MARKETBEAT

BANGALORE OFFICE REPORT

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION 1Q 2010

Surging Absorption
Total projected supply for the year is 12.42 million sq.ft; more than the GRADE A RENTS AS OF 1Q 2010
double of the supply delivered in 2009 and the first quarter of 2010
Location Average Achievable Rent* % Change from 6 mth
accounted for approximately 1.23 million sq.ft. of it. Outer Ring Road (Net on GFA) (Local Currency) Outlook
(Sarjapur – Hebbal) micro market continues to witness significant INR € US$ 3 1
quantum of supply and has contributed for the entire supply during the /sq.ft. /sq.m /sq.ft. mth yr
/mth /yr /yr ago ago
quarter. Whitefield is another key micro market likely to witness
approximately 6.3 million sq.ft supply in the coming quarters. CBD/Off CBD 73 155 19 3% -12% è
Suburban 48 102 13 2% -17% è
Demand* was recorded at approximately 2.54 million sq.ft, comprising of Peripheral - ITPL 48 102 13 0% 0% è
pre-commitments of 546,000 sq.ft during 1Q 2010. One of the Peripheral - 1 25 53 7 0% -11% è
noteworthy trends in the first quarter has been high levels of fresh
Peripheral - 2 42 89 11 0% -7% è
absorption of approximately 1.99 million sq.ft. Absorption has increased
by 11% as against the absorption in the first quarter of 2009. The Legend
absorption has been the highest in the peripheral micro markets of Market Rising ìMarket Stable èMarket Falling î
Suburban: CV Raman Nagar, Koramangala, Indiranagar etc
Outer Ring Road, Whitefield, Electronics city etc., accounting for nearly Peripheral – 1: Whitefield and Electronics City
57% of the total absorption. Nearly 60% of the total number of Peripheral – 2: Outer Ring Road (Sarjapur-Hebbal)
transactions registered in the first quarter were in excess of 20,000 sq.ft. * Warm Shell includes core facility, high side air conditioning and 100% power back up
and the market has also witnessed a few deals above 100,000 sq.ft.
SIGNIFICANT NEW LEASE TRANSACTIONS
*Demand = Fresh pre commitments + Fresh absorption for the quarter Building Tenant Sq. Ft. Location
Pritech Park Cap Gemini 150,000 Outer Ring Road
Vacancy Rates
Prestige Dynasty Citrix 120,000 Ulsoor
The city's overall vacancy level continued at 15% in the first quarter of
ITPB Societe General 100,000 Whitefield
2010. With minimal addition to supply and marginal increase in second
generation supply, the vacancy levels have remained constant. Increasing SVR Fortuna Flextronics 90,000 Electronics City
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 SIGNIFICANT PROJECTS UNDER CONSTRUCTION
markets. CBD/ Off CBD micro market witnessed a marginal decrease in Building Location Office GFA Completion
vacancy to 13% this quarter and the suburban vacancy levels have (Sq. Ft.) Date
remained constant at 5%. Prestige Shanthineketan Whitefield 3,100,000 2Q 10
Vrindavan Tech Village ORR 900,000 2Q 10
Stabilised Rentals (Sarjapur-Hebbal)
There hasn't been significant change in rentals across most micro Bearys Global Whitefield-Hoskote 600,000 3Q 10
markets in the first quarter of 2010. CBD/Off CBD micro market with Research Triangle Road
marginal decrease in vacancy, coupled with increased absorption and
influx of grade A developments has seen a minor increase in rentals. SUPPLY, ABSORPTION AND RENT TRENDS
Million sq.ft. INR/sq.ft/month
Outlook 18 100
With absorption trends likely to gain pace in the coming quarters, rentals 16 90
across select micro markets are likely to witness an upward trend. 14 80
70
12
ECONOMIC INDICATORS 60
10
Latest Release Average 50
FY 2008 FY 2009 8
40
6 30
Real GDP Growth Oct - Dec 09 6.0% 9.0% 6.7%
4 20
Industrial Production Jan-10 16.7% 8.3% 2.4% 2 10
Prices (CPI) Feb-10 14.9% 6.2% 9.1% 0 0
Prime Lending Rate Apr-10 11.0%-12.0% 12.5% 11.5%-12.5% 2002 2003 2004 2005 2006 2007 2008 2009 1Q2010

Supply Absorption CBD Rents

Source: Central Statistical Organization, Consensus Economics

For further information, please This report contains information available to the public and has been relied upon by Cushman & Wakefield on the basis that it is
contact 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
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