BNP Paribas leases 5 lakh sq ft at Mindspace REIT’s One Radial in Chennai for 10 years

Chennai real estate: BNP Paribas has leased around 5 lakh sq ft of space at One Radial, an office complex owned by Mindspace Business Parks REIT

Global banking major BNP Paribas has leased around 5 lakh sq ft of office space across four floors at One Radial, a commercial complex owned by Mindspace Business Parks REIT in Chennai, for a 10-year term, sources said.

BNP Paribas has leased around 5 lakh sq ft of office space across four floors at One Radial, a commercial complex owned by Mindspace Business Parks REIT in Chennai (Photo for representational purposes only) (Pexels)

Office rentals in the area are around ₹90 per sq ft per month, according to people familiar with the transaction.

The deal comes amid demand for large office spaces from multinational companies setting up or expanding their global capability centres (GCCs) in India.

BNP Paribas could not be reached for comment. Mindspace Business Parks REIT did not respond to queries.

Mindspace REIT has a growing presence in Chennai, with a total leasable area of 6.3 million sq. ft. across Commerzone Porur, Commerzone Pallikaranai and the recently acquired One Radial. The portfolio comprises 5.1 million sq. ft. of completed space and 1.2 million sq. ft. under construction.

In Q1 FY27, Mindspace REIT strengthened its presence through the acquisition of Commerzone Pallikaranai and One Radial, two institutional-grade campuses of 2.6 million sq. ft. each, complementing the established 1.2 million sq. ft. Commerzone Porur campus.

The acquisition of these institutional-quality campuses in a high-growth corridor, anchored by blue-chip tenants with clear income visibility, makes it a strong strategic fit. These additions have positioned Mindspace REIT among Chennai’s top two office asset owners. Chennai is strategically important because of its strong GCC-led demand, low vacancy and rising supply constraints across key office corridors, the company has said in public disclosures.

The city also offers a strong cost-to-quality proposition, with office rentals nearly 20% lower than Bengaluru, the company has said.

Chennai commercial real estate market

Chennai recorded 5.9 mn sq ft of office transactions in January-September 2026 (9M CY2026), the third-highest nine-month volume since 2018, according to Knight Frank India, an international property consultancy.

The 7.9 mn sq ft recorded in 9M CY2025, the city’s highest nine-month volume since 2018. Vacancy stood at 8.1%, the lowest among India's eight major office markets, and average rents rose 7% YoY, as per a report by the consultancy.

Leasing increased quarter-on-quarter (QoQ), from 1.5 million sq ft in Q1 2026 to 2.1 mn sq ft in Q2 and 2.2 mn sq ft in Q3. New completions of 2.9 mn sq ft, up 95% from a year earlier. Vacancy remained tight at 8.1% in Q3 2026, down from 7.6% a year earlier and the lowest among the eight markets.

GCCs leased 2.5 mn sq ft in Chennai during 9M CY2026, accounting for 43% of transactions and remaining the city's largest occupier group. India-facing businesses increased leasing by 24% year-on-year (YoY) to 1.3 mn sq ft, raising their market share to 22% from 13%, the report noted.

Flex operators leased 1.6 mn sq ft, up 9% YoY. Average transacted rents rose 7% YoY to ₹75.1 per sq ft per month in Q3 2026. Limited availability of quality space continued to support rental growth. Grade A space accounted for 82% of transactions during 9M CY2026, the report noted.