Office Lease rentals in CBD of Mumbai average Rs.100/- per sqft per month inclusive maintenance

50% offices spaces are vacant in all 5 CBDs of Mumbai.

By Accommodation Times Education and Research Foundation

The second quarter soon ending with lowest ever commercial leaserental recorded in five CBD areas of Mumbai. The average rental deals recorded and registered lease agreement by all 17 zone Registrars show that the Mumbai’s best CBD and commercial zones are setting in Rs.100/- per sqft per month for furnished offices with maintenance.

Andheri E, Marol, Sakinaka, Chakala, Garware and many such locations within the locality is offering long term lease of 5 to 10 years with 3 years lock-in period and just six months deposit of rents. Almost 45% of such offices in the area are vacant and waiting for their takeovers. Majority of them offering between Rs.80 to Rs.120/- per month per sqft. A good building and corporate park offers for Rs.100/-. Near highway and with parking facilities, the rates quoted between Rs.80/- to Rs.100/-. These rates are further negotiable if deposit is high.

Churchgate, Billardpier, Fort, Nariman Point, CST, and Metro Cinema areas have seen a nosedive in commercial lease rentals. Service industry fueling in the occupation but by and large there is a huge vacancy in Nariman Point and Fort area. People have shifted their office in suburbs because of better communication and bad transport. The decentralisation of commercial activities have ruined the entire CBD area of Churchgate and Nariman Point. Only bankers, CAs and Advocates occupy majority of office spaces. Old registered office of listed companies have shifted their base to many other part of the city. The average rate for Churchgate and Nariman Point is Rs.80/- per sq ft. per month. Billard Estate has no deal happening and there is no space. Old colonial companies still anchoring because of heritage buildings and almost free space for them. Directors staying in south Mumbai prefer to commute to such heritage structure in South Mumbai hence still people are seen in day time. Otherwise it can be witnessed as ghost town in Colaba Causway, Billard Estate and many part of Nariman point. There are no takers for such huge office space available for as cheap as Rs.50/- per sq ft per month with maintenance charges.

Lower Parel, the third CBD of Mumbai have become cheapest bid for commercial lease rentals. abundant space of mills. Since almost all manufacturing units have either closed down or shifted to Vasai and Palghar, huge mill space and factories are been occupied by Media houses and studios. Since the travelling is difficult to Lower Parel because fast trains donot stop here, people prefer Dadar instead of Lower Parel. The printing presses, packaging units and service industries have taken over the vacant mills and factories. there is no separate office space constructed. All heavy industrial estate are now converted into office spaces. Godown and assembly units are working on very low lease rentals. The best commercial lease for back office can be grabed for Rs.50/- per sq.ft. The highest commercial lease rentalrecorded in 2010 in some of the corporate parks constructed like Penensula and Ashok Towers. Otherwise the lease rentals for a decent glass facade bulding with full furniture can be occupied for Rs.80/- to Rs.100/-.

Bandra Kurla Complex is loosing its charm among the corporats because of its high lease rentals and lack of proper public transport. In the evening Rickshaws asking for Rs.200/- to drop at Bandra or Kurla. Buses are over crowded and the frequency is also very low. The Trade Centre, Pitti Tower, and many other buildings are offering budget lease rentals. Only Maker city had kept the lease rental highest in the area at the cost of waiting four years vacancy and keeping highest maintenance cost. Otherwise ranging from Rs.150/- to Rs.225/-, BKC gives best possible offers. The fourth CBD of Mumbai is finding it difficult to up keep the vacancy level because of cheaper options available at LBS Road adjcent to MTNL building and newly offerings from Kanakia’s who are developing Kurla Bus Depot. CST Road which is running parallel to BKC where Centrium and other good buildings are offering a half the rates that of BKC is offering. Overlooking BKC, CST road is half empty. The occupancy level is just 50%. Recently Kotak Mahindra Bank had vacated entire building near University at CST Road. G Block where Hindu Cemetery and Uttar Bhartiya Sangh Educational College situated is almost touching MIG colony and Kherwadi where the rates are less than Rs.100/- form where stone throwing distance seen on BKC road.

Lastly Malad West Mind Space, though very small CBD and mostly IT industry was occupying now deserted and occupied by business other than IT and ITES. The buildings were passed as IT parks but since it was constructed on garbage hill and dumping ground, there was some type of gas which had ruined and spoiled machines and computers, as reported in media. The IT industry do not favour the area. Huge stock piled at the beginning of the year and still there are no takers. Almost 60% of space are empty and there are no takers. The lease rentals are ranging between Rs.70 to Rs.110/- per sq.ft. per month with maintenance.