IBM India leases 2.83 lakh sq ft office space in Bengaluru for 10 years

MUMBAI: Global technology and consulting major IBM’s India subsidiary has leased over 2.83 lakh sq ft of office space at Radon tower in Bagmane Solarium City, an IT park in Bengaluru, for 10 years, with the total rental and fit-out outgo estimated at Rs 522 crore over the tenure.

IBM India has entered into a lease agreement with Bagmane Group company Akruthi Infra-Build Developers for premises spanning the ground floor and three upper floors of the building. The transaction adds to the large-office leasing activity by multinational companies in Bengaluru, one of India’s key technology and office markets.

The company will pay a monthly base rent of Rs 2.49 crore, at a rate of Rs 88 per sq ft, translating into a total rental outgo of around Rs 343 crore over the lease tenure, according to registration documents accessed through realty data analytics platform Propstack.


The lease provides for a 15% escalation in rent every three years, a standard feature of long-term commercial office leases that allows rentals to increase over the contract period. IBM India has also paid a security deposit of Rs 14.96 crore for the premises.

In addition to the base rent, the company will pay fit-out rent of Rs 2.98 crore per month for five years, until March 2031. The total fit-out rent over this period will amount to around Rs 179 crore. Fit-out arrangements typically cover the cost of preparing and equipping office premises for occupation, although the specific terms depend on the agreement between the landlord and tenant.

The combined base rental and fit-out outgo of Rs 522 crore reflects the scale of the commitment involved in securing and occupying a large office facility over an extended period.

ET’s separate email queries to IBM India and Bagmane Group remained unanswered until the time of going to press.

Bengaluru continues to be a key market for office leasing, supported by demand from technology companies, global capability centres (GCCs) and other multinational occupiers.

The city has attracted companies seeking large office facilities to accommodate their workforce and consolidate operations, while established business parks provide access to office infrastructure and supporting amenities.

Long-term leases of this scale also provide landlords with visibility on rental income, while allowing occupiers to secure office space for their operational requirements over an extended period.