Expansion Of IT Companies Leading To Growth In Commercial Real Estate

As a general rule of thumb, companies provide 75-80 sq ft of space per employee. To keep up with the increasing number of employees, IT companies are left with no choice but to expand constantly or relocate to bigger office spaces.

Multinational information technology companies are now on a property hunting spree across major Indian cities as they expand offices and hire more people to run them. The brisk investment flow has come as a blessing for the real estate sector, which has been struggling with falling sales and rising inventories for the last two years, as reported by The Economic Times.

Companies like SAP Labs, CISCO, Accenture and Dell are few IT/ITeS majors to name, who have either acquired or are in the process of acquiring large office spaces to accommodate their anticipated headcount growth. While some companies choose to relocate to bigger spaces, companies like IBM, CISCO and Dell prefer to expand in the same campus. Cisco, which occupies 2.3 million sq ft at Cessna Business Park in Bangalore, has additional 0.5 million sq ft under construction in the same facility. Dell is also setting up a 400,000 sq ft in existing campus in the city. Furthermore, while Adobe has bought 250,000 sq ft in Bangalore's Prestige Tech Platina, Accenture has acquired 400,000 sq ft of office space on the city's Hosur Road.