Naveen and Sangeeta Khandelwal, both directors of Devesh Functional Foods Pvt Ltd, leased the office space to the company. Bloomberg/Anindito Mukherjee

BENGALURU: A beauty and fashion e-tailer has opened a store in the city. Nykaa E-Retail Pvt Ltd has taken up 27,128 sq ft of office space in Prabhadevi, South Mumbai, as the firm strives to expand its online and offline presence following its public listing last year.

According to records obtained by real estate analytics firm CRE Matrix, the transaction includes a rental payout of around 41.92 crores for a five-year lease term. The lease period begins on April 1, and the rent payment period begins on July 1.

Nykaa has relocated to Cnergy IT Park’s Old Standard Mill Compound, where it already has around 13,000-14,000 square feet of existing office space on a different floor. The company will have access to 27 parking spaces. Naveen and Sangeeta Khandelwal, both directors of Devesh Functional Foods Pvt Ltd, leased the office space to the company.

“…With unicorns such as Nykaa and Byju’s leasing large office spaces, our confidence in the commercial office segment grows with each new deal. We anticipate increased interest in the commercial office segment as the Indian startup storey gains traction. The work-from-office model will return soon, albeit with some modifications such as a hybrid. Grade A projects with handsome occupancy levels may consider raising rents to test demand elasticity in prime locations.”

Think & Learn Pvt Ltd, which manages edtech unicorn Byju’s, has leased 43,550 sq ft from Krishna Developers Pvt Ltd in suburban Mumbai, in one of the city’s largest office space transactions in recent years.

A representative for Nykaa did not respond to an email inquiry.

Sheth Developers Pvt Ltd Cnergy created Cnergy IT Park, an eight-story commercial office complex in Prabhadevi. The agreement was reached at a monthly rental rate of 243 per square foot, which is comparable to the rent paid by other tenants in the building. Seven years ago, Nykaa rented space in the building for around $160 per square foot per month.

Startup unicorns have led commercial office leasing negotiations this year, as they continue to take up more space as a result of major hiring and a multi-city expansion plan.

“…We are confident that co-working and flex space providers will generate a lot of interest from tenants.”

For the last seven years, Nykaa has leased this space in a building where it already has existing space. This obviously demonstrates that the commercial office market is now favouring occupiers, despite some rental pressure. If such transactions gain traction, the pendulum could swing back to landlords in 12-18 months,” Gupta noted.

“This deal demonstrates that the India Retail storey is incredibly intact, and many retailers with growth capital are now gearing up to enhance market share in both the offline and e-commerce marketplaces,” said Karan Singh Sodi, regional managing director at property consultancy JLL India.