30,000 sq ft is rented out for Rs 96 lakh

Tinesh Bhasin / TNN / Jun 10, 2006, 02:16 IST

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US-based financial services company Lehman Brothers has rented office space at the new CJ Towers in Worli for Rs 320 per sq ft.

30,000 sq ft is rented out for Rs 96 lakh

MUMBAI: In one of the biggest deals in the commercial lease market, US-based financial services company Lehman Brothers has rented office space at the new CJ Towers in Worli for Rs 320 per sq ft, which comes to a whopping Rs 96 lakh a month.
According to market sources, the company will move into the 30,000 sq ft office as soon as the interior work is complete.The company declined to comment on the deal.
"CJ Towers is among the best buildings available in the commercial real estate segment. It is the only newly-constructed 'A' grade, sea-facing building available in the city, with modern amenities—including a double basement car park, a large lobby and lavishly done interiors," said head of an international real estate consultancy.
But he was also quick to add, "The deal is on the higher side and this does not benchmark the prices of lease-rental market."

It is believed that Citibank is looking at a deal for around 20,000 sq ft of office space in the same building for close to Rs 310 per sq ft, but the agreement is yet to be signed.
The average rate in the tower is Rs 275 per sq ft for lease rental and Rs 25,000 per sq ft for outright sale. "When the construction started over two years ago, the office space in the building was being sold at around Rs 6,500 per sq ft," said a broker, who was involved in one of the office space transactions in the building...

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"The lease-rental market prices are seeing a steep price rise. With each higher deal reported, the owners are taking these prices as a benchmark and making astounding demands. They even hold on to the properties till they get a satisfactory rent.
As there is a shortage of good office space, international corporates often give into their demands," said another broker at Nariman Point.
Many owners have revised their lease rental rates in premium commercial office space buildings like Maker Tower IV and VI. According to market sources, the current demand in these two buildings is between Rs 320-350 per sq ft for a fully furnished office, and around Rs 270-290 for non-furnished ones, depending on the location and size of the office.
While the average rate in Worli ranges between Rs 200-250 per sq ft for lease-rental, new constructions like Peninsula Corporate Park in Lower Parel are commanding an average rate of Rs 230 per sq ft.

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