Last Updated:November 18, 2024, 18:21 IST

The move is part of a cost-cutting strategy that involves vacating 500,000 square feet of premium office space spread across 18 floors at WTC, owned by Brigade Enterprises Ltd.

The new location’s rent will be less than one-third of the Rs 250 per square foot Amazon currently pays at Malleswaram West’s World Trade Centre (WTC).

Amazon India is preparing to shift its Bengaluru headquarters from the World Trade Centre (WTC) at Malleswaram West to a new office closer to the city’s airport, according to a livemint report. This move is part of a cost-cutting strategy that involves vacating 500,000 square feet of premium office space spread across 18 floors at WTC, owned by Brigade Enterprises Ltd.

The relocation has sparked discussions about the challenges of finding new occupants for the vacated space and its potential ripple effects on nearby residential property rents.

The new office will be housed in a property owned by the Sattva Group, situated roughly 15 minutes from Bengaluru Airport. The new location’s rent will be less than one-third of the Rs 250 per square foot Amazon currently pays at WTC. The transition is slated to begin in April 2025 and conclude by April 2026, according to the report citing sources.

According to a company spokesperson, the upcoming campus will feature modern amenities designed to improve collaboration and enhance the employee experience, although specific details remain under wraps.

However, Brigade Enterprises clarified that Amazon has not yet terminated its lease at WTC.

According to livemint, a company representative noted that while Amazon had the option to expand into a development on Bellary Road, it has continued to honor its current lease agreement. The WTC campus is part of Brigade Gateway, a 40-acre mixed-use development that includes residential apartments, a shopping mall, a hospital, a school, and a hotel. The proximity of residential units has been a significant convenience for many Amazon employees.

The new site, located approximately 20 kilometers from WTC, presents logistical challenges. Travel to the airport-adjacent area could take over 80 minutes during rush hour due to Bengaluru’s notorious traffic congestion. Additionally, the lack of metro connectivity to the new office could make commuting more difficult, although there are plans for future infrastructure enhancements.

This relocation has broader implications for Bengaluru’s real estate market. Brigade Enterprises may face difficulties leasing out the extensive space left vacant by Amazon, potentially dampening demand for nearby residential rentals. On the other hand, the airport corridor could see a surge in commercial activity, as companies like Infosys, Boeing, and Foxconn are already establishing a presence in the area. The full impact of Amazon’s move on employees, real estate dynamics, and the city’s business landscape will unfold in the coming years.