Tata Consultancy Services (TCS) has leased 1.4 million sq ft in Bengaluru’s Electronic City for 15 years, marking one of the city’s largest commercial real estate deals.
IT giant Tata Consultancy Services (TCS) has signed one of Bengaluru’s largest commercial real estate deals, leasing 1.4 million square feet of office space for 15 years at Rs 2,130 crore, Propstack documents show. The office space is spread across Towers 5A and 5B in 360 Business Park, located in Electronic City’s southern IT corridor. The lease comprises 680,000 sq ft in Tower 5A and 720,000 sq ft in Tower 5B. It includes a monthly rent of Rs 9.31 crore at a rate of ₹66.5 per sq ft. TCS has also provided a security deposit of Rs 112 crore, the documents show.
According to the documents, the lease is signed for 15 years with Labzone Electronics City Private Limited, the developer of the property, with a 12% rental escalation every three years. The total rent outflow over the lease term is estimated at approximately Rs 2,130 crore.
Earlier this year, Google opened its Anant campus in Bengaluru, a 1.6 million sq ft facility, which is also India’s largest office in Mahadevapura. In 2024, Morgan Stanley leased 1 million sq ft of space in Mumbai for nine years at an initial rent of Rs 15.96 crore monthly. Against this backdrop, the TCS deal is one of the largest commercial real estate transactions Bengaluru has seen in recent years, experts said.
“Third-party IT services made a strong comeback in the first half of 2025, with transaction volumes increasing by 189% compared to the first half of 2024. This segment was driven by large-format deals, reflecting renewed confidence in the technology sector,” said Vivek Rathi, national director-research, Knight Frank India.
Experts said Bengaluru’s office market witnessed some large deals by third-party IT services in the first half of 2025, indicating a strong resurgence in expansion-led demand. “One of the defining trends in Bengaluru’s overall office market is the increase in average deal size, with the top 10 transactions accounting for nearly 50% of the total leasing,” Rathi said.
According to the documents, the TCS lease will commence in two phases. Phase 1, comprising the ground and seven floors, will start from April 1, 2026, while Phase 2, comprising the 8th to 13th floors, will start from August 1, 2026. Both towers together add over 1.4 million sq ft of Grade-A workspace to the IT services giant. TCS and Labzone Electronics City did not offer any comments.
TCS Layoffs and Their Real Estate Impact
TCS’s announcement of plans to reduce its workforce by 2% in FY26, impacting over 12,000 employees, has sparked concerns about its implications for India’s property market. Housing costs in Bengaluru, the country’s technology capital, have skyrocketed in recent years, especially in hubs like Whitefield, Bellandur, and Electronic City. But the wave of layoffs in the IT sector is now fueling speculation that a correction in rents and capital values may be on the horizon, real estate experts say.
Previous Office Leases by TCS
In March, TCS leased 630,000 sq ft of office space in Chennai’s Ozone Techno Park for a monthly rent of Rs 2.8 crore. This lease in Navalur is spread across seven floors, with the lease commencing on March 15, 2025, documents show.
Prior to this, in April, TCS leased 1.018 million sq ft of office space in Hyderabad’s financial district for a monthly rent of Rs 4.3 crore. The office space is located in Paradigm Rajapushpa and is spread across 18 floors. The building comprises five basements, a ground floor, and 18 office floors.