New Delhi: Amazon India is likely to shift its headquarters from World Trade Center (WTC) in Malleswaram, Bengaluru, to a new office near Kempegowda International Airport. With the aim of reducing costs and maintaining cost control, the e-commerce major is shifting out of the WTC.
On the Move
Currently, Amazon occupies around 500,000 square feet spread over 18 floors across the WTC, owned by Brigade Enterprises Ltd. The new office shall be 20 km from the WTC and a short drive from the airport. It will be owned by the Sattva Group and cost Amazon less than one-third its current rent of ₹250 per square foot.
Employee Concerns
It will impact over 5,000 employees working at the WTC. Many are concerned about the longer commute, with traffic from Bengaluru which may add up to more than 80 minutes. The new location lacks metro connectivity; therefore, it may be more challenging for employees using public transport. It could also require workers to change their place of residence and schools for their children.
Impact on the Real Estate Market
It could also impact Bengaluru real estate in case Amazon decides to withdraw its operations from the WTC. It may not lease out the massive office space, thereby reducing the demand for residential rentals in the nearby areas. However, Amazon’s movement might improve the prospects of the airport region as a business center where other companies, such as Infosys and Boeing, would move base and set up their offices.
Future Plans
Amazon would develop a modern campus at the new site where they will focus on better collaboration and enhancing the work experience. The details about the campus have not yet been released.
