Exclusive: DLF leases 2.4 lakh square foot office space to Adidas in Gurugram

Real estate major DLF has leased over two lakh square feet of office space to an athletic clothing brand in Downtown Gurgaon at a rent of almost Rs 130 per sq ft per month for nine years, sources told Moneycontrol.

The space has been leased to Adidas, they said, adding the brand has leased 2,40,000 sq ft for nine years. The athletic clothing brand has taken up office space in Downtown 3.

The project DLF Downtown is at a prime location on National Highway 8.

Two towers Downtown 2 and Downtown 3 are complete and fully leased. Occupation certificate has been received for the two towers and fit-outs are currently on, sources said.

Around eight to nine corporate tenants have taken the entire 1.6 mn sq ft in the two towers. Construction work on the third tower, Downtown 4, which is expected to spread across an area of 2 mn sq ft, will start soon and may take around 2.5 years to complete, they said.

DLF refused to comment citing client confidentiality. Adidas is yet to comment on the transaction.

Real estate experts said that while retail has touched pre-COVID-19 levels, office space leasing is also picking up fast. Also, hybrid spaces are here to stay and some companies are still in the process of taking a decision on how much office space they wish to lease on the basis of how the trend of flexible office will pan out in the near future. The picture will be clear in the next quarter or two, experts said.

The net absorption for India’s office space for the January-September period stood at a three-year high of 30.3 million sq ft on the back of strong supply completions with healthy pre-commitments, a report has said.

Quarter-on-quarter (Q-o-Q) as well, the net absorption for the July-September quarter was up by 11 percent at 9.86 million square ft, according to JLL’s Office Market Update-Q3, 2022.

Delhi NCR and Bengaluru are the two biggest office markets by January-September 2022 gross leasing activity, followed by Mumbai, it said.

DLF’s rental assets are primarily under the DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore’s sovereign wealth fund GIC. DLF has nearly 67 per cent stake in the DCCDL, while GIC has the rest. The annuity portfolio is around 35 million square feet.

In October last year, DLF had announced plans to develop 2 million square feet office building in Gurugram as demand for premium workspace from corporates and co-working operators picked up. The company had also said that it would develop two large malls as well as small shopping centres on a lease model.

DLF is India’s largest real estate company in terms of market capitalisation. It has developed more than 153 real estate projects covering 330 million square feet.

The company has 215 million square feet of development potential across the residential and commercial segments.

The DLF Group has an annuity portfolio of over 40 million square feet.

DLF is primarily engaged in the business of development and sale of residential properties (development business), and the development and leasing of commercial and retail properties (annuity business). The firm has been at the forefront of sustainability and wellness and continues to develop Gen-next sustainable workplaces in India.

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