Tata Consultancy Services (TCS) has secured one of Bengaluru’s largest office space leases at 360 Business Park in Electronic City, leasing 1.4 million sq ft for ₹2,130 crore over 15 years. The deal marks a significant expansion for TCS in Bengaluru’s southern IT corridor, with a monthly rent commitment of ₹9.3 crore and structured in two phases beginning April 2026.
Major Lease Deal Sealed by TCS in Bengaluru
Mumbai-headquartered IT giant Tata Consultancy Services (TCS) has signed a lease agreement for 1.4 million sq ft of office space at 360 Business Park in Bengaluru’s Electronic City, one of the city’s largest recent office transactions. The lease spans two towers—5A and 5B—with 6.8 lakh sq ft in Tower 5A and 7.2 lakh sq ft in Tower 5B, owned by Labzone Electronics City Pvt Ltd.
Lease Structure and Financial Details
The lease extends for 15 years with two phases: the first phase covering ground plus seven floors starting April 1, 2026, and the second phase covering floors eight to thirteen starting August 1, 2026. TCS will pay a monthly rent of ₹9.31 crore at ₹66.5 per sq ft, supported by a ₹112 crore security deposit. The lease includes a 12% escalation every three years, estimating a total outlay of ₹2,130 crore over the lease tenure.
Strategic Expansion in Bengaluru’s IT Corridor
This lease strengthens TCS’s footprint in Bengaluru’s southern IT corridor, a hotspot for large contiguous office spaces demanded by top technology firms. The project building offers three basements plus a ground floor and 13 upper floors. TCS is investing heavily in expanding campuses and infrastructure across India, with recent acquisitions in Bengaluru and plans for growth in tier-2 and tier-3 cities.
The FlexInsights Take
TCS’s massive ₹2,130 crore, 15-year lease deal highlights the continued strong demand for premium office spaces in Bengaluru’s key tech hubs. The phased structure and substantial financial commitment emphasise TCS’s long-term growth strategy and confidence in Bangalore as a crucial destination for IT services. This deal is a bellwether for the commercial real estate market in India, signalling robust tenant interest from leading technology firms even amid industry-wide shifts towards flexible and hybrid work models. Market watchers should closely observe similar big-ticket deals by other majors as the tech sector consolidates workspaces for future agility and scale.
