The findings, released at a leadership meet in Bengaluru, come from JLL’s India’s AI Revolution in Corporate Real Estate report based on its Global Real Estate Technology Survey 2025. The data shows the sector is at a decisive turning point—racing to adopt AI for cost optimization and space efficiency, yet struggling to convert experiments into measurable business value.

Adoption Exploded, Outcomes Didn’t

AI use in corporate real estate (CRE) has jumped from under 5% in 2023 to 91% in 2025, an 18-fold rise in just two years. However, execution gaps remain severe:

• 56% of organizations achieved only 2–3 AI objectives
• 26% achieved none at scale
• Only 5% achieved 4–5 objectives successfully

This reveals a widening divide between companies experimenting with AI and those actually benefiting from it.

Broken Tech Foundations Are the Real Problem

The biggest obstacle isn’t lack of interest—it’s outdated infrastructure.

• 88% of firms say at least three existing tech systems are failing
• 57% lack a clear AI strategy
• 29% cite talent shortages in technology leadership

Legacy systems are preventing clean data integration, which is essential for AI performance. As a result, many companies are attempting advanced automation on disconnected digital ecosystems.

Cost Pressure Is Driving Boardroom Urgency

Corporate leaders are pushing workplace teams to deliver real results fast:

• 93% of executives say reducing real estate costs is a top strategic priority
• 93% plan to invest in system upgrades
• 58% classify upgrades as a strategic imperative

The report predicts that by 2030, about 33% of workplace real estate heads will report directly to CTOs, up from 16% today—signalling a structural shift where office portfolios are managed like technology platforms rather than static assets.

Where Companies Are Using AI Most

Indian firms are focusing on high-impact use cases instead of small automation wins:

1. Portfolio optimization – 59%
   AI helps right-size office space, reduce lease waste, and cut costs.
2. Energy management – 54%
   Used to lower utility bills and improve sustainability metrics.
3. Real estate data workflows – 49%
   Fixing messy datasets for faster executive decision-making.

What Separates Winners From Strugglers

According to the report, companies that successfully scale AI consistently follow three steps:

• Audit existing tools and data before rollout
• Define measurable success metrics upfront
• Build cross-functional teams across IT, HR, finance, and workplace operations

Firms that skip these fundamentals tend to remain stuck in pilot mode.

Industry Takeaway

India’s corporate real estate sector isn’t lacking ambition—it’s facing an execution challenge. AI adoption is nearly universal, but real transformation will depend on fixing data systems, upgrading infrastructure, and aligning strategy with measurable outcomes.

In short: the AI race has begun, but only a handful are actually winning.

Also Read: A massive construction boom for data centers—the ‘digital warehouses’ that power our online world—is underway, fueled by the explosive growth of Artificial Intelligence. A recent report reveals a staggering $180 billion is being poured into these facilities across Asia. Mumbai is at the heart of this transformation, with huge new AI-ready campuses and a major push for green energy.

The post AI Boom or Illusion? Only 5% of Firms See Real Results Despite Massive Adoption in Corporate Real Estate appeared first on Square Feat India.

The deal strengthens Mindspace REIT’s position across India’s most coveted office destinations—Worli, BKC Annexe, and Kalyani Nagar (Pune)—and represents the REIT’s second major sponsor acquisition.

The Assets Acquired

Mindspace REIT will acquire 100% equity in:

1. Pramaan Properties Pvt Ltd

• Ascent – Worli (Mumbai):
  ~0.45 million sq ft of newly completed premium office space in one of India’s most prestigious micro-markets.
  Occupancy: ~86%
• Kalyani Nagar Office Building (Pune):
  ~0.1 million sq ft of Grade A space
  Occupancy: 100%

2. Sundew Real Estate Pvt Ltd

• The Square Avenue 98 (BKC Annex, Mumbai):
  ~0.2 million sq ft Grade A+ office building
  Occupancy: 100%
  Anchored by leading global banks

Together, the assets comprise ~0.8 million sq ft of leasable area with a combined Gross Asset Value (GAV) of ₹3,106 crore, as per two independent valuations. Mindspace secured the assets at a 6.1% discount.

Portfolio Impact

Post-acquisition, Mindspace REIT’s portfolio will expand from 38.2 msf to ~39 msf, further deepening its presence in prime, front-office CBD markets.

