Amazon Expands Operations with Major Office Lease of Over 1.1 Million SqFt in Bengaluru

Bengaluru: Amazon is set to lease more than 1.1 million sq ft of office space from property developer Sattva Group in North Bengaluru, marking a significant expansion of its operations in the city. The new office tower at Sattva Horizon business park, near the international airport, will feature 11 stories and accommodate over 7,000 employees, with Amazon as the sole occupant.

New Facility Details

Sources close to the deal indicated that Amazon recently signed the term sheet, and the new facility, currently under fit-out, is expected to become operational by mid-next year. The facility will house all of Amazon’s businesses, enhancing its presence in the region.

Previous Major Deals

This latest agreement follows Amazon's acquisition of more than 1.45 million sq ft in Bengaluru, Gurugram, and Hyderabad. These office spaces will support Amazon Web Services, development centers, seller services, and transportation services.

Shift from Hybrid Work Model

A source noted that Amazon had initially slowed its expansion due to the hybrid work model. However, the company is now seeking additional space in Hyderabad and Chennai to support its growing operations. With the return-to-office trend gaining momentum, the demand for office space is expected to rise further.

Market Trends and Growth

As per reports, office space transactions in India's top eight markets reached 16.2 million sq ft in the March quarter, a 43% year-on-year increase. These transactions were driven primarily by India-facing businesses and Global Capability Centres looking to expand their presence. Bengaluru led the market growth with 3.5 million sq ft of transactions.