ICICI Bank has just signed a lease for a large office space in Navi Mumbai, taking up four floors in a commercial building. This space covers more than 1.3 lakh square feet and ICICI Bank will use it for over nine years.
The bank made four separate agreements with a company named Arihant Superstructures, which will let them use about 32,284 square feet on each floor. They will pay Rs 58 for every square foot monthly, making the total yearly rent about Rs 9 crore. Plus, every three years, the rent will increase by 14%. They also have a lock-in period of 18 months, which means they can’t leave the lease early.
ICICI Bank has already paid a security deposit that is equal to six months’ rent as the lease started on December 15. An interesting part of the lease is that ICICI Bank will enjoy 8 months without paying rent: 4 months during the first year and 4 months in the last year.
This news comes just after HDFC Bank also leased space in another Navi Mumbai building, which is 8 stories tall and covers 4 lakh square feet, for a long-term lease of 10 years.
Navi Mumbai has become a hot spot for businesses because it has great planning, affordable office spaces, and good connections to Mumbai and nearby areas. Many IT and banking companies are growing in places like Vashi, Turbhe, and Airoli.
The demand for office space in the banking and finance sectors is increasing quickly. In 2024, the amount of office leases is expected to be even higher than in 2023 because of better technology, more digital business, a skilled workforce, and changing market needs.
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