Smartworks, a leading managed office space provider, has leased 6.13 lakh square feet of prime office space in Pune’s Balewadi suburb. The lease, secured at the 43 EQ office building, starts at Rs 4.48 crore per month, making it one of the region’s significant commercial real estate deals. The agreement, finalised in April, covers the 4th to 18th floors of the building, with the lease officially commencing on July 1, 2024. According to CRE Matrix, a real estate data analytics firm, the starting rent is Rs 73 per square foot per month, with an annual escalation rate of 4.77 per cent.

Smartworks has paid a security deposit of Rs 13.21 crore for the five-year license term, with license fee payments scheduled to begin on May 1, 2025. This addition expands Smartworks’ Pune portfolio to over 3 million square feet, contributing to its total managed portfolio of 8 million square feet across major Indian cities, including the National Capital Region, Mumbai, Bengaluru, Kolkata, Chennai, and Ahmedabad.

The Balewadi area, strategically located along the Mumbai-Bengaluru highway, has rapidly developed into a hub for technology firms, startups, and global capability centres. It has also become a key retail and dining destination, making it an attractive business location. The 43 EQ property leased by Smartworks is situated near other properties managed by the company and large leases secured by other office space operators in the area, further solidifying Balewadi’s status as a commercial hotspot.

Smartworks announced the lease in May but did not disclose the financial details then. The expansion is crucial as Smartworks prepares for its initial public offering (IPO). The Gurugram-based flexible office operator recently filed preliminary papers with the Securities and Exchange Board of India (SEBI) to raise funds through the IPO. This signalled its ambition to scale further in the competitive coworking and flexible office space industry.

“We are excited to strengthen our presence in Pune, a key market for us, and continue delivering flexible office solutions that cater to the dynamic needs of businesses,” a Smartworks spokesperson said. This expansion in Balewadi enhances Smartworks’ footprint in the region and positions the company well as it gears up for its public offering.
As Smartworks continues to expand its portfolio, it remains a key player in the Indian flexible workspace sector, offering innovative solutions that cater to the evolving needs of modern businesses.