value marginally rose by around 2% from Q2 2010 and is currently stable at INR 28 per sq ft per month. The increase in the rentals can be attributed to the rise in demand for grade 'A' commercial office space in the region.
The capital values too increased marginally on account of increasing demand for grade A office space in the region. The capital value currently stands at INR 2,350 per sq ft
Source: BNP Paribas Real Estate, India
Q3 2009 16,680 16.2%Q2 2009 16,680 16.2%
Stock ('000 sq ft)
Vacancy
Supply & Vacancy Trend for the past 6 Quarters
Q4 2009 17,280 17.3%
Major areas that constitute PBD include:-• Whitefield• Electronic City• Mysore Road
Source: BNP Paribas Real Estate, India
Q3 2009 25 2,150Q2 2009 25 2,200
Rentals (INR / sq. ft / month)
Capital Values(INR / sq. ft)
Rental & Capital Values over the Past 6 Quarters
Q4 2009 26.5 2,328
10,000
25,000
15,000
20,000
0%
25%
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
The average headline rentals & capital values for the last 6 quarters are as follows:-
Q2 2010Q1 2010 17,752 19.5%
Q2 2010Q1 2010 27.5 2,300
19,221 22.14%
27.5 2,300
Capital Value Rental Value
Stock Vacancy Rate
Q32010
Q32010
Q3 2010
Q3 2010
20,416 23.50%
28 2,350
10I I
RENTAL VALUES FOR Q3 2010
RentINR/ sq.ft/ month
CBD
PBD
SBD
MicroMarket
Q on QChange
75
2849 0%
2%
0%
CAPITAL VALUES FOR Q3 2010
SBDCBD
PBD
MicroMarket
Q on QChangeINR / sq.ft
4,4508,333
2,3500%2%
0%
KEY PROJECTS
CITY REPORTBANGALORE OFFICE MARKET - Q3 2010
New Supply – Year 2010
Property Location Micro Market
Total built up area (sq ft)
Completion Date(expected)
Prestige Shanthiniketan Whitefield PBD 3,100,000 Q4 2010
Bearys Global Research Triangle Whitefield PBD 1,250,000 Q4 2010
Brigade World Trade Centre (North Star) Yeshwantpur SBD 1,100,000 Q4 2010
Bhoruka IT Park Phase II Whitefield PBD 423,000 Q4 2010
GVR Tech Park Whitefield PBD 480,000 Q4 2010
Salrpuria Symphony Hosur Road PBD 160,000 Q4 2010
Source: BNP Paribas Real Estate, India
KEY TRANSACTIONS
11I ICITY REPORTBANGALORE OFFICE MARKET - Q3 2010
Source: BNP Paribas Real Estate, India
Q3 2010
Building Occupiers Space(sq.ft)
Micro Market Location
Divyashree Chambers Vatika 25,000 CBD Langford Road
Embassy Icon Sunguard 25,774 CBD Infantry Road
Salarpuria Cambridge Mall Autonomy 26,000 CBD Cambridge Layout
Brigade South Parade Quintiles 29,800 CBD MG Road
Salarpuria Cambridge ACI Global 45,000 CBD Cambridge Layout
Vaswani Centropolis Swiss Re 116,162 CBD Langford Road
Corniche Al Latheef Inatech Info. Solutions Pvt. Ltd 18,000 CBD Cunningham Road
ACR Towers Mott Macdonald 12,403 CBD Residency Road
Prestige Nebula Cenduit 17,000 CBD Cubbon Road
HM Towers Omnicare Clinical Research India Pvt. Ltd. 19,900 CBD Brigade Road
Vrindavan Tech Village Brocade 90,000 SBD Outer Ring Road
Vrindavan Tech Village Altisource 100,000 SBD Outer Ring Road
IBC Golf View Homes Volvo 100,000 SBD Wind Tunnel Road
Vrindavan Tech Village Nokia 126,000 SBD Outer Ring Road
Pritech Park Hewlett Packard (hp) 170,000 SBD Outer Ring Road
Pritech Park Accenture 200,000 SBD Outer Ring Road
Kalyani Magnum Oracle 285,000 SBD Bannerghatta Road
Bagmane World Trade Center Emphasis 85,000 SBD Outer Ring Road
Mallikarjuna Building Cross Domain 50,000 SBD Yeshwanthpur
Pritech Park Nous System 43,000 SBD Outer Ring Road
Adarsh Eco Place Infinite 30,000 PBD Whitefield
Kalyani Platina APC 35,000 PBD Whitefield
Salarpuria GR Tech Park Sapient 65,000 PBD Whitefield
Kalyani Platina EFI 70,000 PBD Whitefield
Prateek Tech Park HP 71,000 PBD Electronic City
Global Axis TCS 400,000 PBD WhitefieldFirst Technology Place JP Morgan Chase 26,340 PBD Whitefield
RMZ Centennial O&M 21,380 PBD Whitefield
Ozone Manay Tech Park ACS 17,200 PBD Hosur Road
12I ICITY REPORTBANGALORE OFFICE MARKET - Q3 2010
GLOSSARYQ3:
Super Built-up Area (SBUA):
Carpet Area:
Sq.mt:
Mn:
New:
Recent:
SEZ:
BFSI:
SLR:
CRR:
FSI:
Quarter 3 of the financial year (July - August - September)
Built-up area + common area including lifts area, common passages, utilities, terrace etc. & varies from building to building.
