TCS Leases 630,000 Sq. Ft. in Chennai Amid IT Slowdown

TCS: In Chennai’s Ozone Techno Park, Tata Consultancy Services Ltd. (TCS) has leased around 630,000 square feet of office space for ₹2.8 crore per month.

Documents obtained by real estate data analytics startup Propstack show that the biggest IT services provider in India leased a space in the Navalur suburb of Chennai from Platinum Holdings Pvt. Ltd. for ten years in exchange for a ₹25.5 crore deposit. According to the conditions of the lease, the rent will rise by 12% every three years.

An email asking about the transaction received no response from a TCS representative. Due to geopolitical and economic uncertainty throughout the world, domestic IT services companies have been leasing office space slowly in key Indian cities.

Propstack Co-Founder Statement:

Raja Seetharaman co founder of Propstack said, “Despite broader economic factors and technological shifts impacting the IT sector, companies continue to commit to significant office spaces, reflecting diverse operational strategies including work from office and regional preferences,” said Seetharaman. “This transaction also indicates that while GCCs (global capability centres) continue to be the flavour, IT companies in India continue to expand.”

According to Propstack, TCS leased over 1 million square feet of office space in Hyderabad for 15 years last year. The lease began on October 1st, although the registration completed in April of this year. However, other IT companies have been slow to lease space; Wipro Ltd. and Cognizant Technology Solutions Corp. have even relinquished real estate to cut costs.

Cognizant Sold Property:
About 600,000 square feet of office space on Chennai’s Old Mahabalipuram Road were sold by Cognizant to Bengaluru developer Bagmane Constructions earlier this year for ₹612 crore.

Also Read: TCS Gets 21 Acres in Vizag for 99 Paisa: Here’s Why

CBRE India, a property advisory firm, reports that gross office space leasing in India reached 18 million square feet during the January–March period. Forty-five percent of this leasing went to GCCs, or the remote operations of multinational industries in India.