BlackRock Services India Pvt Ltd, the Indian subsidiary of global asset giant BlackRock Inc, has finalised a lease deal for 1.43 lakh sq ft of premium office space in KNG Tower 1, Ashok Nagar, Bengaluru. The agreement, valued at ₹410 crore for a ten-year term, sets a monthly rent of ₹2.72 crore (₹190/sq ft), with a 5% annual escalation and a security deposit of ₹21.75 crore. Registered in August 2025, this deal highlights Bengaluru’s strong commercial real estate momentum, attracting large-scale occupiers and international investors.
Bengaluru’s Commercial Leasing Surge
BlackRock’s new office space spans the ground plus five floors in KNG Tower 1, a Grade A asset in MG Road’s central business district. This lease highlights sustained demand from global corporates seeking premium managed office solutions in India’s top-tier cities. Bengaluru’s commercial real estate market demonstrated robust absorption rates, stable rental growth, and high investor confidence throughout 2025. As part of BlackRock’s India expansion, it also leased 42,700 sq ft at Raheja Altimus, Worli, Mumbai, on a five-year term with stepped rents, indicating growing investor interest across key Indian business hubs.
Global Firms Drive Market Strength
BlackRock joins several multinational firms driving Bengaluru’s Grade A office leasing market, cementing the city’s status as a preferred destination for international asset managers and technology sector companies. Flexible workspace providers and IT services remain key demand drivers, reflecting evolving workplace trends and the growing share of enterprise flexible leases.
The FlexInsights Take
BlackRock’s multi-city office leasing strategy aligns with the rising need for state-of-the-art workspaces and underscores sustained confidence among institutional investors in India’s leading commercial real estate markets. With healthy leasing volumes, rental stability, and supply growth, India’s Grade A office sector continues to be a magnet for global enterprises expanding their footprint. Bengaluru, in particular, stands out as a top destination amidst evolving workplace dynamics and increasing ESG-conscious investment.
