TCS expands Bengaluru hub with record lease deal

TCS Inks ₹2,130 Cr, 15-Year Mega Lease for 1.4 Million Sq Ft in Bengaluru’s Electronic City.                                                                                                                   

Tata Consultancy Services (TCS) has signed a landmark lease for 1.4 million sq ft of office space in Bengaluru’s Electronic City, valued at ₹2,130 crore over 15 years. The deal, among the city’s largest commercial real estate transactions, covers Towers 5A and 5B at 360 Business Park, leased from Labzone Electronics City Pvt Ltd. TCS will pay a consolidated monthly rent of ₹9.31 crore, with a 12% escalation every three years, and has deposited ₹112 crore as security. Phase 1 of the lease starts in April 2026, and Phase 2 in August 2026, creating a Grade-A workspace for the IT services giant. The move comes amid a rebound in Bengaluru’s office market, with large-format deals driving expansion demand. However, TCS’s plans to cut 12,000 jobs in FY26 have raised concerns over the real estate sector’s stability, even as the firm continues consolidating space across Hyderabad, Chennai, and Bengaluru.