Workday India Secures 1.94 Lakh Sq Ft Office Space in Chennai for ₹1.85 Crore Monthly Rent

Workday India Private Limited, a leading enterprise artificial intelligence platform, has secured 1.94 lakh sq ft of office space in Chennai from Cowrks India Pvt Ltd. According to property registration documents, the lease agreement is valued at a monthly rent of ₹1.85 crore.

The commercial office space is located in the Millenia Business Park Campus in the Perungudi area of Chennai. The lease is structured in two parts, with the initial phase commencing in June 2026. The documents also reveal that Workday India Pvt Ltd has paid a significant deposit of ₹13 crore for the transaction, which was executed on January 10, 2026.

The agreement is in the form of a sublease deed, involving Workday India Pvt Ltd as the tenant, Cowrks India Pvt Ltd as the sublessor, and Arliga Ecoworld Infrastructure Pvt Ltd, a Brookfield Properties company, as the confirming party to the transaction.

The leased office space spans across the first, second, third, and fourth floors of the building. The rental agreement includes a 4.75% annual rental escalation. The rent commencement date for 1 lakh sq ft is January 2026, and for the remaining area, it is set for October 2026.

In addition to the monthly rent, Workday India Pvt Ltd will also pay ₹1.52 crore per month for the fit-outs for the first six years of the seven-year lease tenure.

The company's decision to expand in Chennai reflects the growing importance of the city in the Indian IT and real estate landscape. Chennai, known for its robust infrastructure and skilled workforce, continues to attract significant investments from both domestic and international companies.

Cowrks India Pvt Ltd, the sublessor, is a prominent player in the co-working and office space market. This transaction underscores the company's strategic approach to catering to the evolving needs of tech and enterprise clients.

Brookfield Properties, the confirming party in the transaction, is a global real estate company known for its extensive portfolio of commercial and residential properties. The company's involvement in this lease agreement highlights its commitment to supporting the growth of tech and enterprise clients in strategic locations like Chennai.

Queries have been sent to Workday India Pvt Ltd, Cowrks India Pvt Ltd, and Brookfield Properties for further comments. The story will be updated if a response is received.

This significant lease deal is part of a broader trend in the flexible office market, which has seen a surge in demand. According to recent reports, the flexible office market has grown threefold to 110 million sq ft, with Bengaluru and Delhi-NCR leading the way. However, Chennai is rapidly catching up, with South and West Chennai expected to lead the housing growth in the coming years.

In a related development, Quest Coworks Private Limited recently acquired over 57,500 sq ft of office space in Mumbai’s Andheri (East) for a total consideration of ₹55.84 crore. The seller in this transaction was Capgemini Technology Services India Limited. The deal involved five units at Akruti Softech Park located in the MIDC Marol Industrial Area, with unit sizes ranging from 10,500 sq ft to 11,885 sq ft and deal values ranging from ₹10.18 crore to ₹11.52 crore. The transaction also includes 51 car parking spaces.

These recent transactions highlight the dynamic nature of the Indian real estate market, particularly in key cities like Chennai and Mumbai. As more companies seek to expand their operations, the demand for quality office spaces is expected to remain robust, driving further investments and development in the sector.