Tata Projects, a prominent engineering, procurement, and construction entity within the Tata Group, has finalized a substantial lease agreement for over 1.2 lakh square feet of office space in Powai, Mumbai. According to informed sources, this strategic move aims to establish the company’s headquarters accommodating approximately 1,000 employees.

The leased space is situated within the commercial tower known as Cignus Powai, part of a project developed by Chalet Hotels under K Raheja Corp’s banner. The lease spans five years, with Tata Projects committed to paying rentals totaling nearly Rs 86 crores over the duration.

“While securing office space across two floors in this deal, the company is contemplating acquiring an additional floor to facilitate future growth and expansion plans. The lease agreement includes a three-year lock-in period and standard rental escalation clauses,” disclosed one of the aforementioned sources.

The commercial real estate landscape in India’s major urban centers is undergoing significant transformation, driven by evolving corporate requirements, rapid infrastructure development, and shifting workplace dynamics. Recent lease transactions indicate the emergence of new commercial hubs attracting businesses and investors alike.

Gautam Saraf, Managing Director – Mumbai at Cushman & Wakefield, commented, “India’s commercial property market is witnessing a shift towards newer, high-quality assets offered by established developers and institutional landlords. These assets provide amenities conducive to fostering a healthy work-life balance for employees. With declining vacancies and a growing premium on Grade A properties, this trend is poised to intensify.”

Notably, Powai has long been a favored location for corporate giants like Larsen & Toubro (L&T) and Tata Consultancy Services (TCS), alongside a presence of multinational corporations including Accenture, Nomura, JPMorgan Chase, and Cognizant, bolstering its reputation as a pivotal business destination.

Email queries directed to Tata Projects and K Raheja Corp by ET remained unanswered at the time of reporting.

The completion of the project is anticipated by the end of June, with Tata Projects scheduled to transition into the new premises by the third quarter of the year. Presently, the company operates from an office located within Powai.

Cignus Powai, a solitary commercial tower spanning 7.5 lakh square feet across 16 floors, is positioned adjacent to The Westin Mumbai Powai Lake, and Marriott Executive Apartments. This tower is part of a larger mixed-use development orchestrated by Chalet Hotels under the commercial arm of K Raheja Corp.

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