Actual usable area, and does not include any common areas, area occupied by walls etc.
Square Meter
Million
Building built within the last 5 years.
Building less than 10 years old.
Special Economic Zone having special tax exemptions / incentives to corporate occupiers
Banking & Financial Services Industry
Statutory Liquidity Ratio
Cash Reserve Ratio
Floor Space Index
Absorption:
Bare Shell:
BPO:
BUA:
Completed Stock:
DU:
EPIP:
FAR:
Grade A Space:
Ground Coverage:
Hard Option:
INR:
Pre-lease:
Speculative Stock:
Stock:
Supply:
Transaction Volumes:
Vacancy:
Warm Shell:
Q on Q:
y-o-y:
IT:
ITES:
Repo Rate:
Reverse Repo Rate:
SEC A, B, C & D Socio:
Sq.ft:
Stamp Duty:
Occupied Stock (n) – Occupied Stock (n-1); Where “n” is the specified period (quarter, year etc.)
Premises consisting of basic structure with lifts, power supply to junction box, water supply line, toilets
Business Process Outsourcing
Built up area
Either the building has received occupancy certificate or the client has moved in and occupied space and started working in a particular premises
Dwelling Unit
Export Promotion Industrial Park
Floor Area Ratio (BUA/ Plot Area)
Office Space with efficiency in excess of 75%, floor plate in excess of 15,000 sq. ft., Car Parking ratio of atleast 1 per 1000 sq. ft., Floor-to-ceiling height in excess of 3.75 m, Power provision of 1.25KVA per 100 sq. ft. with 100% power-backup wherever applicable and professionally managed facilities
It is the total covered area on ground by the built component and is expressed as a percentage of the plot area
Real estate space reserved by the lessee for future occupation within a particular time frame and at a pre-decided rental
Indian National Rupees
Space committed for lease before completion of construction
The stock which can be leased and excludes Built-to-Suit (BTS) and Campus facilities.
Cumulative Supply
New construction in a particular specified period
Total number of transaction in a particular specified period
Total vacant space in the completed stock
Premises consisting of power backup, high side A.C., common area fit outs and fitted out toilets
Quarter on Quarter
year-on-year (All growth figures in this report are y-o-y unless otherwise mentioned
Information Technology
Information Technology Enabled Services (includes various services ranging from call centres, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining)
Rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window
Interest rate that a bank earns for lending money to the Reserve Bank of India in exchange for government securities
Economic Classification; SEC A represents the highest propensity to spend and SEC D represents the lowest propensity to spend.
Square Feet
Form of tax charged on instruments (written documents) requiring a physical stamp (for government legality) to be attached to or impressed.
ORR:
Headline rent:
Average headline rent:
Disclaimer:
Outer Ring Road
Monthly rent per square feet, charged on super built-up area basis, featured on the lease, and expressed excluding fitouts, taxes, deposits, advances, maintenance charges and does not take into account building efficiency (super built up area - carpet area ratio). Further it does not include attached premises such as parking areas, archives, staff canteens, etc. If the rental is progressive, the value applied is the average for the first 3 years or the fixed term of the lease.
Weighted average of rented area. The average featured is a moving average over the quarter, to smooth out the changes, exclusive of all taxes, deposits, advances & maintenance charges.
