Mega Deal: TCS Leases 1.4 Million Sq Ft in Bengaluru at Rs 9.31 Crore/Month

TCS has signed a 15-year lease for 1.4 million square feet in Bengaluru's Electronic City, paying a monthly rent of Rs 9.31 crore. The agreement, part of a larger expansion in South India, includes periodic rent increases and security deposit.

Bengaluru: Tata Consultancy Services (TCS) will pay a monthly rent of Rs 9.31 crore for its office in Bengaluru. TCS has signed a 15-year lease for the office space located in 360 Business Park, Electronic City. The building spans 1.4 million square feet. TCS is paying Rs 66.5 per square foot, totaling Rs 9.31 crore monthly. TCS has placed a security deposit of Rs 112 crore for this agreement.

TCS will occupy spaces 5A and 5B, measuring 6.8 lakh square feet and 7.2 lakh square feet respectively, within 360 Business Park. TCS has signed the agreement with Labzone Electronics City Private Limited.

Key Highlights of the Lease Agreement

• The agreement spans 15 years and is divided into two phases.
• Phase 1: Ground floor to 7th floor, effective from April 1, 2026.
• Phase 2: 8th to 13th floors, effective from August 1, 2026.
• Rent will increase by 12% every three years.
• The total estimated cost is Rs 2,130 crore.

Bengaluru, being a major IT hub, has attracted TCS to establish a significant office presence. Prior to this, TCS acquired 1.4-1.6 million square feet from Sattva-darshitha Southern India Happi Homes for Rs 2,250 crore. TCS also acquired 3.2 million square feet from TRIL for Rs 1,625 crore. It is expected to add 25,000 seats at once.

TCS Expansion in South India

TCS is actively expanding its operations in South India. This agreement is part of TCS's Rs 4,500 crore investment announced in 2025. It has acquired 21.6 acres on a 99-year lease from the state government in cities like Coimbatore, Hyderabad, and Visakhapatnam. In Kochi, it purchased 37 acres from Kinfra Electronics Manufacturing Cluster for Rs 690 crore. Additionally, TCS is developing 30 acres in Kolkata at Sanchita Park and Bengal Silicon Valley Hub, with a capacity for 16,500 employees.

MNCs Focusing on South Indian Cities

Not just TCS, but Amazon has also leased 1.1 million square feet in Bengaluru. Similarly, Google India has taken 1.6 million square feet in Bagmane Rio Park, Bengaluru, and renewed 3.7 lakh square feet in Hyderabad. Mumbai is also emerging as a preferred location, with JP Morgan and Morgan Stanley taking 1.16 million square feet and 1 million square feet respectively.