Smartworks leases 2 lakh sq ft in Bengaluru in 2025

Deal snapshot: Sarjapur Main Road lease

Smartworks Co-working Spaces Limited has leased around 2 lakh sq ft of office space on Bengaluru’s Sarjapura Main Road, according to documents accessed by data analytical firm Propstack. The lease is for a tenure of six years with a reported monthly rent of about ₹1.94 crore. The transaction adds a sizeable block of managed office capacity on a key Bengaluru office corridor. It also underlines how managed office operators are signing long-tenure leases while catering to enterprise demand. The agreement includes a security deposit and a built-in rent escalation clause. People aware of the developments said the entire flexible office space has been leased to Zepto.

Property details and location

The leased area is approximately 200,000 sq ft, spread across the basement, ground floor, four upper floors, and the terrace level of a commercial property. The building is located on Sarjapur Main Road in Ambalipura, Bengaluru. The structure and multi-level layout indicate a large-format managed campus that can accommodate sizeable enterprise requirements. Such layouts typically allow operators to create separate zones for teams, meeting areas, and amenities within one address. In this case, Smartworks has taken the space on lease and is expected to operate it as a fully serviced campus under its managed office model. The documents cited in the provided information identify the owners as BV Dayanand and Bharath Dayanand.

Commercial terms: rent, deposit, and escalation

As per the document details, the space was leased at ₹97 per sq ft per month. That translates to a monthly rental of about ₹1.94 crore for the total leased area. Smartworks has deposited a security amount of ₹9.70 crore as part of the agreement. The lease commenced on April 1, 2025, and is signed for six years. The agreement also provides for a 10% rent increase every two years. These terms set out a long-duration cost structure for the operator and a defined escalation path for the landlord.

Zepto to occupy the entire flexible office space

People aware of the developments said the entire flexible office space created from this lease has been leased to Zepto. That effectively positions the Sarjapur Main Road facility as a single-client or anchor-client campus, at least at the current stage. For managed office operators, such occupancies can support stable utilisation by tying large floor plates to a single enterprise requirement. The information available does not specify seat counts for this particular site. It also does not detail the internal configuration, fit-out schedule, or the date of operationalisation. What is clear from the provided text is the occupancy linkage between Smartworks as the operator and Zepto as the customer for the full space.

Portfolio context: large campuses and Bengaluru focus

Smartworks currently operates six office campuses across India, with each campus spanning over 5 lakh sq ft, according to the provided information. It also has four large campuses in its portfolio, including one in Bengaluru, each exceeding 500,000 sq ft. Its flagship campus at Vaishnavi Tech Park in Bengaluru is around 700,000 sq ft. The company’s operating approach, as described, involves leasing large bare-shell properties and transforming them into Smartworks-branded, fully serviced campuses. The amenity list cited includes cafeterias, gyms, sports zones, crèches, medical centres, and convenience stores. This provides context for why the operator may pursue large, multi-floor assets such as the Sarjapur Main Road property.

Leasing momentum: over a million sq ft in April to June quarter

Two people aware of the development said Smartworks leased over a million sq ft across four cities in the April to June quarter. The city-wise split mentioned was 110,000 sq ft in Kolkata, 200,000 sq ft in Bengaluru, 557,000 sq ft in Mumbai, and 165,000 sq ft in Pune. As of June 30, 2025, the company’s portfolio reached 10.08 million sq ft of leased space, as stated in the provided text. It also reported 0.70 million sq ft under fit-out and 1.07 million sq ft scheduled for handover in Q2 and Q3. Since FY19, Smartworks has added 8.6 million sq ft across major cities, including Pune, Bengaluru, Hyderabad, and Mumbai.

Other recent additions and expansion markers

The provided information also notes that Smartworks has leased a 5.57 lakh sq ft office campus at Intellion Park, Navi Mumbai. Separately, it references an expansion that included adding 1,150 seats at the company’s managed campus at Tata Intellion Park, expanding the client’s presence across Bengaluru, Kolkata, Hyderabad, and Mumbai. Outside India, Smartworks has two centres in Singapore with a total area of 35,036 sq ft. In another expansion update, Smartworks took on lease 5.3 lakh sq ft of office space in Noida and Gurugram, with its NCR portfolio crossing 10 lakh sq ft. The upcoming office space at Golf Course Road in Gurugram is spread over 2.3 lakh sq ft, while 3 lakh sq ft is planned in Noida Sector 62, with the two new centres expected to be operational in June to July.

Key facts table

Market impact: what the numbers signal

At ₹97 per sq ft per month and a reported rent of about ₹1.94 crore, the Sarjapur Main Road lease is a large monthly outflow tied to a single asset and tenure. The 10% step-up every two years defines a predictable escalation schedule over the six-year term. The ₹9.70 crore security deposit is a meaningful upfront commitment, consistent with long-duration commercial leasing. For Bengaluru, the deal adds another sizeable managed office site on a corridor that is also home to Smartworks’ largest centre at Vaishnavi Tech Park, as cited. The fact that the entire space is leased to Zepto, as reported by people aware of the development, highlights how large-format flexible offices can also be used as dedicated enterprise campuses.

Analysis: why this lease matters for managed office operators

The Sarjapur Main Road deal fits into Smartworks’ stated model of taking bare-shell properties and converting them into fully serviced campuses with multiple amenities. It also aligns with the company’s broader leasing momentum during the April to June quarter, when it reportedly leased over a million sq ft across Bengaluru, Mumbai, Pune, and Kolkata. The portfolio disclosures cited, including 10.08 million sq ft of leased space as of June 30, 2025, and additional space under fit-out and scheduled for handover, point to an operator managing a pipeline beyond currently operating areas. Meanwhile, the Noida and Gurugram leases show that expansion is not limited to Bengaluru and Mumbai, but extends to NCR as well. Taken together, the reported transactions show Smartworks using long-term leases to build capacity and then placing that capacity with enterprise customers.

Conclusion

Smartworks’ approximately 2 lakh sq ft lease on Sarjapur Main Road, Bengaluru, starting April 1, 2025, locks in a six-year term at a monthly rent of about ₹1.94 crore with periodic escalation, backed by a ₹9.70 crore security deposit. The space is reported to be fully leased to Zepto. Alongside other disclosed additions across multiple cities and portfolio milestones as of June 30, 2025, the transaction reinforces the company’s focus on large, managed campuses. Future clarity is likely to come from updates on fit-outs, handovers scheduled in Q2 and Q3, and operational ramp-up at newly leased centres mentioned in the provided information.