BENGALURU: Tata Consultancy Services(TCS) has expanded its office footprint in Chennai to approximately 7.79 lakh sq ft with a fresh lease of 1.47 lakh sq ft at Ozone Techno Park, reinforcing the city’s position as a key hub in the company’s India delivery network.
The new lease, signed with Platinum Holdings Private Limited, covers space across the fourth and fifth floors of the IT park on Old Mahabalipuram Road (OMR). According to Propstack data, the agreement will commence on October 1, 2025, for a tenure of 53 months at a rental of Rs 45 per sq ft per month, translating into a monthly outflow of about Rs 66.2 lakh.
With this addition, TCS’s total rental commitment at the campus has risen to nearly Rs 3.5 crore per month. The lease includes a security deposit of Rs 5.96 crore along with a 12% escalation every three years. It also provides long-term flexibility, with options to renew for two additional five-year terms, potentially extending occupancy until March 2040, it mentioned.
The expansion highlights Chennai‘s growing importance in TCS’s real estate and operational strategy, particularly as the company continues to scale delivery capabilities in established IT corridors. Industry sources indicate that TCS has been steadily consolidating its presence in key markets, aligning workplace investments with evolving delivery models and workforce requirements.
“In recent quarters, TCS has been recalibrating its real estate portfolio, balancing return-to-office momentum with hybrid work strategies. At the same time, it is selectively expanding in cities like Chennai where talent availability, infrastructure, and cost efficiencies converge,” said a source familiar with the development.
Chennai’s office markdynamics further support this strategy. The city, with an existing stock of nearly 90 million sq ft, is expected to cross the 100 million sq ft milestone by 2026, driven by sustained demand from global capability centers (GCCs), IT/ITeS firms, and engineering services players. OMR continues to dominate leasing activity, emerging as a preferred destination for large occupiers due to its established ecosystem and relatively competitive rentals.
Experts says that such expansions by large IT firms signal a steady revival in demand for Grade A office assets. “We are witnessing a clear trend of occupiers scaling up in core markets like Chennai, with a focus on high-quality, future-ready workspaces. Large, long-tenure leases by firms like TCS underline continued confidence in the market,” an industry expert said.
TCS’s latest transaction also reflects a broader trend among leading IT services companies that are reinforcing their presence in core delivery hubs despite global macroeconomic uncertainties. As technology spending gradually stabilizes, firms are prioritizing scalable campuses and long-term leases to support growth while maintaining operational flexibility.
Overall, the deal not only strengthens TCS’s footprint in Chennai but also underscores the city’s rising prominence in India’s evolving office real estate landscape.
