Latest news with #officeSpace
Irish Times
6 days ago
- Business
- Irish Times
Return to office boosts demand for older London buildings, says British Land
Demand for high-end London offices is starting to 'trickle down' to older buildings because of sky-high rents, fewer people working from home and a shortage of new properties, according to one of the capital's biggest landlords. British Land, which co-owns Broadgate in the City of London, said it had seen a significant uptick in demand for 'good second-hand space in core locations' and a sharp fall in the amount of available space. Since Covid-19, big office tenants have been narrowly focused on the best-quality space in new or freshly refurbished buildings, as they try to lure employees back to in-person work. But Simon Carter, British Land chief executive, said the market was now shifting because new space had become so expensive and there was little availability owing to a lack of construction since the pandemic. READ MORE 'There is definitely the trickle-down effect,' he said. 'The return to the office is much stronger than anyone anticipated. No one [has] built, so the rents are strong.' A year ago, hedge fund and market maker Citadel pre-leased a large office space in British Land's development at 2 Finsbury Avenue for about £100 per sq ft (€118.70), far ahead of the roughly £70 per sq ft rent similar buildings had commanded just a few years earlier. Rents for that top-quality space are now pushing £115-£120 per sq ft, with few buildings still on the market to occupy in the next several years – which is forcing businesses to look at other options. 'That demand is just going elsewhere,' said Mr Carter. Office vacancy levels fell slightly in London's central City and West End districts in the first quarter, according to data provider Costar. Brokers Cushman & Wakefield said the amount of second-hand space sitting on the market in the City had fallen by a fifth since 2023. Most businesses want to stay in core locations close to large train stations, but Mr Carter noted early signs of a move to office districts farther away from key transport links, such as British Land's development at Canada Water. He said he was beginning to see a trend that 'if [companies] want a new building and they are more price sensitive, they are looking at some of the emerging locations: Battersea, Stratford, the new buildings at Canary Wharf or Canada Water'. British Land recently reported an improvement in the value of its properties with its £9.5 billion portfolio of UK offices and retail parks increasing 1.5 per cent in the 12 months to March, according to independent assessments. The portfolio was boosted by higher rents after several years of valuation declines driven by rising interest rates. The company reported its rents rose 3 per cent on a like-for-like basis, with underlying profit – which strips out the impact of changes in property valuations – rising 4 per cent to £279 million. – Copyright The Financial Times Limited 2025
Bloomberg
16-05-2025
- Business
- Bloomberg
Pinterest Is in Talks to Lease Offices at NYC's 11 Madison Tower
Pinterest Inc. is in talks to take office space at Manhattan's 11 Madison Ave. The tech firm is negotiating a deal for roughly 80,000 square feet (7,430 square meters) of office space at the tower owned by SL Green Realty Corp. and PGIM Real Estate, according to people familiar with the matter.
Entrepreneur
16-05-2025
- Business
- Entrepreneur
GCCs Expand Office Space Capacity at an Accelerated Pace in India
GCC are projected to add another 45-50 million sq. ft., accounting for 42 per cent of the total office space demand in India by 2026 You're reading Entrepreneur India, an international franchise of Entrepreneur Media. As companies increasingly perceive India as the 'office to the world,' global capability centers (GCCs) are absorbing office space at an accelerated pace in the country. GCC are projected to add another 45-50 million sq. ft., accounting for 42 per cent of the total office space demand in India by 2026, according to an ANSR report on 'The GCC Effect on India's Real Estate.' Currently, GCCs account for 32 per cent of the total office stock (760 million sq. ft.), up from 24 per cent (577 million sq. ft.) in 2019, reflecting an 8 per cent increase. The maximum surge in demand for space will be in Grade A office spaces reinforcing the country's status as a global GCC hub, the report further stated. Also, over 75 per cent of office leasing in 2024 was in green-certified buildings showcasing the importance of ESG (Environmental, Social, and Governance) compliance. Several GCCs are expanding their office space in India. One among them is Anaptyss, a digitally enabled managed services provider in the global BFSI industry, has announced a significant expansion of its physical footprint in India, with its total operational space set to exceed 100,000 sq. ft. over the next two years. This move aligns with the company's plan to double its India workforce by 2027 by adding over 600 highly skilled professionals across specialized financial services and risk management domains. The company's flagship GCC based in Gurugram, currently spanning about 28,600 sq. ft. will be expanded by 17,000 sq. ft., bringing the total space to over 45,600 sq. ft. — nearly doubling the capacity to over 1,000 seats. The expanded center will augment the delivery for Anaptyss' growing client base in North America and South America, including Canada and Mexico. In Noida, Anaptyss operates a 55,000 sq. ft. facility with a capacity for about 500 professionals. "We continue to see a strong global demand for our digitally enabled, value-driven managed services. The expansion of our India delivery centers, including the ramp-up of the Gurugram GCC, plans for a dedicated campus in Noida, and strategic focus on the cities of Pune, Bengaluru, Kolkata, Hyderabad, and Jaipur will help us serve the demand at scale," stated Anuj Khurana, Co-founder and CEO, Anaptyss. As part of its growth strategy, healthcare GCC Thryve Digital is expanding its Chennai operations with a new 73,000 sq. ft. facility, adding to its 2.5 lakh sq. ft. campus. With a current workforce of 4,400, the company is set to hire 1,000 professionals, reinforcing its commitment to talent development and scaling digital capabilities within the growing GCC ecosystem. Last year, cybersecurity company Arctic Wolf launched its first Indian GCC in Bengaluru. Today, the center is pivotal to driving innovation, product development, and enhancing the company's security operations platform. "Our mission is to end cyber risk for organizations of all sizes, and the research and development work that will happen out of India will be a major enabler in furthering this goal," said Dan Schiappa, chief product and services officer, Arctic Wolf. "By tapping into the highly skilled workforce in Bengaluru, we aim to further accelerate the development of advanced machine learning models and AI-driven cybersecurity detections within our platform, providing our customers with unparalleled protection against evolving cyber threats." According to ANSR, industry-wise, the technology sector accounted for 47 per cent of the total leasing activity, followed by flexible space providers at 19 per cent, banking, financial services & insurance(BFSI) at 16 per cent, and manufacturing companies at 9 per cent. As GCCs continue to expand their workforces, this has led to the emergence of 'micromarkets' which are essentially state-of-the-art technology hubs and IT parks on the outskirts of the main city, offering ergonomically designed workspaces tailored to the needs of the GCCs. The high absorption of office spaces is also a function of the reversal of remote work trend in the GCC sector. "Companies are implementing stricter return-to-office policies, increasing demand for physical workspace. This shift is influencing real estate planning, with GCCs securing larger footprints for growing on-site teams. The focus on collaboration reinforces the value of in-person environments," ANSR said in an earlier report. "Real estate growth driven by GCCs is no longer just about square footage — it's about innovation in how workspaces are designed and used. Unlike traditional offices, GCCs are built as culturally integrated ecosystems that foster collaboration, agility, and enterprise alignment. From flexible, tech-enabled campuses to sustainable, employee-first environments, GCCs are reshaping the future of office space in India. As GCCs expand beyond traditional metros, they are unlocking demand for world-class infrastructure in emerging cities, fuelling sustainable and inclusive urban growth," said Smitha Hemmigae, Managing Director, ANSR.
