TCS Signs Major 1.4 Million sq ft Office Lease in Bengaluru

Tata Consultancy Services (TCS) has finalized a substantial office lease agreement for 1.4 million sq ft at 360 Business Park in Bengaluru’s Electronic City, marking one of the largest office transactions of the year. The deal involves leasing space within two under-construction office towers for a duration of 15 years. TCS will pay an initial deposit of ₹ 112 crore and a monthly rent of ₹ 9.31 crore. With an anticipated rental escalation of 12% every three years, the total rent over the lease term is projected to exceed ₹ 2,000 crore.

Strategic Expansion Amid Workforce Changes

This lease agreement signifies a notable shift for TCS, which had not expanded its office space in recent years. As employees return to physical work environments, the demand for office space has increased, prompting TCS to enhance its real estate holdings. The move follows a broader strategy, with the company acquiring office space and land in various cities, including Bengaluru, Chennai, Kolkata, Hyderabad, and Visakhapatnam. The new space in Electronic City will replace TCS’s existing office in the area.

Despite announcing a 2% workforce reduction earlier this year, affecting approximately 12,000 employees, TCS remains committed to expanding its office presence. According to Ram Chandnani, Managing Director of Leasing at property advisory CBRE India, this expansion reflects a growing trend among companies seeking to consolidate their office footprints amid a recovering market.

Impact on the Indian Office Market

The recent lease agreement signifies a resurgence in office leasing, which has seen a turnaround in recent years. In 2024, gross office leasing in India reached around 80 million sq ft, with expectations to surpass this figure in 2025.

Raja Seetharaman, co-founder of Propstack, emphasized the economic implications of TCS’s lease, stating, “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.” Seetharaman also noted that the deal illustrates strong corporate confidence in the Indian office market, positively affecting commercial real estate valuations and rental yields.

The TCS lease at 360 Business Park not only reflects the company’s strategic planning in adapting to new workplace dynamics but also highlights a broader trend of recovery in the commercial real estate sector across India. As the IT sector continues to evolve, such investments signify a commitment to fostering growth and innovation within the industry.