TCS Secures ₹2,130 Crore, 15-Year Lease for 1.4 Million Sq Ft Office Space in Bengaluru

Tata Consultancy Services (TCS), one of India’s leading IT majors, has secured one of Bengaluru’s largest commercial real estate deals by leasing 1.4 million sq ft of office space for ₹2,130 crore over 15 years, according to documents accessed by Propstack. The office space is located in the 360 Business Park in the city’s southern IT corridor of Electronic City, a hub that has become synonymous with the IT industry in Bengaluru.

The lease covers 6.8 lakh sq ft in Tower 5A and 7.2 lakh sq ft in Tower 5B, with a consolidated monthly rent of ₹9.31 crore at a rate of ₹66.5 per sq ft. TCS has also provided a security deposit of ₹112 crore. The lease has been signed with Labzone Electronics City Pvt Ltd, the property's developer, for a 15-year tenure with a rent escalation of 12% every three years. The total rental outflow over the lease period is estimated at around ₹2,130 crore.

This deal comes at a time when the IT sector is showing renewed confidence in expanding its footprint in Bengaluru. Earlier this year, Google opened its Ananta campus in Bengaluru, a 1.6 million sq ft facility in Mahadevapura, which is also its largest office in India. In 2024, Morgan Stanley leased 1 million sq ft in Mumbai on a nine-year term, with a starting monthly rent of ₹15.96 crore. Against this backdrop, the TCS deal is among the largest commercial real estate transactions Bengaluru has seen in recent years, experts noted.

Vivek Rathi, National Director-Research at Knight Frank India, highlighted the strong comeback of third-party IT Services in H1 2025, with transaction volumes jumping 189% compared to H1 2024. The segment was driven by large-format deals, reflecting renewed confidence among tech occupiers. “One of the defining trends in Bengaluru’s overall office market was the surge in average deal size, with the top 10 transactions accounting for nearly 50% of total leasing,” Rathi said.

The TCS lease will commence in two phases. Phase 1, comprising the ground plus seven floors, is scheduled to start from April 1, 2026, while Phase 2, covering the 8th to 13th floors, will commence from August 1, 2026. Together, the two towers will add more than 1.4 million sq ft of Grade-A workspace for the IT services giant.

However, the IT sector has also been facing challenges, with TCS announcing plans to trim its workforce by 2% in FY26, amounting to more than 12,000 employees. This has raised concerns about the potential impact on India’s property market. Bengaluru, the country’s tech capital, has seen housing costs soar in recent years, especially in hubs like Whitefield, Bellandur, and Electronic City. Real estate experts are now speculating that a correction in both rentals and capital values may be looming due to the wave of IT sector layoffs.

Despite these challenges, TCS has been actively expanding its office space in various cities. In March, TCS leased 6.3 lakh sq ft of office space in Chennai's Ozone Techno Park for ₹2.8 crore monthly rent. Located in Navalur, the lease spans across seven floors, and the rental commenced on March 15, 2025. Previously, in April, TCS leased 10.18 lakh sq ft of office space in Hyderabad's financial district, an IT suburb in Serlingampally Mandal, for ₹4.3 crore monthly rent. The office space is located in Paradigm Rajapushpa and spans across 18 floors, with the building consisting of five basements, a ground, and 18 office floors.

Email queries have been sent to TCS and Labzone Electronics City. If a response is received, the article will be updated.

In conclusion, the TCS deal in Bengaluru underscores the strong demand for office space in the city’s IT corridor, even as the sector faces challenges. The lease not only highlights TCS’s commitment to expansion but also reflects the broader trends in the commercial real estate market in Bengaluru.