Wells Fargo & Company has leased a whole office building of over 1.3 million sqft of space with developer Divya Sree's Orion project in Hyderabad. This is one of the largest commercial real estate transactions in the country amid the pandemic.

Wells Fargo Firm to Come Up in Hyderabad

In an annual rental of the build-to-suit property, the US financial services Wells Fargo company paid more than Rs 110 crore. The agreement also takes on importance because of the long-term involvement and ongoing arguments on the advent of the business work-from-home model.

Recently the agreement was signed, and Currently, a 22-storey building is being constructed and is expected to be ready for fit-outs in the next 8-9 months. The business will grow with space estimated at 12,000 employees.

Wells Fargo has been operating for more than a decade out of Hyderabad. It operates with its over 1 million sqft office space spread over two towers that accommodate 10,000 employees. The overall period for the lease is nine years, with a lease reset provision with a 15% increase every three years.

The India office property market demonstrated resilience amid the effects of Covid 19 on the business climate and the evolving challenges of the WFH model, as shown by the growing net office.

Office Property Markets 

A majority of multinational companies, including Apple, Wells Fargo, Google, Walmart, and Microsoft are planning to lease wide areas of office spaces in Bengaluru, Hyderabad or either leased.

For example, Standard Chartered Bank has agreed to take up more than 770,000 sq. ft. of office space on a long-term in DLF Chennai project for lease over the next 15 years, with the wholly-owned subsidiary Standard Chartered Global Business Services (GBS).

In Godrej Two, a commercial office building in the suburb of Mumbai's Vikhroli, Amazon India has entered into a leasing agreement to lease almost 260,000 sqft of office space. At the same time, Apple also negotiated a space for its India and foreign operations for Bengaluru, and to open a major retail centre in the city.

By: Shailaja K