Key performance expectations (Proforma FY26):

• NOI growth: ~9%
• DPU accretion: ~1.7%
• Front-office portfolio value contribution: ~7.9%
• Addition to FY26 NOI: ~₹226 crore
• GAV increase: From ₹41,020 crore to ₹44,126 crore
• LTV ratio: Rises marginally from 24.2% to 24.7%

The assets bring embedded mark-to-market potential, long-term stable rentals, and marquee tenants—including two of the biggest Wall Street names.

Management Commentary

Ramesh Nair, MD & CEO, Mindspace REIT, said:
“Bringing these assets into the Mindspace REIT portfolio is a strategic step in strengthening our presence in Mumbai’s most sought-after CBD office districts. These are high-quality, institutional assets with strong cash flows and global tenants. We continue to invest in great locations, work with great tenants, and create durable value for our unitholders.”

Strengthening a Disciplined Growth Journey

Over the years, Mindspace REIT has expanded through strategic acquisitions such as:

• c. 1.82 msf Commerzone Raidurg
• Full ownership consolidation at Commerzone Porur (Chennai)
• Expansion at Commerzone Yerwada (Pune)
• The 0.81 msf acquisition of The Square, 110 Financial District (Hyderabad)

The current transaction marks another major milestone in its value-accretive, institutional-grade expansion strategy.

Also Read: Mindspace Business Parks REIT delivered a strong Q2 FY26 performance with 25.8% YoY NOI growth

The post Mindspace REIT Acquires ₹2,916 Crore Trophy Office Assets in Mumbai and Pune from K Raheja Corp appeared first on Square Feat India.

India’s retail sector recorded one of its strongest quarters in recent history, with 3.2 million sq ft of gross leasing in Q3 2025 (July–September) across the top seven cities, marking a 65% year-on-year rise, according to JLL.

Delhi NCR alone accounted for 35% of the total leasing, thanks to strong demand at newly opened malls. With this quarter’s performance, leasing for January–September 2025 reached 8.9 million sq ft, already 110% of 2024’s total annual leasing.

Quarter-on-Quarter Growth Driven by Fresh Supply

On a sequential basis, Q3 leasing grew 22%. New supply infusion of 1.5 million sq ft in Delhi NCR and Hyderabad unlocked expansion plans that retailers had deferred earlier due to limited availability.

Both shopping malls (53%) and high streets (41%) contributed significantly to fresh leasing during the quarter.

Delhi NCR and Hyderabad Dominate Leasing

Among India’s top retail markets, Delhi NCR and Hyderabad jointly contributed 47% of Q3 leasing activity. Delhi NCR led with strong mall absorption, while Hyderabad’s high streets saw aggressive expansion by domestic and international brands.

Mumbai followed with 0.6 million sq ft of leasing, trailed by Bengaluru at 0.4 million sq ft. Kolkata and Chennai maintained steady momentum, while Pune recorded a marginal dip compared to Q2 2025.

Domestic Retailers Lead Space Absorption

Domestic retailers continued to outperform, contributing 81% of Q3 leasing, with fashion and apparel brands accounting for 35% of the take-up. The food & beverage (16%) and daily needs & grocery (11%) categories also remained active.

JLL noted that D2C brands are aggressively expanding their “click-and-mortar” presence, especially in fashion, jewellery, beauty, and wellness categories.

Luxury Retail Grows, Though Cautiously

Luxury brands leased 0.2 million sq ft during the first nine months of 2025 — a 19% YoY rise. While new luxury entrants have been few in 2025, the category continues to gain traction, supported by premium retail infrastructure across Indian metros.

Leasing Likely to Hit a New Peak in 2025

With the eight-quarter rolling average hovering around 2–2.5 million sq ft, JLL expects total retail leasing for 2025 to reach 10.5–11.5 million sq ft, exceeding earlier forecasts.

Additionally, 4.7 million sq ft of new retail supply is slated for delivery in Q4 2025. Looking ahead, 37 million sq ft of new mall supply is projected to become operational across top cities by 2029, supporting sustained expansion from retailers.

Also Read: Retail Real Estate Booms in India: 169% YoY Growth in Q1 2025 Leasing Activity

The post India’s Retail Leasing Soars 65% YoY in Q3 2025, Hits 3.2 Million Sq Ft appeared first on Square Feat India.