TCS Expands Real Estate Footprint with 1.4 Million Sq Ft Lease in Bengaluru
Bengaluru: Tata Consultancy Services (TCS) has leased 1.4 million sq ft at 360 Business Park in suburban Bengaluru's Electronic City, in one of the largest office lease transactions this year.
The IT giant has taken space in two under-construction office towers on a 15-year lease. TCS will pay a ₹112 crore deposit and a monthly rent of ₹9.31 crore. With a 12% rental escalation every three years, the company will pay over ₹2,000 crore in rent over the entire tenure, as per real estate data analytics platform Propstack.
The IT giant hadn’t taken up new office space for a long time. However, as employees return to work, their office space requirements have also risen, property consultants said. The company has been steadily expanding its real estate footprint, taking up office space or acquiring land across cities such as Bengaluru, Chennai, Kolkata, Hyderabad, Visakhapatnam, etc.
The company has leased new office space at Electronic City because it is relocating from its existing office premises in the locality. The real estate or office expansion is despite the fact that TCS earlier this year said it would reduce its workforce by 2%, impacting around 12,000 employees.
“TCS has the opportunity to expand and consolidate its office footprint. We are seeing good leasing momentum this year by companies driven by the growth in GCCs (global capability centres),” said Ram Chandnani, managing director - leasing at property advisory CBRE India.
A TCS spokesperson didn’t respond to Mint’s queries. Office leasing has seen a turnaround in recent years. In 2024, gross office leasing touched around 80 million sq ft and is expected to cross this level in 2025.
“The economic impact of TCS’s 1.4 million sq ft lease in India is significant across multiple dimensions. This large-scale real estate investment supports the expansion of India’s IT infrastructure, generating demand for construction, facility management, and ancillary services, thereby creating jobs and stimulating economic activity in related sectors,” said Raja Seetharaman, co-founder, Propstack.
“The deal also reflects strong corporate confidence in the Indian office market, positively influencing commercial real estate valuations and rental yields,” he added.
