The first phase of the new campus for Flipkart, which recently raised $1 billion in fresh funding, will be delivered by Embassy by early next year as an incubation facility for over 2,400 seats. The first campus at Embassy Tech Village on the Outer Ring Road in Bangalore will be delivered in January 2017 as a plug and play office.

One million sq ft of office space seats between 10,000-12,000 people.

An Embassy official confirmed the deal. Flipkart could not be reached for a comment. Juggy Marwaha, managing director, south India for JLL, which was the advisor to the transaction also confirmed the deal.

"In a process that took over one year of stringent due diligence and shortlisting of options, JLL aligned the rapid business growth of Flipkart alongside the diminishing supply position of Bangalore and yet managed to have a win-win deal for both Embassy and Flipkart," Marwaha said.

As the economy starts to improve, top Indian cities are starting to see an uptick in demand for office space. The deal activity has picked up and there are many large corporations are looking at leasing over 1 million sq ft of space. In one such deal, Deloitte is looking for 1.4 million sq ft of office space in Hyderabad for its BPO business.

While Tata Consultancy Services recently took up just under a million sq ft of space split between Noida and Gurgaon in the National Capital Region. Others looking to lease office space include management consulting firm Accenture, which is scouting for a million sq ft of office space in Bangalore. American financial services firm Wells Fargo is looking to lease 1.2 million sq ft in the city.

Till a few months back, companies in India were still unsure about growth and political uncertainty did not help. Now, with a strong government at the centre and some new policy measures, companies have felt emboldened to go ahead with their plans, which is getting reflected in the demand for office space.

According to property advisory firm CBRE, the September quarter saw strong demand for prime office space with around 8 million sq ft of office space getting absorbed, which is 31% higher compared to a year ago.

"The demand for office space has improved this year, due to the improving economic situation globally and in India. With expected increase in the Indian GDP, the commercial real estate market will witness more activity in the coming months," said Anshuman Magazine, chairman and managing director of CBRE South Asia.

Flipkart will pay in excess of Rs 3,000 crore in rental for the 3 million sq ft campus over the lease period of 10 years. The deal has been signed at a rental of Rs 85 per sq ft.

Source And Courtsey By :- http://articles.economictimes.indiatimes.com/2014-10-18/news/55172961_1_office-space-cbre-south-asia-sq-ft