Bengaluru: Tata Consulting Services Limited (TCS) rented 630,000 square feet. Monthly rent for office space at Chennai Ozone Technology Park ₹28 million.
India’s largest information technology (IT) service company leased space in the suburbs of Chennai from Platinum Holdings. 10 years after payment of deposits Co., Ltd. ₹According to documents accessed by real estate data analytics firm PropStack, it is 250 crore. Under the terms of the lease, rent will increase by 12% after every three years.
A TCS spokesperson did not respond to email inquiries about the transaction.
Office space rentals for domestic IT service companies have been slow across major Indian cities, reflecting the industry slowdown in global economic and geopolitical uncertainty.
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However, Raja Seetharaman, co-founder of PROPSTACK, said domestic IT service companies are continuing to expand.
“Although economic factors and technological shifts have affected IT sectors, the company continues to work on office spaces, reflecting a variety of operational strategies, including office and regional preferences,” Seetharaman said. “The deal also shows that IT companies in India are expanding despite the continued flavour of the GCC (Global Capacity Centre).”
Last year, TCS leased more than 1 million square feet of office space in Hyderabad for 15 years. Registration was held in April this year, but the lease has begun on October 1.
However, other IT companies are slow to lease, and Cognizant Technology Solutions Corp. and Wipro Ltd even abandoned real estate to rationalize costs.
Earlier this year, Cognizant sold about 600,000 square feet. Office property located in Chennai’s old Mahabalipuram Road to Bangalore developer Bagmane building ₹6.12 million.
Total office space rentals across India hit 18 million square feet. According to Indian property consulting firm CBRE, during January to March. Remote operations of the GCC or Indian multinationals account for 45% of the office space lease.
