Indiqube CEO Sees Leasing Demand Driven by GCCs, Indian Corporates
Bengaluru-based Indiqube Spaces, a workplace solutions company, has signed leasing deals with six Tata group entities, including Air India.
Indiqube Spaces Ltd’s co-founder and CEO Rishi Das said the company continues to see demand for office space from multinational players in the form of global capability centres (GCCs) and major Indian corporates, despite recent concerns about demand in the office segment.
Das noted that the IT-services players beyond the top four players have recorded robust growth due to their agility, and have continued to fuel demand for office space, as have startups after a period in the wilderness due to funding issues.
Commercial real estate absorption is quite robust, and the key driver is the global capability centre, where a large part of real estate absorption is today, Das was quoted as saying in a recent Moneycontrol report.
According to Das, the domestic economy is doing well, and Indiqube is seeing very good absorption from various Tata group companies, automotive companies and other major Indian corporations.
The company has signed leasing deals with six Tata group entities, including the group’s super-app Tata Neu, as well as Air India. Besides, Indiqube also plays host to companies such as Mahindra Logistics, Aditya Birla Group’s UltraTech Cement, and the TVS group.
Das noted that while tariff-related concerns continue to cloud the Indian economy, especially textiles and gems and jewellery, office demand is not expected to be affected significantly, with gross leasing in the ongoing calendar year expected to touch a record 90 million square feet.
Das also highlighted that supply of quality office space is expected to be a challenge, with most micro markets running at 94-95% occupancy. He added that tariffs are not playing much havoc because they typically have an impact more on handicrafts, gems, and other such sectors that are not typically the occupiers of office space.
The recently-listed managed office space operator’s Q1 revenue was ₹309 crore, up from ₹242 crore in the corresponding period last year, and earnings before interest, taxes, depreciation, and amortization for the quarter came in at ₹65 crore, nearly double that of the year prior. With entry into two new markets—Kolkata and Mohali—Indiqube’s seat count rose to 1,93,000 at the end of the June quarter.
