TCS signs Rs2,130 crore lease in Bengaluru, paying Rs9.31 crore monthly for 1.4 million sq ft
IT giant TCS expands in Electronic City with a 15-year deal for Towers 5A and 5B at 360 Business Park, part of a nationwide office expansion strategy.
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Mumbai-headquartered Tata Consultancy Services (TCS) has inked a lease for 1.4 million square feet at 360 Business Park in Bengaluru’s Electronic City, marking one of the city’s largest office transactions in recent years, The Times of India reported, citing lease documents accessed via Propstack. The agreement covers Towers 5A and 5B of the project — 6.8 lakh square feet in Tower 5A and 7.2 lakh square feet in Tower 5B — owned by Labzone Electronics City Pvt Ltd.
The lease will be executed in two phases. The first phase, encompassing the ground floor plus seven additional floors, will begin on April 1, 2026, while the second phase, spanning floors eight through thirteen, is slated to start on August 1, 2026. The 15-year agreement carries a monthly rent of Rs 9.31 crore at Rs 66.5 per square foot, supported by a security deposit of Rs 112 crore and a 12 percent escalation every three years. Over the lease period, the total outlay is projected at Rs 2,130 crore.
Expansion in Bengaluru’s IT Corridor
The 360 Business Park project comprises three basements, a ground floor, and thirteen upper floors. With this lease, TCS is deepening its presence in Bengaluru’s southern IT corridor, where demand for large, contiguous office spaces remains robust among leading technology firms.
This move aligns with TCS’s broader expansion strategy. In June, reports indicated that the company had earmarked more than Rs 4,500 crore for establishing new campuses, leasing office space, and developing long-term infrastructure nationwide. In Bengaluru alone, TCS has acquired 1.4–1.6 million square feet from Sattva–Darshita Southern India Happy Homes for Rs 2,250 crore and another 3.2 million square feet from TRIL for Rs 1,625 crore—projects expected to provide 25,000 seats once operational.
Growth Beyond Metros
TCS is also increasing its footprint in Tier-II cities. In Visakhapatnam, it secured 21.6 acres on a 99-year lease from the state government in 2024. In Kochi, the company purchased 37 acres in the Kinfra Electronics Manufacturing Cluster for Rs 690 crore and has leased additional office space in Coimbatore and Hyderabad.
In Kolkata, TCS is developing 30 acres across its Sanchita Park and Bengal Silicon Valley Hub campuses. The project is projected to add 16,500 seats, with 12,500 expected to be ready in 2025 and the remainder phased over three years.
India’s Office Market Trend
The TCS lease is part of a broader wave of large-scale office deals by technology and financial services firms in India’s key cities. According to The Times of India:
- Amazon is leasing 1.1 million square feet from Sattva Group in Bengaluru.
- Google India has taken 1.6 million square feet at Bagmane Rio Park in Bengaluru and renewed 3.7 lakh square feet at Sattva Knowledge Capital in Hyderabad.
- JP Morgan has signed for 1.16 million square feet at Nirlon Knowledge Park in Goregaon, Mumbai.
- Morgan Stanley leased 1 million square feet at Oberoi Commerze III in Mumbai, with a starting monthly rent of Rs 15.96 crore.
- Qualcomm secured over 1.5 million square feet across an entire 20-story tower in K Raheja Corp’s IT park in Hyderabad.
These deals highlight the continuing appetite for large-format office space among global technology and financial firms, even as hybrid work models reshape corporate real estate strategies.
TCS Layoffs
TCS is facing significant scrutiny following its announcement to lay off approximately 12,000 employees globally, representing about 2% of its workforce. The layoffs are primarily affecting mid- and senior-level staff and are attributed to a strategic shift towards artificial intelligence and evolving client demands. TCS has stated that the decision is not related to AI replacing human workers but rather to a mismatch between current skills and future roles. In response, the Union of IT & ITES Employees (UNITE) protested, alleging that the company is replacing experienced employees with freshers at significantly lower pay. TCS has denied these claims, describing them as misleading.
Additionally, in April this year reports stated that over 20 former employees in the US filed a complaint with the Equal Employment Opportunity Commission, alleging discrimination based on race and age, claiming that their jobs were given to individuals on H-1B visas. TCS has refuted these allegations, asserting that they are meritless and misleading.
