Tata Consultancy Services (TCS), India's largest IT services company, has signed one of the country's biggest office lease renewals, committing to pay nearly Rs 1420 crore in rent over the next decade for a massive office campus.
The deal highlights the continued importance of large physical workspaces for India's IT sector, even as hybrid and remote work models remain popular across the industry.
Where is the office located?
Unlike many recent corporate real estate deals that have focused on Bengaluru, Hyderabad, Mumbai, Gurugram or Noida, TCS has renewed its lease at the IT SEZ-Chennai One campus in Thoraipakkam, Chennai.
The facility is located on Chennai's prominent IT corridor and remains one of TCS's major operational hubs in southern India. According to property records, the lease agreement has been signed with IG3 Infra Limited.
How much space has TCS leased?
The agreement covers a massive 14.66 lakh square feet of chargeable office space, making it one of the largest commercial lease renewals in the country. The campus includes around 11.29 lakh square feet of carpet area spread across multiple towers and blocks within the Chennai One IT Special Economic Zone.
The first lease covers Floors 1 to 8 across four towers, while the second lease includes several floors in another block that also houses common facilities such as a cafeteria, food court and gym.
How much rent will TCS pay?
The lease document shows that TCS will pay rent at the rate of Rs 70 per square foot per month. This translates into a monthly rental outgo of approximately Rs 10.26 crore.
Over the full 10-year lease period, the total rental commitment is estimated at around Rs 1,420 crore. The agreement also includes a 12% rent escalation after every three years.