US tech giant IBM is reportedly in advanced discussions to lease 260,000 square feet of office space at Gurgaon’s TRIL Tower, a prominent property developed by Tata Realty. The move signals the increasing demand for Grade A office spaces in India, particularly in the thriving Gurgaon NCR region, as companies seek premium infrastructure and amenities.

“The Gurgaon NCR region is witnessing the emergence of new quadrants of development, driven by a strong ‘flight to quality’ trend,” said Peush Jain, Managing Director of Commercial Leasing and Advisory at Anarock. He highlighted that corporations are elevating workplace strategies to enhance employee engagement and operational efficiency.

India’s Office Leasing Momentum

India’s office leasing market is expected to hit a record 83-85 million square feet in 2024, a 13% increase over the previous peak in 2023, according to Cushman & Wakefield. The country has emerged as a global leader in office space absorption, contributing 70% of the Asia-Pacific (APAC) region’s net absorption. This growth comes as the US and China real estate sectors face challenges.

The demand for Grade A office spaces has been driven by multiple factors, including the return-to-office movement, the rise of unicorn startups, and the growth of Global Capability Centres (GCCs). GCCs account for 30% of India’s gross leasing volume (GLV), with their share expected to grow as companies establish and expand operations in the region.

TRIL Tower: A Hub for Major Players

The TRIL Tower, developed by Tata Realty, has become a sought-after location for corporations. Earlier this year, US networking company Ciena leased 135,000 square feet in the same building, underscoring its appeal to global tech firms. Industry experts note that as Special Economic Zones (SEZs) are denotified, newer areas like TRIL Tower open up opportunities for corporations seeking premium office spaces.

“A lot of space that was part of the SEZ is getting denotified now, opening up newer areas for corporations. Tata also has a large portfolio under SEZ and is getting it denotified,” said a consultant familiar with the developments.

India’s Growing Real Estate Dominance

India’s global office leasing market dominance highlights its growing appeal as a hub for innovation and talent. As Big Tech expands its footprint, flexible workspace operators and GCCs further fuel demand. The ongoing investment in infrastructure and top-tier amenities makes regions like Gurgaon increasingly attractive for companies prioritising operational excellence.

The IBM lease, if finalised, would add another major tenant to the TRIL Tower’s roster and underscore Gurgaon’s strategic importance in India’s commercial real estate landscape. With a record-breaking year for office leasing on the horizon, India continues to solidify its position as a bright spot in the global market.