Microsoft scouts for 1.1 million sq ft office space in Bengaluru
BENGALURU: Microsoft is scouting for 1.1 million sq ft office space in Bengaluru to consolidate and expand its business in India as part of chief executive Satya Nadella’s plans to tap into the local market and engineering talent.
The American technology company has already looked at properties in Embassy GolfLinks and North Bengaluru but is yet to firm up a deal, three people aware of the matter said on condition of anonymity.
Currently the company operates out of Embassy GolfLinks Business Park, off intermediate Ring Road. A Microsoft spokesperson did not reply to an email query sent by ETRealty.
“It is difficult to get such big supply in Bengaluru considering there is already a shortage because many companies have already pre-leased office space. Microsoft plans to freeze on the office space by 2018 and it will be a built to suit facility,” a senior executive of a leading property consultancy firm said, requesting not to be identified.
The construction of the mammoth new campus may create as many as 7,000 jobs, one of the three persons cited earlier said. The Redmond-based software firm is considering setting up a new campus in Bengaluru with an investment of $1billion over the next five years. “The new campus is expected to merge many of its India operations and serve as a base for further expansion,” the person said. Microsoft is looking for a suitable property at a time when the expansion drive of large companies is leading to an acute shortage of office space in the bigger metros.
Pre-commitments in 2015 more than doubled from that a year ago to 4.6 million sq ft, according to real estate services firm Cushman & Wakefield. This represents 40% of the total demand for office space during the year.
Many companies have committed themselves to acquiring office space in anticipation of growing requirements and paucity of quality real estate in select markets. Microsoft has offices in 10 locations across India.