IT giant Tata Consultancy Services (TCS) has leased 17.52 lakh sq ft of office space in Sattva Knowledge Point, Bengaluru, for ₹975 crore over five years—a pivotal transaction that reaffirms Bengaluru’s prominence as India’s leading IT real estate hub. The deal includes major commitments in scale, investment, and duration, reflecting the city’s ongoing dominance in commercial office leasing despite industry workforce adjustments.
ransaction Overview
- TCS has taken on lease three floors in Tower A and B at Sattva Knowledge Point, Yeshwanthpur, Bengaluru.
- The lease size measures nearly 1.75 million sq ft with a per-month rent of ₹15.37 crore and a per-sq-ft rate of ₹87.73.
- Security deposit payable is ₹25 crore.
- The lease contract features a 14% rent escalation clause every three years and a renewal option for an additional five years.
- In Bengaluru, TCS previously leased 1.4 million sq ft at 360 Business Park for ₹2,130 crore over 15 years.
- In Chennai, the firm leased 6.3 lakh sq ft at Ozone Techno Park for ₹2.8 crore monthly rent, commencing March 2025.
- In Hyderabad, TCS leased more than 10 lakh sq ft at Paradigm Rajapushpa in the financial district for ₹4.3 crore monthly rent.
Market Impact and Trends
- The Bengaluru transaction stands among the year’s largest corporate office deals, strengthening the city’s strategic relevance for top tech occupiers.
- TCS’s lease underscores a pattern of tier-1 IT tenants preferring premium, large-format developments across Indian metros.
- Recent announcements about TCS’s plan to reduce its workforce by 2% in FY26 (over 12,000 jobs) have raised property market concerns, though major office deals still show continued demand for quality commercial space.
The FlexInsights Take
TCS’s multi-city leasing spree—especially its standout Bengaluru office deal—illustrates robust, long-term corporate confidence in India’s commercial real estate. Despite sector headwinds like downsizing, prime office developments remain central to tech firms’ operational strategies. Investors and analysts can expect premium assets in major metros to retain high absorption and rental growth momentum, firmly anchored by the ongoing requirements of marquee IT players.
