Tata Consultancy Services (TCS) has finalised one of the largest commercial real estate deals in Bengaluru, securing 1.4 million sq ft of Grade-A office space in Electronic City for Rs 21.3 billion over 15 years, according to documents accessed by Propstack. The leased space spans Towers 5A and 5B at 360 Business Park, with 680,000 sq ft in Tower 5A and 720,000 sq ft in Tower 5B. The agreement entails a consolidated monthly rent of Rs 93.1 million at Rs 66.5 per sq ft, alongside a security deposit of Rs 1.12 billion.

The lease, signed with developer Labzone Electronics City Pvt Ltd, includes a rent escalation clause of 12 per cent every three years. Phase 1 of the lease, covering the ground to seventh floors, begins on 1 April 2026, while Phase 2, spanning the eighth to thirteenth floors, commences on 1 August 2026.

This transaction comes amid a strong rebound in third-party IT services, with Knight Frank India reporting a 189 per cent increase in transaction volumes in the first half of 2025 compared to the same period in 2024. The surge in average deal size has been a defining trend, with the top ten deals accounting for nearly half of all leasing activity in Bengaluru.

The TCS deal follows Google’s 1.6 million sq ft Ananta campus in Mahadevapura and Morgan Stanley’s 1 million sq ft lease in Mumbai earlier this year. Despite TCS’s plans to reduce its workforce by 2 per cent (over 12,000 employees) in FY26, experts believe the company’s continued investment in large-format office space indicates long-term growth confidence.

In March, TCS leased 630,000 sq ft in Chennai’s Ozone Techno Park at a monthly rent of Rs 28 million, and in April, secured 1.018 million sq ft in Paradigm Rajapushpa, Hyderabad, for Rs 43 million per month.

While housing prices in Bengaluru’s IT corridors like Whitefield, Bellandur, and Electronic City have soared, the ongoing wave of IT sector layoffs has sparked speculation of a potential market correction. Nonetheless, TCS’s leasing spree highlights sustained appetite for premium office real estate, underscoring Bengaluru’s role as India’s tech and innovation capital.