TCS Seals ₹2,130-Crore Bengaluru Lease, One of City’s Biggest Office Deals

Tata Consultancy Services (TCS) has entered into one of Bengaluru’s largest commercial office space deals by securing a 15-year lease for ₹2,130 crore at Electronic City. With an area spanning over 1.4 million sq ft across Towers 5A and 5B in the 360 Business Park, the deal becomes a landmark in the city’s tech corridor.

The lease agreement, inked with Labzone Electronics City Pvt Ltd, will see TCS paying a monthly rent of ₹9.31 crore at ₹66.5 per sq ft. The company has also deposited ₹112 crore as security. The deal includes a rent escalation of 12% every three years, pushing the total rental outflow to over ₹2,130 crore across the 15-year term.

According to documents, the lease will roll out in phases. Phase 1 (ground plus seven floors) begins April 1, 2026, followed by Phase 2 (8th to 13th floors) on August 1, 2026. Together, these will add more than 1.4 million sq ft of Grade-A workspace for India’s largest IT services exporter.

Industry experts say the TCS deal underscores the resurgence of large-format transactions in the tech sector. “Third-party IT services made a strong comeback in H1 2025, with transaction volumes jumping 189% year-on-year. Large office leases like this show renewed expansion confidence,” said Vivek Rathi, National Director-Research, Knight Frank India.

The deal comes amid other big-ticket occupier moves. Google recently opened its 1.6 million sq ft Ananta campus in Mahadevapura, while Morgan Stanley leased 1 million sq ft in Mumbai. Analysts note that Bengaluru’s office market is seeing a sharp rise in deal sizes, with the top 10 leases accounting for nearly half of all transactions in the first half of 2025.

However, the signing coincides with TCS’ announcement to cut 2% of its workforce in FY26, amounting to over 12,000 employees. Experts believe IT sector layoffs could trigger a moderation in Bengaluru’s overheated housing and rental market, especially in hubs like Whitefield and Electronic City.

TCS has been steadily expanding office space across India. In March, it leased 6.3 lakh sq ft in Chennai’s Ozone Techno Park, followed by 10.18 lakh sq ft in Hyderabad’s Paradigm Rajapushpa in April.