Zomato Leases 84,157 sq ft Office for ₹85 cr in Mumbai: Report
In a significant real estate deal, Zomato, a popular food delivery and restaurant discovery platform, has leased 84,157 square feet of commercial office space in Mumbai for a total rent of ₹85 crore over a five-year period. The news was reported by a leading real estate publication.
According to the report, the space has been rented from Histyle Retail, a well-known real estate developer in the city. The lease agreement has a three-year lock-in period, which means that Zomato will not be able to terminate the agreement before the end of the three-year period.
The rent for the first three years of the lease agreement is ₹1.34 crore per month, which translates to a total of ₹48.12 crore. However, the rent will increase to ₹1.54 crore per month for the remaining two years of the lease, taking the total rent to ₹92.8 crore.
The location of the office space is in Andheri, a popular commercial hub in western Mumbai. Andheri is known for its excellent connectivity and infrastructure, making it an attractive location for businesses and startups.
Zomato’s decision to lease such a large office space is likely a reflection of the company’s growth and expansion plans. The company has been rapidly expanding its operations in recent years, and this lease agreement suggests that it is planning to continue its growth momentum in the future.
The deal is also significant because it highlights the growing demand for office space in Mumbai. The city’s real estate market has been experiencing a surge in demand for commercial properties in recent years, driven by the growth of the startup ecosystem and the increasing adoption of remote work.
Zomato’s lease agreement is also noteworthy because of its terms. The three-year lock-in period is a common clause in many commercial lease agreements, which ensures that the lessee is committed to the property for a minimum period. The increase in rent after the three-year period is also a common practice in the real estate industry, as it allows the lessor to adjust the rent to reflect changes in the market.
In conclusion, Zomato’s lease agreement for 84,157 square feet of office space in Mumbai is a significant development in the city’s real estate market. The deal highlights the growing demand for commercial properties in the city and the increasing adoption of remote work. The terms of the lease agreement, including the three-year lock-in period and the increase in rent, are also noteworthy and reflect the standard practices in the real estate industry.
