Smartworks has leased nearly 2 lakh sq. ft. of office space on Bengaluru’s Sarjapura Main Road at a monthly rent of ₹1.94 crore under a six-year agreement. The deal reflects rising enterprise demand for managed workspaces as India’s flex office market records strong growth, with Bengaluru continuing to lead nationwide absorption.
India’s managed office market continues to gather pace, and Smartworks’ latest leasing transaction in Bengaluru highlights the sector’s growing scale. The flexible workspace operator has leased nearly 2 lakh sq. ft. of commercial office space on Sarjapura Main Road, strengthening its presence in one of Bengaluru’s fastest-growing business corridors.
According to property documents accessed by Propstack, the leased premises span the basement, ground floor, four upper floors, and terrace level of a commercial building located in Ambalipura on Sarjapura Main Road. The property is owned by BV Dayanand and Bharath Dayanand.
The six-year lease commenced on April 1, 2025, with Smartworks committing to a monthly rental of approximately ₹1.94 crore. The agreement values the property at ₹97 per sq. ft. per month and includes a security deposit of ₹9.70 crore. Rental escalation has been fixed at 10% every two years, reflecting long-term confidence in Bengaluru’s commercial leasing market.
Enterprise Demand Drives Large Flex Deals
The new facility underscores how managed workspace operators are increasingly signing large-format leases to cater to enterprise occupiers seeking flexibility, speed, and operational efficiency.
People familiar with the development said the entire office campus has been leased to the quick-commerce company Zepto, although Smartworks had not issued an official confirmation at the time of reporting. If confirmed, the transaction would further reinforce the growing trend of large enterprises choosing managed office environments instead of conventional leasing models.
Smartworks’ business model centres on leasing large commercial buildings and transforming them into enterprise-ready managed campuses. The company oversees workplace design, technology integration, facility management, and day-to-day operations, allowing clients to scale operations without directly managing real estate assets.
This approach has gained significant traction among corporates seeking plug-and-play workplaces that reduce capital expenditure and enable faster expansion.
Multi-City Expansion Signals Strong Market Confidence
The Bengaluru lease comes amid Smartworks’ aggressive nationwide expansion strategy. The company recently expanded its partnership with a Forbes 2000 enterprise by adding 1,150 seats across multiple cities, including Bengaluru, Mumbai, Hyderabad, and Kolkata. Smartworks estimated that the combined rental revenue from these engagements could exceed ₹155 crore.
Earlier transactions also underline the company’s rapid growth trajectory. In late 2025, Smartworks leased around 1.68 lakh sq. ft. in Kolkata for a leading IT services firm and signed one of Mumbai’s largest flexible workspace deals involving more than 8.15 lakh sq. ft. in Vikhroli.
As of Q3 FY26, the company reported a committed rental revenue pipeline exceeding ₹4,700 crore, reflecting the long-tenure and enterprise-focused nature of its operating model.
Flex Offices Continue to Outpace Traditional Leasing
The Smartworks transaction aligns with a broader shift reshaping India’s office market. According to Knight Frank India’s latest Flex Space Occupier Intelligence report, annual flex office transactions across India’s top eight cities grew from 2.2 million sq. ft. in 2017 to 18.6 million sq. ft. in 2025 — an 8.4-fold jump and a 30% CAGR.
The report also noted that flex space penetration rose from 5% to 21% during the same period, significantly outperforming the wider office sector.
Bengaluru continues to dominate this landscape, recording 5.3 million sq. ft. of flex absorption in 2025. With enterprise occupiers increasingly prioritising agility, workplace experience, and scalable infrastructure, managed office operators like Smartworks appear well-positioned to benefit from the next wave of commercial real estate demand.
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