Smartworks Leases Massive 815,000 Sq Ft Office Space in Mumbai's Vikhroli West

Smartworks Coworking Spaces has secured a significant lease of over 815,000 square feet in Mumbai's Vikhroli West. The space is part of a commercial complex developed by the Niranjan Hiranandani Group's Regalia Office Parks, specifically in the Eastbridge building located on LBS Marg. This transaction is notable as one of the largest flexible workspace campus deals recorded. The lease spans 17 floors with a tenure of 74 months and a rental rate of Rs 121.55 per square foot, resulting in a monthly outgo exceeding Rs 9.91 crore. The Eastbridge campus is scheduled to be ready for operations in the fourth quarter of 2026.

Neetish Sarda, MD of Smartworks, stated that this new center will be their largest managed campus globally, aiming to provide enterprises with scale and sustainability. This follows another substantial lease by Smartworks, where they acquired over 557,000 sq ft at Tata Realty's Intellion Park in Navi Mumbai just last month. Niranjan Hiranandani confirmed that the Eastbridge development covers over 2 acres and totals approximately 0.9 million sq ft, with Smartworks occupying floors 2 to 18.

Smartworks currently manages about 12 million sq ft across 14 cities in India and Singapore, serving over 730 clients. The increasing demand for flexible and managed workspaces in India is fueled by large enterprises seeking to optimize real estate costs and improve employee experiences through hybrid work models and scalable, tech-enabled offices. Corporate clients are increasingly preferring 'plug-and-play' solutions, driving the expansion of managed office operators in major business hubs.

Impact This large lease signifies robust demand in the flexible office segment, indicating a positive outlook for coworking operators and commercial real estate developers focused on managed spaces. It highlights the growing trend of enterprises opting for flexible real estate solutions. Rating: 8/10.

Difficult Terms: Flexible workspace: Office spaces that can be easily adapted to different needs, often on a shorter-term or scalable basis, unlike traditional long-term leases. Also known as coworking or managed spaces. Managed campus: A large, dedicated office facility operated and managed by a third-party provider (like Smartworks) on behalf of client companies, offering all necessary amenities and services.