IT major Tata Consultancy Services (TCS) has signed one of Bengaluru’s largest commercial real estate deals, leasing 1.4 million sq ft of office space for ₹2,130 crore over 15 years, documents accessed by Propstack show.
The office space is spread across Towers 5A and 5B in the city’s southern IT corridor of Electronic City at 360 Business Park. The lease covers 6.8 lakh sq ft in Tower 5A and 7.2 lakh sq ft in Tower 5B, with a consolidated monthly rent of ₹9.31 crore at a rate of ₹66.5 per sq ft. The documents showed that TCS has also provided a security deposit of ₹112 crore.
According to documents, the lease has been signed with Labzone Electronics City Pvt Ltd, the property's developer, for a 15-year tenure with a rent escalation of 12% every three years. The total rental outflow over the lease period is estimated at around ₹2,130 crore.
Earlier this year, Google opened its Ananta campus in Bengaluru, a 1.6 million sq ft facility in Mahadevapura that is also its largest office in India. In 2024, Morgan Stanley leased 1 million sq ft in Mumbai on a nine-year term, with a starting monthly rent of ₹15.96 crore. Against this backdrop, the TCS deal is among the largest commercial real estate transactions Bengaluru has seen in recent years, experts said.
“Third-party IT Services made a strong comeback in H1 2025, with transaction volumes jumping 189% compared to H1 2024. The segment was driven by large-format deals, reflecting renewed confidence among tech occupiers." Vivek Rathi, National Director- Research, Knight Frank India, told HT.com.
{{/usCountry}}“Third-party IT Services made a strong comeback in H1 2025, with transaction volumes jumping 189% compared to H1 2024. The segment was driven by large-format deals, reflecting renewed confidence among tech occupiers." Vivek Rathi, National Director- Research, Knight Frank India, told HT.com.
{{/usCountry}}Experts said that third-party IT Services also witnessed some of the largest transactions in Bengaluru’s office market during H1 2025, signalling a strong revival in expansion-led demand.
"One of the defining trends in Bengaluru’s overall office market was the surge in average deal size, with the top 10 transactions accounting for nearly 50% of total leasing,” Rathi said.
According to the documents, the TCS lease will commence in two phases. Phase 1, comprising ground plus seven floors, is scheduled to start from April 1, 2026, while Phase 2, covering the 8th to 13th floors, will commence from August 1, 2026. Together, the two towers will add more than 1.4 million sq ft of Grade-A workspace for the IT services giant.
Email queries have been sent to TCS and Labzone Electronics City. If a response is received, the copy will be updated.
Also Read: TCS layoffs: Will job cuts in the tech sector trigger a real estate downturn in Bengaluru?
TCS layoffs and their real estate impact
With TCS announcing plans to trim its workforce by 2% in FY26, amounting to more than 12,000 employees, there have been concerns about the ripple effects on India’s property market. Bengaluru, the country’s tech capital, has seen housing costs soar in recent years, especially in hubs like Whitefield, Bellandur, and Electronic City. But the wave of IT sector layoffs is now fuelling speculation that a correction in both rentals and capital values may be looming, say real estate experts.
Also Read: ₹2.8 crore monthly rent">TCS Limited leases 6.3 lakh sq ft of office space in Chennai for ₹2.8 crore monthly rent
Previous office leases by TCS
In March, TCS leased 6.3 lakh sq ft of office space in Chennai's Ozone Techno Park for ₹2.8 crore monthly rent. Located in Navalur, the lease spans across seven floors, and the rental commenced on March 15, 2025, documents showed.
Previously, in April, TCS leased 10.18 lakh sq ft of office space in Hyderabad's financial district, an IT suburb in Serlingampally Mandal, for ₹4.3 crore monthly rent. The office space is located in Paradigm Rajapushpa and spans across 18 floors. The building consists of five basements, a ground and 18 office floors.