Bank of America’s captive services division, BA Continuum India, has secured over 1.11 lakh sq ft of office space in the commercial tower of Chalet Hotels located in Mumbai’s Powai area through a long-term lease extending nearly 11 years, with a total rental commitment exceeding Rs 236 crore.
The lease, which spans two floors of the tower, includes a stepped escalation clause that stipulates a rent increase of 15% on October 1, 2027, and subsequently every three years.
According to the lease terms, BA Continuum will start with a monthly rent of Rs 1.43 crore, approximately Rs 129 per sq ft for a usable area of 1,11,023 sq ft. Tenants will also cover common area maintenance fees of Rs 20 per sq ft each month.
The agreement involves a security deposit of Rs 8.59 crore and includes provisions for 112 car parking spots. The lease has a lock-in clause of three years, as per documents from CRE Matrix, a real estate data analytics platform.
With the escalation structure in place, the overall rental expenditure for the entire lease duration is projected to be over Rs 236 crore, exclusive of common area maintenance costs. The lease was registered on December 24, with a term of 10 years and nine months, and both the lease and rent commencement are set for January 1.
Bank of America declined to comment, and inquiries sent to K Raheja Corp-backed Chalet Hotels have gone unanswered.
The commercial property market activity in India’s major cities has been reaching new heights since 2023, reflecting the strong growth momentum in India’s office sector.
According to JLL India, 2025 saw another record set with gross leasing volumes reaching 83.3 million sq ft for the entire year. Global firms made up a strong 58.4% share, reaffirming India’s strategic position as a business hub amid global uncertainties.
Powai has established itself as a crucial suburban office market in Mumbai, benefitting from its proximity to residential areas, availability of Grade A office buildings, and good connectivity to the eastern and western suburbs as well as the airport. This micro-market continues to attract global capability centers, tech firms, and financial services companies, even as new supply remains limited.
