Commercial office space leasing to stagnate at 32-34 msf this fiscal on global slowdown blues

Net leasing of commercial office space in India will stagnate this fiscal at 32-34 million square feet (msf), with global uncertainties brewing caution among key tenant categories, said a report by CRISIL Ratings. It further added that the inherent strengths of the Indian market and increasing shift to return to office should help demand pick up over the medium term, keeping credit profiles of office asset owners stable.

In India, commercial office space is mostly dominated by technology companies, with information technology (IT) and IT-enabled services (ITeS) companies occupying 42-45 per cent of the operational stock.