Tata Consultancy Services (TCS), India’s leading IT services company, has signed one of the largest commercial real estate deals in Bengaluru, securing 1.4 million sq ft of office space at 360 Business Park in the southern IT hub of Electronic City. The lease, valued at ₹2,130 crore over 15 years, represents a significant development in the city’s office real estate sector, reflecting strong demand from technology occupiers.
The office space spans Towers 5A and 5B, with 6.8 lakh sq ft in Tower 5A and 7.2 lakh sq ft in Tower 5B. The consolidated monthly rent stands at ₹9.31 crore, translating to ₹66.5 per sq ft, with TCS providing a security deposit of ₹112 crore. The lease agreement has been executed with Labzone Electronics City Pvt Ltd, the property developer, and includes a 12% rent escalation every three years, bringing the total rental outflow over the lease term to approximately ₹2,130 crore.
The lease is structured in two phases. Phase 1, covering the ground plus seven floors, is scheduled to commence from 1 April 2026, while Phase 2, comprising floors eight to thirteen, will begin on 1 August 2026. Upon completion, the towers will provide TCS with over 1.4 million sq ft of Grade-A workspace, reinforcing its position in Bengaluru, one of India’s most prominent IT hubs.
This transaction comes amid a broader trend in Bengaluru’s office market. According to Knight Frank India, the third-party IT services sector experienced a strong comeback in H1 2025, with transaction volumes rising 189% compared to H1 2024. Large-format deals, such as TCS’s lease, accounted for nearly 50% of total leasing activity, signaling renewed confidence among tech occupiers in long-term office investments.
TCS’s lease follows other major moves by the company in recent months. In March 2025, TCS leased 6.3 lakh sq ft in Chennai’s Ozone Techno Park for ₹2.8 crore monthly rent. In April 2025, the company secured 10.18 lakh sq ft in Hyderabad’s financial district at Paradigm Rajapushpa, covering 18 office floors, including five basements, with a monthly rent of ₹4.3 crore. These expansions reflect TCS’s strategic growth across key Indian IT hubs, balancing operational capacity with client and workforce demands.
Industry experts noted that Bengaluru’s office market remains robust despite announcements of workforce reductions. TCS recently stated plans to trim its workforce by 2% in FY26, affecting over 12,000 employees. While this has prompted speculation about potential corrections in office rentals and capital values, experts emphasize that large-scale, long-term leases like TCS’s deal indicate sustained demand from top-tier IT firms.
The Electronic City submarket continues to be a focal point for major occupiers due to its established infrastructure, connectivity, and proximity to talent pools. With TCS’s lease and similar deals, Bengaluru’s office market is witnessing a consolidation of Grade-A leasing activity, reinforcing investor confidence and rental growth in prime business districts.
Analysts anticipate that TCS’s lease will have a catalytic effect on the city’s office leasing landscape, encouraging other tech occupiers to consider large-format expansions. The deal underlines Bengaluru’s role as a key technology and commercial hub, attracting domestic and global IT companies to invest in long-term office infrastructure.
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