CBRE Report Flags ₹66 Billion Opportunity in Chennai’s Aging Office Market

Chennai’s commercial real estate landscape appears ripe for transformation, as a recent study by CBRE South Asia Pvt. Ltd. indicated that around 52–57 million sq. ft. of the city’s total 89 million sq. ft. office inventory holds potential for strategic upgrades.

Retrofitting Opportunities Clustered in Key Corridors

The report, titled ‘From Existing to Exceptional: A Strategic Approach to Retrofitting Indian Office Spaces’, highlighted that the majority of this upgrade potential is located within prominent zones such as OMR Zone 1, OMR Zone 2, and Mount Poonamallee High Road. These micro-markets are believed to offer developers the best opportunity to unlock higher rental yields post-modernisation.

Rental Uplift of Up to 20% Projected

According to the report, successfully upgraded properties in these high-opportunity areas could command rental premiums of up to 20%. However, CBRE cautioned that these premiums may vary based on specific market dynamics within each sub-location.

Investment Scope Pegged Between ₹39–66 Billion

Analysts estimate that this upgrade potential translates into an investment opportunity worth ₹39,000 crore to ₹66,000 crore. By retrofitting aging office stock with modern amenities, developers could position Chennai more competitively on the national real estate map, aligning its offerings with contemporary occupier expectations.

Push Towards Global Standards in Office Space

CBRE’s Chairman & CEO for India, South-East Asia, Middle East & Africa, Anshuman Magazine, noted that Chennai’s role in the ongoing transformation of India’s office sector is becoming increasingly significant. He emphasized that the push for upgradation isn't solely about improving aesthetics or yields—it also represents a move toward sustainability, employee wellness, and tech-enabled spaces that meet global benchmarks.

This strategic retrofitting approach is expected to enhance the city’s overall office market appeal, particularly as businesses look to operate out of modern, efficient, and future-ready workplaces.

Disclaimer: This news article is based on the findings of a report published on the internet and includes analysis and interpretation based on the information available at the time of publication.