Major Refurbishment:
Renovated:
Modern:Old:CCI (Cost of construction index):
Demand:
For the occupier:New Supply:
Completed new supply:Under construction:
Planning permission granted:
Planning permission submitted:Pre-letting:
Underlying rent:
Prime rents:
Top rent:
Second hand premises:
Very good condition:Existing state of repair:To be renovated:Supply available within 1 year:
Take-up:
Vacancy rate:
Building which has undergone structural alteration less than 5 years ago, subject to planning permission.
.
Building which has undergone renovation work not requiring for planning permission less than 5 years ago.
High-performance building over 10 years old. Low-performance building over 10 years old.
Index that makes quarterly measurements of construction prices for new house building. It is the price after VAT paid by the owner to construction companies. It excludes land-related prices and costs (site development, special foundations, etc.), fees and financial costs.
A search for premises expressed to BNP Paribas Real Estate. The analysis pertains only to the flow of new demand expressed.
Operation undertaken by an occupier for its own purposes. Any new building and/or heavily refurbished building that adds to the
existing stocks. These are analysed according to progress. Buildings on which construction work is finished.
Buildings on which construction has effectively begun. Prior demolition work is not taken into account.
Authorisation to build obtained, generally booked after settlement of third party claims.
Planning permission requested, being processed.Transaction by an occupier more than 6 months before the delivery of the
building.
Annual rent per square meter expressed free of tax and charges and excluding advantages agreed by the owners (rent incentive building works, etc).
Represents the top headline rent (excluding non significant transactions) for an office unit:- of standard size, of the highest quality and specification, in the best location in each market.
Represents the top headline rent for an office unit. It is not necessarily a prime rent.
Premises that have been previously occupied by an occupier for vacant for more than 5 years.
High-performance premises of high quality. Low-performance premises that can be rented as they are.
Low performance premises that need renovation. All premises and buildings available within 1 year
including the supply available immediately, new supply that has not been pre-let and second hand supply that will be vacated definitively (notable terminated leases).
Rental or sale of a property asset, finalised by the signature of a lease or a bill of sale including turnkey transactions and owner-occupier. The transaction is only taken into account once any existing conditional clauses have been lifted.
Ratio measuring the relationship between the supply immediately available and the existing stock.
This report is released by BNP Paribas Real Estate & Infrastructure Advisory Services and the information in it is dedicated to the exclusive use of its clients. The report and the information contained in it should not be copied or reproduced without prior permission from BNP Paribas Real Estate and Infrastructure Advisory Services. The facts of these reports are believed to be correct at the time of it's release but cannot be guaranteed. Please note the findings, projections, conclusions and recommendations are based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. BNP Paribas Real Estate & Infrastructure Advisory Services cannot be held responsible if, despite it's best efforts, the information contained in the present report turns out to be inaccurate or incomplete.
www.realestate.bnpparibas.com
.
ALBANIA*Danos & AssociatesBlvd. Deshmoret e KombitTwin Towers - Building 211th FloorTiranaTel.: +355-4-2280488Fax: +355-4-2280192
