IBM India Private Ltd has leased 830,000 square feet of office space in Bengaluru for 10 years. The starting monthly rent is Rs.140 per square foot, as reported by Propstack, a real estate data analytics platform.
The lease, which begins in January 2025, includes an initial rent-free period of six months. Additionally, the agreement requires a security deposit equivalent to six months' rent.
According to the documents, the leased space spans multiple floors across Blocks A, C, and D of Embassy GolfLinks Business Park in Domlur. The buildings involved are named Cypress Point, Pacific Dunes, and Peach Tree.
The lease agreement specifies that rent will escalate by 12% to Rs.156 per square foot after 5 years, and will increase by an additional 15% to Rs.180 per square foot after 8 years, according to the documents.
According to the documents, there will be a rent increase of Rs.679.00 per car parking slot from January 2025- December 2029. This rental charge will further escalate to Rs.5,206.70 in the subsequent five-year period for each individual slot designated for vehicle parking purposes.
As per the stated conditions in the agreement, maintenance charges at a fixed rate of Rs.21 for every square foot of super built-up area will be applied on a closed book basis until December 31st, 2027.
As per the documents, renewal of the lease for a further five years is possible provided specific conditions are met.
The lease agreement stipulates that both the lessee and lessor are prohibited from ending the lease for a decade. This implies that there is a mandatory lock-in period of ten years as part of the arrangement.
IBM has established its footprint in various Indian cities, such as Bengaluru, Hyderabad, Gurugram, Mumbai and Kolkata after entering the market back in 1951.
In Hyderabad's prime Gachibowli area, IBM secured 1.06 lakh square feet of office space spanning two floors in Divyasree Orion - a 26-acre campus- through a deal with real estate developer Midas Projects signed earlier this year.
As per documents obtained through Propstack, the company is obligated to pay a monthly rent of Rs.70.23 lakh as part of a five-year lease agreement that began on April 15, 2024. The terms of this contract stipulate that there will be an annual increase in rental cost by 4% after each five years.
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