Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Indospace has leased 1.27 lakh square-feet of warehousing space to Steelcase Asia Pacific Holdings at its industrial park in Pune. The lease, which began on January 29, is for a five-year term at a monthly-rent of INR 46.42 lakh, calculated at INR 36.37 per square-foot. The agreement includes two units, with Steelcase providing a six-month security deposit of INR 2.78 crore. According to the lease terms, the rent will increase by 5% annually. This transaction highlights continued demand for premium warehousing in key industrial hubs like Pune, reinforcing Indospace's position in India's logistics real estate sector.
Indospace, one of India's leading developers of industrial and logistics parks, has finalized a significant leasing agreement with Steelcase Asia Pacific Holdings. The transaction involves 1.27 lakh square feet of warehousing space located within the Indospace Industrial Park in Pune. The lease, which began on January 29, marks a notable addition to the region's growing industrial activity and further strengthens Indospace's presence in key logistics hubs across the country. Advertisement
Steelcase, a global manufacturing company known for its office furniture and workplace solutions, entered into a long-term leasing arrangement spanning five years. The warehousing space, divided into two distinct units, has been leased at a rate of INR 36.37 per square foot per month. Based on this rate, the total monthly rent amounts to INR 46.42 lakh. This strategic move reflects Steelcase's expansion of its operations and supply chain footprint in India, particularly within Maharashtra's industrial corridor.
As part of the leasing arrangement, Steelcase provided a security deposit equivalent to six months rent, which totals approximately INR 2.78 crore. The financial terms outlined in the lease also include an annual rent escalation of 5%, a common industry practice that allows for inflation adjustments and increased asset value over time. This clause ensures a steady income growth trajectory for Indospace throughout the lease duration.
The leased warehousing units are expected to support Steelcase's growing distribution and manufacturing needs across the Asia Pacific region. Pune continues to be a preferred destination for industrial occupiers due to its strategic location, developed infrastructure, and access to key transportation networks, making it ideal for companies with regional logistics requirements.
The deal highlights the resilience and rising demand in India's industrial real estate sector, particularly for Grade A warehousing facilities. As manufacturers and logistics companies continue to scale operations in response to increased domestic and international demand, transactions such as this underscore the robust investment climate and long-term viability of India's logistics infrastructure.
Indospace's ability to attract global clients like Steelcase also speaks to the quality and readiness of its assets, offering modern warehousing solutions that meet international standards. This leasing transaction not only reinforces the company's leadership in the sector but also reflects broader trends of consolidation and growth within India's industrial and logistics real estate market.
Overall, this development is a key indicator of the continued momentum in industrial leasing activity, with premium spaces and institutional-grade developers playing a pivotal role in meeting evolving occupier requirements.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
