Tata Consultancy Services has renewed its lease for approximately 14.7 lakh sq ft of office space at Chennai One IT SEZ in Thoraipakkam, Chennai, for 10 years | Real Estate News
Tata Consultancy Services (TCS) has renewed its lease for approximately 14.7 lakh sq ft of office space at Chennai One IT SEZ in Thoraipakkam, Chennai, for a period of 10 years, with a total rental commitment of nearly ₹1,420 crore over the tenure, according to documents accessed by Propstack.
The office complex, owned by IG3 Infra Limited, comprises multiple floors across Block A–Alpha and Block B–Magnum. The lease renewal will take effect from November 1, 2025, the documents showed.
Under the agreement, TCS will pay a monthly rent of ₹10.26 crore at ₹70 per sq ft, translating into a rental outgo of nearly ₹1,420 crore over the 10-year term, excluding escalations. The company has also provided a security deposit of ₹94.64 crore. The lease includes a 12% rent escalation every three years.
The document notes that the parties had a prior lease agreement for the same premises spanning seven years from November 1, 2018 to October 31, 2025.
“Despite market narratives around AI-driven optimisation and potential desk disruptions, TCS’s 1.47 million sq ft renewal at Chennai One demonstrates that demand for large-scale office campuses remains resilient. Following its landmark expansions in Bengaluru (1.4 million sq ft) and Hyderabad (1.02 million sq ft), this ₹1,420-crore commitment in Chennai shows that leading technology companies continue to view physical infrastructure as critical to supporting next-generation AI and business operations at scale,” said Raja Seetharaman, Co-founder, Propstack.
A list of queries has been sent to TCS. The story will be updated if a response is received.
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The property is owned by Platinum Holdings Private Limited. TCS paid a security deposit of ₹25.5 crore and signed a 10-year lease, with a 3-year lock-in period ending on March 14, 2028. The rent was fixed at ₹45 per sq ft per month, with a 12% escalation every three years.
Last year, the company took on lease about 17.52 lakh sq ft of commercial space in Sattva Knowledge Point in Bengaluru for nearly 975 crore rent for five years, documents accessed by Propstack showed.