Tata Consultancy Services has renewed a 10-year lease for nearly 1.47 million sq. ft. at Chennai One IT SEZ, committing approximately ₹1,420 crore in rent. The deal underscores sustained demand for large-scale office campuses and strengthens Chennai’s position as a key technology and commercial real estate hub.
Tata Consultancy Services (TCS) has renewed its lease for approximately 14.7 lakh sq. ft. of office space at Chennai One IT SEZ in Thoraipakkam, Chennai, committing nearly ₹1,420 crore in rental payments over the next decade. The renewed agreement, effective from November 1, 2025, covers multiple floors across Block A–Alpha and Block B–Magnum of the business park owned by IG3 Infra Limited. The transaction stands out as one of the most significant office lease renewals in Chennai’s commercial real estate market and highlights the enduring appeal of large-format technology campuses.
Under the terms of the agreement, TCS will pay a monthly rent of ₹10.26 crore, calculated at ₹70 per sq. ft., with a 12% escalation every three years. The company has also deposited ₹94.64 crore as security. The renewal follows a previous seven-year lease that ran from November 2018 to October 2025, demonstrating the company’s long-term commitment to the location and its operational ecosystem.
Large Campuses Continue to Attract Enterprise Occupiers
The transaction comes at a time when workplace strategies are evolving amid growing discussions around artificial intelligence, automation, and changing space utilisation patterns. However, industry experts believe the deal reinforces the importance of physical office infrastructure for large enterprises. Commenting on the development, Raja Seetharaman, Co-founder of Propstack, said, “Despite market narratives around AI-driven optimisation and potential desk disruptions, TCS’s 1.47 million sq ft renewal at Chennai One demonstrates that demand for large-scale office campuses remains resilient.”
He further added, “Following its landmark expansions in Bengaluru (1.4 million sq ft) and Hyderabad (1.02 million sq ft), this ₹1,420-crore commitment in Chennai shows that leading technology companies continue to view physical infrastructure as critical to supporting next-generation AI and business operations at scale.”
Chennai Strengthens Position as a Technology Workspace Hub
The renewal is part of TCS’s broader real estate expansion strategy across major Indian technology markets. Earlier this year, the company leased 6.3 lakh sq. ft. at Ozone Techno Park in Chennai under a separate 10-year agreement. In Bengaluru, TCS also secured approximately 17.52 lakh sq. ft. at Sattva Knowledge Point in a major leasing transaction last year.
For the office and flexible workspace industry, these large-scale commitments send a strong message. While hybrid work models continue to evolve, enterprise occupiers are still investing heavily in premium office infrastructure to support workforce growth, innovation, and future-ready operations. The latest Chennai deal not only reinforces confidence in the city’s commercial real estate market but also highlights how leading technology companies remain key drivers of office demand across India’s major business hubs.
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