Mumbai: Office rentals at Mumbai's central business district are much lower compared to Lower Parel & BKC
Nariman Point, Mumbai's central business district, may never re gain its past glory as the city's premier business location. While this erstwhile power centre is unlikely to attract big multinational companies again -many of whom have already moved ou to other secondary business districts -it will remain an important hub for cer tain industry-specific occupiers such as chartered accountancy and lega firms, according to property consultan cy firm JLL India.
The ongoing exodus of occupiers from Nariman Point has resulted in a drop in lease rentals in this once famous of fice address.
“Currently , office rentals at Nariman Point are equivalent to, or 10% lower than rentals at Lower Parel and 35% lower than rentals at BKC,“ said Ra mesh Nair, COO -Business & Interna tional Director, JLL India.
Right now, grade A buildings in Nariman Point command monthly rentals of . 275300 per sq ft on a carpet area basis.` In comparison, rentals for prime buildings in Lower Parel and Worli range between ` . 350 sq ft. In addition, . 300 sq ft and ` some buildings in BKC fetch a rental of over ` . 450 sq ft on a carpet area basis.
The last few deals that took place at Nariman Point include a 26,000 sq ft lease by law firm led by Shardul Shroff and Indian Hotels leasing 30,000 sq ft. According to property brokers, both these deals were concluded at around 30-40% lower rate than Nariman Point's once peak of around ` . 380-400 per sq ft a month.
It's likely that companies that are currently based in Nariman Point will expand within their current buildings, or into other buildings nearby . Companies currently occupying leased office premises at Cuffe Parade and Churchgate may , in fact, aspire to move to Nari man Point since it is more upmarket and the rental differential it offers will be at its lowest in the next few years.
Interestingly, startup firms looking for smaller offices, may also prefer Nariman Point to other locations, since they are unlikely to get affordable 500 sq ft offices anywhere in the city.
However, all's not lost for Nariman Point -the proximity to Reserve Bank of India, state and central government offices, Mantralaya and Bombay High Court will continue to provide reasons for many to operate out of this address.
The proposed Coastal Road connecting South Mumbai with the north of the city's suburbs will certainly lead to increased traction for this location when implemented, and the deployment of a metro line that ends at Cuffe Parade.
“While the above factors do not exactly translate into a possible return to former glory, it does mean that Nariman Point will not sink into obscurity anytime soon,“ added Nair.
No comments:
Post a Comment