TCS Leases 630,000sqt Office Space in Chennai's Ozone Techno Park
At a monthly rent of Rs.2.8 crore, Tata Consultancy Services Ltd (TCS) has leased around 630,000 square feet of office space in Chennai's Ozone Techno Park.
According to records obtained by real estate data analytics firm Propstack, the biggest provider of IT services in India leased a facility in the Navalur suburb of Chennai from Platinum Holdings Pvt. Ltd. for ten years after making a Rs.25.5 crore deposit.
The agreement stipulates that the rent will rise by 12 percent every three years.
Due to geopolitical and economic uncertainty around the world, domestic IT services companies have been leasing office space slowly in key Indian cities.
Raja Seetharaman, co-founder, Propstack, however, said domestic IT services companies were continuing to expand.
“Despite broader economic factors and technological shifts impacting the IT sector, companies continue to commit to significant office spaces, reflecting diverse operational strategies including work from office and regional preferences,” said Seetharaman.
“This transaction also indicates that while GCCs (global capability centres) continue to be the flavour, IT companies in India continue to expand.”
According to Propstack, TCS leased more than 1 million square feet of office space in Hyderabad for 15 years last year. The lease had started on October 1st, even though the registration was completed in April of this year.
Other IT companies have, however, been slow to lease; in an effort to save expenses, Cognizant Technology Solutions Corp. and Wipro Ltd. have even given up real estate.
Earlier this year, Cognizant paid Rs.612 crore to Bengaluru developer Bagmane Constructions for around 600,000 square feet of office space on Chennai's Old Mahabalipuram Road.
Also Read: Will Nvidia & Jensen Huang Lead Indian AI Chip Mission to the Future?
According to real estate advising firm CBRE India, gross office space leasing in India reached 18 million square feet between January and March. Multinational corporations' remote operations in India, or GCCs, were responsible for 45 percent of this office space leasing.