2012 witnessed many corporates shifting their Headquarters to bigger offices. Experts opine that this was mainly due to the fall of rentals in many of the cities.
As the rentals fall in many of the cities; mainly due to the sluggish realty market, many Corporates have shifted their headquarters to some bigger and better offices. Corporates aim at experiencing better amenities and facilities in their new Headquarters.
In last year, some top Multinationals like Bayer CropScience, FedEx, L’Oreal, Pepsi-Co and Volkswagen moved their offices to bigger and fresher buildings where they will have more space and comfort.
Along with the MNCs, some Indian Corporates like Britannia, Cipla and HDFC also shifted their headquarters to bigger buildings in the last year.
Pharmaceutical major Cipla bought 1.3 lakh sq. ft. of office space and a separate commercial complex tower in Central Mumbai and shifted their HQ. The cost of their new HQ is over Rs.270 Cr.
Following the Indian Pharmaceutical major, German agrochemicals major Bayer CropScience bought a commercial building in Thane and moved their corporate house. They bought the commercial building from Hiranandani Group.
Beverage major PepsiCo is another Corporate which shifted HQ to Golf Course Road Extension Corridor in Gurgaon after hiring 1.5 lakh sq. ft. office spaces here.
What prompted these firms to shift their headquarters which is expected to affect the business of these companies? Headquarter is always seen as a sign of their prestige. Many of the corporates do not wish to shift their corporate houses as it may invite many rumors to spread about them.
According to Mr. Ramesh Nair, Managing Director of Jones Lang LaSalle India (West India) this is mainly due to the fall of office rentals and capital values.
Mr. Nair added that office rentals and capital values have dropped by around 25- 40 % in cities like Bangalore and Mumbai. This might be the main factor that prompted these companies to shift their HQ.
