Deloitte Leases 80,000 Sq Ft in Oberoi Commerz III, Mumbai at ₹2.09 Crore per Month

Deloitte Shared Services India LLP has signed a significant lease agreement for approximately 80,849 square feet of office space in Mumbai’s Oberoi Commerz III building, located in Goregaon East. According to a report from Propstack, the company will pay a monthly rent of ₹2.09 crore, equating to ₹258 per square foot. The lease will commence on November 1, 2024, and is for a five-year term. A key feature of the agreement is a 15% rent escalation after 36 months, a common clause in large-scale corporate leasing agreements.

Key Financial Terms

Deloitte has paid a substantial security deposit of ₹18.8 crore, which covers nine months of rent. The high deposit reflects the premium nature of the property, situated in one of Mumbai’s most sought-after business hubs. The office space is spread across two floors in the Commerz III building, a high-end commercial property that forms part of the larger Oberoi Garden City complex.

Growing Footprint in Indian Commercial Real Estate

This lease is not the only major property deal Deloitte has entered into recently. Earlier in 2024, Deloitte Consulting India leased 1.56 lakh square feet of office space in Pune’s International Tech Park, located in the Kharadi area. That deal was for a 10-year lease, further signaling Deloitte’s aggressive expansion in India’s commercial real estate market.

Deloitte’s choice of Oberoi Commerz III as its Mumbai base aligns with the company’s strategy of establishing offices in premium locations. The building is part of the Oberoi Realty International Business Park and is already home to several high-profile tenants. It is a 51-storey development featuring modern facilities and ample amenities, designed to attract multinational corporations and leading financial institutions.

Other Notable Deals in Commerz III

Deloitte’s move is part of a broader trend of major companies leasing large office spaces in the Commerz III business hub. Earlier in the year, IDFC First Bank leased four floors, covering 1.64 lakh square feet in Oberoi Garden City, a neighboring area. The IDFC deal includes parking space for 165 cars and has a starting rent of ₹3.85 crore per month, or ₹233 per square foot. This lease, like Deloitte’s, includes a 15% rent escalation after 36 months and is set for a five-year period, beginning January 15, 2025.

Nielsen Media, along with its subsidiary Whats On India Media Pvt Ltd, also recently leased 1.52 lakh square feet of commercial space in Commerz III. The starting monthly rent for this agreement was ₹3.87 crore, with terms extending over 10 years. The lease includes one floor measuring 39,852 square feet on the 35th floor, with a starting rent of more than ₹1 crore per month.

These large-scale leases indicate the high demand for premium office spaces in Mumbai, particularly in the Goregaon East area, which is becoming a preferred destination for multinational companies looking to establish or expand their presence in India.

Commerz III: A Premium Business Hub

Oberoi Realty’s International Business Park, which houses the Commerz III building, is an expansive commercial complex that has been designed to meet the needs of leading businesses. The park includes three commercial towers: Commerz 1, Commerz 2, and the newly completed Commerz III. Commerz 1 is part of a mixed-use development that also includes a hotel, while Commerz 2 is a 30-storey office tower.

Commerz III, where Deloitte has leased its space, is the latest addition to the business park. This 51-storey building is designed to be a state-of-the-art facility offering both luxury and functionality. It houses several prominent companies, including Morgan Stanley, which occupies 1.6 million square feet on the lower floors of the building. The presence of these global corporations adds to the prestige of the property, making it a highly desirable location for large companies.

Competitive Leasing Market in Mumbai

Mumbai’s commercial real estate market is fiercely competitive, with multinational corporations vying for limited premium office spaces. The Oberoi Garden City complex, including Commerz III, is particularly attractive due to its strategic location and world-class infrastructure.

Besides Oberoi Realty, other developments in the area have also attracted high-profile tenants. For instance, co-working giant WeWork India recently renewed its lease for 1.4 lakh square feet of office space in the neighboring Nesco IT Park, at a monthly rental of ₹2.25 crore. Such deals illustrate the strong demand for commercial properties in Mumbai, despite fluctuations in the global economy.

Deloitte’s lease of Oberoi Commerz III highlights the continued demand for premium office space in Mumbai’s growing business hubs. As more global companies establish offices in these high-end developments, the city’s status as a business and financial hub will only continue to grow.