BENGALURU: Tata Consultancy Services (TCS) has expanded its office presence in Chennai to around 779,000 sq ft with a new lease of 147,000 sq ft at Ozone Techno Park. This move further establishes the city as a strategic hub in TCS’s delivery network across India.
The lease agreement, made with Platinum Holdings Private Limited, encompasses space on the fourth and fifth floors of the IT park located on Old Mahabalipuram Road (OMR). According to Propstack, the lease will begin on October 1, 2025, for a duration of 53 months, with a rental rate of Rs 45 per sq ft per month, resulting in a monthly payment of roughly Rs 6.62 million.
With this addition, TCS’s total rental commitment at the site has now reached approximately Rs 35 million per month. The lease includes a security deposit of Rs 59.6 million, along with a 12% escalation every three years. It also offers long-term flexibility with options to renew for two additional five-year terms, potentially extending occupancy until March 2040.
This expansion emphasizes Chennai’s growing role in TCS’s real estate strategy, particularly as the company aims to enhance its delivery capabilities in established IT sectors. Sources reveal that TCS has been strategically consolidating its presence in key markets, aligning workplace investments with changing delivery models and workforce needs.
“TCS has been recalibrating its real estate portfolio, balancing the momentum of returning to the office with hybrid work strategies. At the same time, it is selectively expanding in cities like Chennai, where talent availability, infrastructure, and cost efficiencies align,” stated a source familiar with the situation.
Chennai’s office market dynamics support this strategy, with the city boasting an existing stock of nearly 90 million sq ft, projected to surpass 100 million sq ft by 2026, fueled by ongoing demand from global capability centers (GCCs), IT/ITeS firms, and engineering services companies. OMR continues to lead leasing activity, emerging as a sought-after location for large occupiers due to its established ecosystem and competitive rental rates.
Experts suggest that expansions by major IT firms indicate a stable resurgence in demand for Grade A office spaces. “We are observing a clear trend of occupiers growing in prime markets like Chennai, focusing on high-quality, future-ready workspaces. Long-term leases signed by firms like TCS reflect enduring confidence in the market,” noted an industry expert.
TCS’s latest transaction mirrors a broader movement among leading IT service companies strengthening their presence in core delivery hubs amidst global economic uncertainties. As technology spending stabilizes, firms are prioritizing scalable campuses and long-term leases to support growth while maintaining operational flexibility.
Overall, this deal strengthens TCS’s footprint in Chennai and highlights the city’s increasing significance in India’s evolving office real estate landscape.
