Nucleus Office Parks of Blackstone Group Increases its Lease Projection For 2022 Due to a Revival in Office Demand

Nucleus Office Parks anticipates converting at least 3 million square feet of demand this year, based on demand and inquiries. The business has leased nearly 5.3 million square feet of space in the previous two quarters, including renewals, across its office parks in important property markets around the nation.

Nucleus Office Parks is a portfolio firm of Blackstone Group Lp that manages the group's commercial assets. It anticipates increased leasing momentum, rental value stabilisation, and growth this year, according to a senior official.

The commercial office sector was reviving last year after the second wave, despite the new hybrid work regime, as many businesses gradually reintroduced staff to offices. However, the continuing third wave has wreaked havoc on both the residential and commercial office sectors, albeit the damage is likely to be less severe this time.

Nucleus Office Parks leased around 5 million square feet of space in 2021, with 4.5 million square feet of space renewed by current tenants. The biggest lease renewal agreement, totaling 2.8 million square feet, was with Cisco Systems' India subsidiary. 

The remaining 500,000 square feet of new leasing occurred mostly in Mumbai.

"As India's economy recovers and base activity levels rebound, confidence gradually improves. Following a lengthy period of stagnation, both the residential and commercial sectors are growing together. Despite the coming third wave, Q3 revenue was 100% greater than Q2 on a quarterly basis. As a result, increasing awareness of contagion will aid in avoiding a market reversal and sudden halt similar to what occurred in 2020. The speed with which further clarification on variation and booster vaccines is implemented in the future will influence the return to office "Quaiser Parvez, CEO of Nucleus Office Parks, said.

Nucleus administers 14 properties totaling 16.9 million square feet of commercial space in India. Last year, the firm and fantasy sports portal Dream Sports agreed to lease approximately 120,000 square feet at One BKC in Mumbai's Bandra-Kurla Complex (BKC). Monthly leasing rates of nearly 300 per square foot would be paid by the online gambling company, bringing the yearly total to 43 crore. Parvez said that it was the most valuable trade.

"We anticipate Mumbai and Bangalore to continue to drive leasing momentum in the future. People have adapted to uncertainty, and as a result, we anticipate a ravenous leasing pace in the first half of 2022, with rents being stable. The second part of this year will bring the year's highs, and rents should begin to rise. We are positive on 2022, when we expect to expand our portfolio "he continued.

Nucleus Office Parks was awarded the British Safety Council's Sword of Honour in December for its commercial office portfolio. One BKC, One International Center, One World Center, and Prima Bay are among the Nucleus-owned complexes in Mumbai, while Kosmo One is located in Chennai.