Amazon cracks deal with DLF Downtown, Jayabheri Properties to acquire eight lakh sq ft space

Amazon and its affiliates have secured two deals in India, acquiring over 8 lakh square feet of space in Gurgaon and Hyderabad for web services, development centre, seller services, and transportation services with DLF Downtown and Jayabheri Properties for a total of 15 years.

The deals were registered earlier this year.

According to a lease registration document shared by Propstack, Amazon will be paying a rent of Rs 45 to Rs 52 per sq. ft. for the Orange Towers property in Hyderabad, while the Downtown property in Gurugram will attract a rent of Rs 110.5 per sq. ft. for the lease period.

The deal marks the biggest transaction being registered for office lease this year, with corporates taking a cautious approach towards expansion and embracing more flexible office spaces.

Amazon has been signing large commercial space deals since 2022, and the recent transaction marks one of the biggest lease transactions signed by Amazon.

Last year, it signed a lease for 4.5 lakh square feet with K Raheja Corp. for its data services business in Thane.

According to Cushman and Wakefield, gross leasing volume across top office markets was recorded at 71 million square feet for CY2022.

The IT-BPM sector continued to dominate leasing activity during the year with a share of 28%, followed by engineering and manufacturing at 15%, said a Cushman & Wakefield study.

However, as the market peers into 2023 amidst a looming global recession, and ongoing layoffs by tech companies, the IT/ITes companies are likely to slow down their space take-up.