Whalesbook
WeWork India has finalized a substantial long-term lease for over 204,000 square feet of office space in Pune's Wakad. The agreement spans five floors within Phoenix Millennium Tower 3, with initial terms set at 10 years for the 13th to 15th floors and five years for the 16th and 17th floors.
The monthly rent for this prime space is set at ₹73 per square foot, totaling more than ₹1.49 crore per month. The lease includes a staggered escalation clause: a 12% increase after the first three years, followed by a 13.5% hike every three years thereafter. WeWork India has lodged a security deposit of ₹4.47 crore. The space is expected to be ready for commercial use by November and August of next year.
In a strategic move, WeWork India plans to sublease portions of the 13th, 14th, and 15th floors to three different tenants. These sublease agreements are scheduled to begin in August 2026, with projected rental income of ₹255 per square foot per month. This rate represents a significant markup compared to WeWork's master lease rate.
This transaction highlights ongoing leasing activity in Pune's office market, especially in emerging areas like Wakad. Its location offers proximity to the Mumbai-Pune Expressway and the Hinjewadi IT hub, attracting flexible workspace providers and tech companies. WeWork India's expansion reflects a broader trend of growing demand for managed workspace solutions as companies adopt distributed workforce models and expand into various cities.