AUSTRIA*Dr. Max Huber & PartnerDr. Karl-Lueger-Platz 51010 ViennaTel: +43-1-513 29 39 0Fax: +43-1-513 29 39 14
BULGARIA*
28, Hristo Botev BoulevardSofiaTel: +359-2-9532314Fax: +359-2-9532399
CANADA*Cresa PartnersTel.: +1-617-758 6000Fax: +1-617-742 0643
CYPRUS*Danos & Associates35, I. Hatziosif Ave2027, NicosiaTel.: +357-22 31 70 31Fax: +357-22 31 70 11
Danos & Associates
GREECE*Danos & Associates1, Eratosthenous Str.11635 AthensTel: +30-210 7 567 567Fax: +30-210 7 567 267
JAPAN*RISA Partners5F Akasaka Intercity 1-11-44Akasaka, Minato-ku107-0052 TokyoTel: +81-3-5573 8011Fax: +81-3-5573 8012
RUSSIA*Astera10, b.2 Nikolskaya Str.Moscow, 109012Tel/Fax: +7-495-925 00 05
NETHERLANDS*Holland Realty PartnersJ.J. Viottastraat 33,1071 JPAmsterdam,Tel: +31-20-305 97 20Fax: +31-20-305 97 21
NORTHERN IRELAND*Whelan Property Consultants44 Upper Arthur StreetBelfast Bt1 4GJTel: +44-28-9044 1000Fax: +44-28-9033 2266
POLAND*Brittain Hadley EuropaWarsaw Financial Centre13th floorEmilii Plater 5300-113 WarsawTel.: +48-22-586 31 00Fax: +48-22-586 31 16
SERBIA*6, Vladimira Popovica StreetOffice B3111000 BelgradeTel.: +381-11-2600 603Fax: +381-11-2601 571
SLOVAKIA*Modesta (Dr. Max Huber &Partner Group)Heydukova 12-14811 08 BratislavaTel.: +421-2-3240 8888Fax: +421-2-3214 4777
SWITZERLAND*NaefAvenue Eugène-Pittard 14-16Case Postale 301211 Geneva 17Tel.: +41-22 839 39 39Fax: +41-22 839 38 38
UKRAINE*Astera2a Konstantinovskaya Street04071, KievTel: +38-044-501 50 10Fax: +38-044-501 50 11
USA*Cresa Partners200 State Street13th FloorBoston, Massachusetts 02109Tel.: +1-617-758 6000Fax: +1-617-742 0643
Falcon Real Estate570 Lexington Avenue32nd FloorNew York, NY 10022Tel.: +1-212 271-5445Fax: +1-212 271-5588
ABU DHABIAl Bateen AreaPlot No. 144, W-11New Al Bateen MunicipalityStreet 32P.O. Box 2742Abu Dhabi, UAETel.: +971-505 573 055Fax: +971-44 257 817
BELGIUMBlue TowerAvenue Louise 326B14 Louizalaan1050 BrusselsTel: +32-2-646 49 49Fax: +32-2-646 46 50
DUBAIEmmar SquareBuilding No. 1, 7th FloorP.O. Box 7233Dubai, UAETel: +971-505 573 055Fax: +971-44 257 817
FRANCE13 boulevard du Fort de Vaux75017 ParisTel: +33-1-55 65 20 04Fax: +33-1-55 65 20 00
GERMANYGoetheplatz 460311 FrankfurtTel.: +49-69-2 98 99 0Fax: +49-69-2 92 91 4
IRELAND40 Fitzwilliam PlaceDublin 2Tel: +353-1-66 11 233Fax: +353-1-67 89 981
JERSEY4th Floor, Conway HouseConway StreetSt HelierJersey Je2 3NTTel: +44-15 34-62 90 01Fax: +44-15 34-62 90 11
ITALYCorsa Italia, 15/A20122 MilanTel: +39-02-58 33 141Fax: +39-02-58 33 14 39
LUXEMBOURGAxento BuildingAvenue J.F. Kennedy 441855 LuxembourgTel.: +352-34 94 84Fax: +352-34 94 73
ROMANIAUnion International Center11 Ion Campineanu StreetSector 1Bucharest 010031Tel: +40-21-312 7000Fax: +40-21-312 7001
SPAINMaría de Molina, 5428006 MadridTel: +34-91-454 96 00Fax: +34-91-454 97 65
UNITED KINGDOM90 Chancery LaneLondon WC2A 1EUTel: +44-20-7338 4000Fax: +44-20-7430 2628
*Alliances
BANGALORELevel 15, Concorde Block,UB City, Vittal Mallya Road,Bangalore – 560001Tel: +91 80 4030 0334Fax: +91 80 4030 0400
DELHIUpper ground floor, Unit No 7,Mercantile House, 15 KG Marg,New Delhi 110001Tel: +91 11 4959 8800Fax: +91 11 4959 8818
INDIA
For Queries / Commentsemail at:[email protected]
BNP PARIBAS REAL ESTATE& INFRASTRUCTURE ADVISORYSERVICES PVT. LTD.
MUMBAI (HEAD OFFICE)704, Level 7, MMTC House, C-22,Bandra Kurla Complex, Bandra (E),Mumbai - 400 051Tel: +91 22 6138 8088Fax: +91 22 6138 8089
Non
con
trac
tual
doc
umen
t - R
esea
rch
depa
rtm
ent -
Pub
lishe
d by
: Ra
ja K
aush
al -
Man
agin
g Di
rect
or, B
NP
Parib
as R
eal E
stat
e &
Infr
astr
uctu
re A
dvis
ory
Serv
ices
Pvt
. Ltd
.Ph
oto
cour
tesy
: Va
ishn
avi G
roup
- B
NP
PARI
BAS
REAL
EST
ATE
: Hea
dqua
rter
s of
Par
ent C
ompa
ny :
13, b
oule
vard
du
Fort
de
Vaux
- 7
5017
Par
is -
692
012
180
RCS
Par
is -
Nov
embe
r 20
10