UBS(US:UBS) The Economic Times·2026-02-09 16:00Core Insights - UBS Group AG's India subsidiary has leased an entire commercial tower in Pune's Yerwada micro market for over Rs 263 crore, indicating a significant investment in managed office spaces [6] - The lease spans approximately 165,290 sq ft, accommodating around 1,520 seats, and commenced on January 15 [6] - The agreement includes a starting rental of about Rs 240 per sq ft per month with a 5% annual escalation over a five-year period [6] Lease Details - The lease covers the ground floor to the seventh floor of the building and includes a lock-in period of 60 months for Smartworks Coworking Spaces Ltd, while UBS has a 30-month lock-in commitment [6][5] - UBS has paid a security deposit of approximately Rs 23.8 crore, equivalent to six months' rent [6] - As part of the sub-lease agreement, UBS will have external signage rights on the building [6] Market Trends - The transaction highlights the increasing trend of enterprise-grade managed office deals in India, with multinational companies outsourcing workplace management to specialized operators [5] - Long-term enterprise contracts provide workspace providers with predictable occupancy and stable cash flows, while offering occupiers benefits such as faster expansion and lower upfront capital expenditures [5] - The Yerwada and Airport Road micro market is becoming a key office corridor in Pune, benefiting from proximity to the airport and established IT and business parks [6]