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Tata Consultancy Services has picked up nearly 1.9 million square feet of office space in Mumbai developer Hiranandani’s commercial project in Thane.
TCS has inked a 15-year lease deal with a reset clause that will set in every three years. The monthly lease rental for the space is between Rs 50 and Rs 55 per sq ft and that the annual lease rental for the property will be to the tune of Rs 100-120 crore.
Market sources indicated that TCS will hold a soft option to extend the lease by another 2 million sq ft.
Hiranandani Constructions hopes to deliver the office in the next year and-a-half. TCS is likely to house about 30,000 its employees in this office.
TCS has 19 offices in Mumbai and the surrounding areas, including its headquarters, and 10 delivery centres in Mumbai and Thane.
When contacted, Niranjan Hiranandani, CMD, Hiranandani Developers, said, "We have leased space to TCS on a long lease for setting up an IT park. Work has already started and it will take nearly 18 months to complete it.”
Earlier this month, e-commerce major Amazon and IT major Cisco had taken up over 30,000 sq feet and 50,000 office space, respectively on lease at Radius Developer owned OneBKC.
According to a report, absorption of Grade-A office space across key cities in India witnessed a quarterly growth of approximately 26 per cent during the October-December period — translating to more than 12 million sq. ft. of leased office space.
Axis Bank too recently picked up 200,000 sq ft of space at The Ruby office complex in the Dadar West area. Last year, pharmaceutical major Abbott had bought 435,000 sq ft in Godrej BKC at Bandra Kurla Complex from Godrej Properties for Rs 1,479 crore.
According a report by Cushman and Wakefield, the net absorption of office space stood at 33.5 msf across top eight cities.
Of the total net absorption, Bengaluru contributed the highest at 10.3 msf followed by Pune at 6.3 msf and Hyderabad at 5.5 msf. Leasing activities during 2015 recorded a 15 per cent increase over 2014 on the back of increased confidence brought about by steady economic growth and renewed corporate confidence especially in the IT-ITES and e-commerce sectors.
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