BNP Paribas leases 5 lakh sq ft office in Mindspace REIT’s Chennai complex

MUMBAI: French banking major BNP Paribas has picked up around half a million sq ft of office space at Mindspace Business Parks REIT-owned One Radial commercial complex in Chennai through a long-term lease spanning 10 years, in one of the city’s largest office leasing transactions this year.

The transaction covers four floors at the complex, which has an overall campus size of around 2.6 million sq ft. Office rentals in the micro-market are currently estimated at Rs 90 per sq ft per month, with the BNP Paribas deal understood to be in a similar range, according to people familiar with the transaction.

Based on these rentals, the bank’s total rental payout over the 10-year lease period is estimated at around Rs 550 crore, excluding rental escalations and any applicable rent-free periods, incentives or additional charges.

The deal is part of the bank’s consolidation of its Chennai operations, where it previously operated from several smaller offices. Chennai is its second-largest office market in India in terms of space occupied, after Mumbai, where the bank has offices in Bandra-Kurla Complex and Navi Mumbai.

The transaction comes amid sustained demand for large office spaces from multinational companies setting up or expanding their GCCs in India. Banking and financial services companies are among the occupiers using these centres for technology, analytics, risk management, operations and other specialised functions.

Chennai has emerged as an alternative to Bengaluru, Hyderabad and Pune for companies seeking to manage operating costs while accessing a large talent pool. The city offers relatively lower costs for residential accommodation and talent, while employee attrition is also perceived to be lower than in some competing markets, according to industry experts.

Infrastructure development is expected to further support the city’s appeal among office occupiers. Upcoming phases of Chennai Metro are expected to improve connectivity across employment hubs and residential catchments, while planned transportation upgrades could strengthen access to workplaces over the next few years.

ET’s email queries to BNP Paribas and MIndspace Business Parks REIT remained unanswered until the time of going to press.

India’s office property market has remained resilient, supported by demand from GCCs, technology companies and banking and financial services occupiers. The country recorded around 66 million sq ft of office absorption during January-September 2026, up 8% year-on-year, with GCCs accounting for around 42% of the total, showed a recent industry study. Multinational companies are increasingly using their Indian operations for technology, analytics, research and other specialised functions, underpinning demand for institutional-grade office space and long-term leases.

For office landlords, large transactions by multinational occupiers provide longer-term rental visibility. Chennai’s combination of relatively competitive operating costs, talent availability and improving infrastructure is expected to remain an important consideration for companies evaluating expansion or consolidation in the city.