Home / Companies / News /  Nykaa takes up more office space in south Mumbai

BENGALURU : Beauty and fashion e-tailer Nykaa E-Retail Pvt Ltd has taken up 27,128 sq ft of office space in south Mumbai's Prabhadevi, as the company looks to ramp up both online and offline presence after its public listing last year.

The transaction entails a rental payout of about 41.92 crore for a five-year lease tenure, according to documents accessed by real estate analytics firm CRE Matrix. The lease period begins from 1 April, while the rent payout commences on 1 July.

Nykaa has taken up the new space at Cnergy IT Park, in Old Standard Mill Compound, where it already has about 13,000-14,000 sq ft of existing office space on a different floor. The company will get access to 27 car parks. The office space has been leased to the company by Naveen and Sangeeta Khandelwal, who are both directors in Devesh Functional Foods Pvt Ltd.

“…With unicorns such as Nykaa and Byju's leasing large office spaces, our confidence in the commercial office segment continues to rise with every new deal. We foresee commercial segment will witness increased interest as Indian startup story picks momentum. The work-from-office model will return soon albeit with some modifications such as hybrid. Grade A projects with handsome occupancy levels might consider increasing the rentals to test demand elasticity in prime locations," said Abhishek Kiran Gupta, CEO and co-founder, CRE Matrix.

Think and Learn Pvt Ltd, which runs edtech unicorn Byju's, recently took up 43,550 sq ft on lease in suburban Mumbai from Krishna Developers Pvt Ltd, in one of the largest office space transactions in the city in recent times.

A Nykaa spokesperson didn’t respond to an email query.

Cnergy IT Park has been developed by Sheth Developers Pvt Ltd Cnergy and is an eight-storey commercial office building in Prabhadevi. The deal was finalized at a monthly rental rate of 243 per sqft, which is close to the rent paid by other tenants in the building. Nykaa had taken up space in the building earlier at about 160 per sq ft per month seven years back.

Commercial office lease deals have been led by startup unicorns this year, as they continue to take up more space on the back of significant hiring and multi-city expansion strategy.

“…We firmly believe co-working and flex spaces operators will attract huge interest from occupiers.

Nykaa has leased this space in building where it already has existing space since the last seven years. This clearly confirms that the commercial office market is favouring the occupiers now with some pressure on rentals. If such deals gain momentum, the pendulum could move towards landlords in 12-18 months," Gupta added.

"This transaction goes on to show that the India Retail story is extremely intact and many retailers with growth capital are now gearing up to expand market share in both offline and e-commerce marketplace," said Karan Singh Sodi, regional managing director at property advisory JLL India.

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