Dow Chemicals International has secured over 2.56 lakh sq ft of office space in an IT park located in Navi Mumbai’s Airoli area via a long-term lease lasting over 10 years. This transaction is one of the largest in the city’s IT and business park sector.
The US-based chemical giant has leased five floors (from the 2nd to the 6th) in one of the towers of the Mindspace Special Economic Zone, owned by Mindspace Business Parks. Total rental costs across the lease term are projected to be around Rs 250 crore.
The lease, effective from September 15, will see Dow Chemical pay a monthly rent of Rs 1.64 crore, amounting to Rs 64 per sq ft on the usable area. Moreover, there is a clause for a 5% annual rental increase, along with a security deposit of Rs 14.77 crore.
Additionally, the agreement includes a fit-out security deposit of Rs 82.09 crore, which will be returned in annual installments of 10%. The fit-out rent is set at Rs 29.45 per sq ft per month without any escalation throughout the lease term, as per documents from realty data analytics firm Propstack.
This transaction emphasizes the resilience of the commercial office market in the Mumbai Metropolitan Region (MMR), especially for large-format, high-quality spaces that cater to multinational companies. As global corporations increasingly consolidate their operations in technology hubs like Navi Mumbai, such transactions signify an enduring demand even in a hybrid work environment.
Experts in the industry indicate that these high-value, long-term leases in established business parks reflect occupants’ confidence in India’s medium- to long-term growth outlook and their commitment to expanding local operations.
Emails sent to Dow Chemical and Mindspace Business Parks for comment went unanswered.
Last financial year, India’s commercial office market reached remarkable heights, with leasing activity hitting an all-time high. This surge was fueled by expansion plans from both global and Indian businesses, as well as a growing preference for high-quality, well-connected office spaces in major business hubs.
The positive momentum is anticipated to continue into 2026, driven by strong demand from sectors like global capability centres (GCCs), banking, financial services, insurance (BFSI), flexible workspace operators, and leading Indian technology firms. These industries are responsible for the majority of new leases and renewals, bolstered by India’s cost effectiveness, skilled workforce, and robust digital infrastructure.
