Tata Consultancy Services Limited (TCS) has secured a lease for approximately 17.52 lakh square feet of office space at Sattva Knowledge Point in Yeshwanthpur, Bengaluru, for a total rental commitment of nearly ₹975 crore over five years, documents accessed by Propstack indicate. The transaction is considered one of Bengaluru’s largest commercial real estate deals in 2025.
The lease encompasses three floors in Tower A and Tower B of the development. Monthly rent is reported at ₹15.37 crore, with a per square foot rate of ₹87.73. TCS has also provided a security deposit of ₹25 crore. The lease agreement includes an escalation clause of 14% every three years, along with an option to renew for an additional five-year term.
Propstack co-founder Raja Seetharaman noted that the deal underscores Bengaluru’s status as a preferred IT hub. “TCS lease at Sattva Knowledge Point stands out as one of Bengaluru’s largest, both in scale (1.75 million sq ft) and annual rental commitment. It reflects significant occupancy confidence in a premium development, even in a year marked by other large-scale tech-sector leases,” he said.
This is not the first major office lease for TCS in Bengaluru. Earlier, the company signed a 15-year lease covering 1.4 million sq ft at 360 Business Park in Electronic City, valued at ₹2,130 crore. That transaction involved two towers—Tower 5A (6.8 lakh sq ft) and Tower 5B (7.2 lakh sq ft)—with a consolidated monthly rent of ₹9.31 crore and a security deposit of ₹112 crore.
The Sattva Knowledge Point lease coincides with TCS’ plans to trim its workforce by approximately 2% in FY26, amounting to over 12,000 employees. Industry observers have highlighted potential ripple effects on India’s office real estate market, given the scale of IT-sector occupancies.
TCS has also expanded its footprint in other Indian cities this year. In March 2025, it leased 6.3 lakh sq ft at Ozone Techno Park in Chennai’s Navalur area for a monthly rent of ₹2.8 crore, spanning seven floors. In April, TCS leased 10.18 lakh sq ft in Hyderabad’s financial district at Paradigm Rajapushpa, covering 18 floors plus five basements and a ground floor, for ₹4.3 crore per month.
The Sattva Knowledge Point transaction reflects a continued trend of large-scale office leasing by IT majors in Bengaluru and other tier-1 cities, reinforcing demand for premium office space in established commercial hubs. Analysts point out that such leases are typically driven by long-term strategic requirements, including operational expansion, consolidation of teams, and infrastructure modernization.
With the Bengaluru office market witnessing multiple significant leases in 2025, industry stakeholders suggest that the city continues to attract IT companies seeking high-quality, integrated office developments. While workforce adjustments in major IT firms may create short-term uncertainty, analysts expect sustained demand for premium office space, particularly in well-connected and established locations such as Yeshwanthpur and Electronic City.
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