Smartworks Leases 4.7 Lakh Sq Ft of Office Space in Gurugram’s DLF Cyber City for ₹94 Crore Annual Rent

Smartworks, flexible workspace provider based in Gurugram, has signed a lease for 4.7 lakh square feet of commercial space in DLF Cyber City, Gurugram. The annual rent for the property is ₹94 crore. The lease agreement covers five floors and has a tenure of six years, with rent payments beginning in March 2025. The transaction was registered on December 3, 2024, and the lease officially commenced on November 1, 2024.

The company agreed to pay ₹165 per square foot as rent and provided a six-month security deposit of ₹47.3 crore. Additionally, the lease terms include a rent escalation of 9% after three years, highlighting the company’s commitment to maintaining its presence in this key business district. Smartworks has also secured access to 794 parking spaces, meeting the infrastructure needs of its clients.

The Gurugram market continues to attract large-scale commercial transactions, driven by sustained demand for flexible office spaces. Smartworks’ decision to expand further in Gurugram reflects this trend. The company has positioned itself to serve enterprises looking for fully managed campuses that cater to evolving work needs. Smartworks is focused on providing tailored solutions, ensuring its properties meet the specific requirements of modern businesses.

The company has been actively expanding its portfolio across major cities in India. In August 2024, it leased 6.13 lakh square feet of office space in Pune. The rent for this property started at ₹4.44 crore per month, with a lease term of five years. This expansion brought Smartworks’ total portfolio in Pune to over 3 million square feet, underscoring the company’s consistent growth in key markets.

As of March 31, 2024, Smartworks operated 41 centers across 13 cities, with a portfolio of 8 million square feet. Its primary markets include Bengaluru, Mumbai Metropolitan Region, Hyderabad, Chennai, and Gurugram. The company’s strategy of targeting high-demand cities has played a significant role in its growth.

In addition to its leasing activities, Smartworks is planning an initial public offering (IPO) to raise funds for further expansion. The company filed its preliminary papers with the Securities and Exchange Board of India (SEBI) in August 2024. The IPO includes fresh equity issuance worth ₹550 crore and an offer-for-sale (OFS) of 67.59 lakh equity shares by existing shareholders. This move is expected to provide the company with the financial resources needed to sustain its expansion plans.

The Gurugram commercial real estate market has seen multiple high-profile transactions recently. In December 2023, Air India signed a lease for 6.2 lakh square feet of space in the E-Innovation Centre in Sector 75, Gurugram. The annual rent for this lease was over ₹90 crore, with a 21-year tenure. Similarly, cricketer Virat Kohli leased 18,430 square feet of office space in Sector 68, Gurugram, for a starting monthly rent of ₹8.85 lakh. These transactions reflect the consistent demand for commercial spaces in Gurugram.

Smartworks’ lease in DLF Cyber City aligns with its focus on scaling operations in high-demand business hubs. With its expanding portfolio and upcoming IPO, the company is well-positioned to address the growing needs of enterprises across India. The steady demand for office spaces in cities like Gurugram indicates a positive outlook for the commercial real estate sector.