In a significant move in India’s commercial real estate sector, Google IT Services India has renewed its lease for a substantial office space in Bengaluru. The tech giant has committed to an annual rent of ₹90 crore for 8.7 lakh sq ft of prime office space in the Kyoto West and East Towers at Bagmane Capital Business Park, situated in the bustling Doddanekkundi area of East Bengaluru. This five-year agreement reinforces Google’s continued presence and growth in one of India’s key IT hubs.
The lease renewal, signed in April, follows Google’s earlier lease agreement under the entity Google Connect Services India Pvt Ltd and now extends its footprint through its affiliate, Google IT Services India. This move reflects the ongoing demand for quality office spaces in Bengaluru’s thriving business districts.
Key Details of the Lease Renewal
Lease Agreement Overview
- Total Space: 8.7 lakh sq ft
- Location: Kyoto West and East Towers, Bagmane Capital Business Park, Doddanekkundi, Bengaluru
- Annual Rent: ₹90 crore
- Lease Term: 5 years
- Commencement Date: November 25, 2024
First Lease Agreement
- Size: 4.5 lakh sq ft
- Monthly Rent: ₹3.9 crore
- Rate per sq ft: ₹86.2 per month
- Security Deposit: ₹20.3 crore
- Car Parking Slots: 537
- Rent Escalation: 15% after 1 year, 15% after 3 years
Second Lease Agreement
- Size: 4.2 lakh sq ft
- Monthly Rent: ₹3.6 crore
- Rate per sq ft: ₹86.2 per month
- Security Deposit: ₹18.1 crore
- Car Parking Slots: 602
- Rent Escalation: 15% after 1 year, 15% after 3 years
Landlord: Bagmane Constructions Pvt Ltd
These new leases demonstrate Google’s continued investment in India’s growing office space market, underlining the importance of Bengaluru as a key location for their operations. The lease renewal also follows a series of similar actions by Google, solidifying its presence in major commercial hubs like Mumbai and Hyderabad.
Google’s Real Estate Footprint in India
This lease renewal is only one part of a broader strategy by Google to expand its real estate footprint across India. Google’s recent inauguration of its 1.6 million sq ft Ananta campus in Mahadevapura, Bengaluru, marks one of its largest global office projects. Located in Mahadevapura, the Ananta campus is touted as Google’s largest office space in India.
Moreover, Google has also committed to significant lease agreements in other key cities. Earlier this year, Google India Private Limited and Google Cloud India Private Limited renewed office leases in Mumbai’s Bandra-Kurla Complex for ₹304 crore over five years. Additionally, the company extended its lease for a 3.7 lakh sq ft office in Hyderabad last year for ₹2 crore per month.
Summary Table of Key Facts
| Factor | First Lease | Second Lease |
|---|---|---|
| Space Leased | 4.5 lakh sq ft | 4.2 lakh sq ft |
| Monthly Rent | ₹3.9 crore | ₹3.6 crore |
| Rent per sq ft | ₹86.2 per month | ₹86.2 per month |
| Security Deposit | ₹20.3 crore | ₹18.1 crore |
| Parking Slots | 537 | 602 |
| Rent Escalation | 15% after 1 year, 15% after 3 years | 15% after 1 year, 15% after 3 years |
Quotes from Officials
According to Propstack’s findings, Google’s lease renewal marks a significant milestone for both the company and the Indian commercial real estate sector. As one of the largest players in India’s IT industry, Google continues to enhance its footprint, fueling demand for office spaces across key metros.
Frequently Asked Questions (FAQ)
1. What is the total office space leased by Google in Bengaluru?
- Google has leased a total of 8.7 lakh sq ft of office space in the Kyoto West and East Towers, located at Bagmane Capital Business Park in East Bengaluru.
2. What is the annual rent Google has committed to for this lease?
- Google has committed to an annual rent of ₹90 crore for the office space.
3. When does the lease agreement commence, and how long is the term?
- The lease begins on November 25, 2024, and spans five years.
4. What are the rent escalation terms for the lease?
- The lease includes a 15% rent escalation after the first year and another 15% increase after the third year.
5. Who is the landlord for Google’s leased office spaces in Bengaluru?
- The landlord for both the Kyoto West and East Towers is Bagmane Constructions Pvt Ltd.