IBM, the technology and consulting company headquartered in Armonk, New York, has leased 283,321 square feet of office space in Bengaluru, in southern India, for ten years, The Economic Times reported. IBM India, the company’s subsidiary, signed the lease.
The space covers the ground floor and three upper floors of Radon Tower in Bagmane Solarium City, an IT park in Bengaluru. The landlord is a company of Bagmane Group, a real estate developer based in Bengaluru.
IBM will pay base rent of 93 cents a square foot each month at current exchange rates. Base rent over the ten years comes to $36 million. Rent rises 15% every three years. IBM will also pay fit-out rent for five years, until March 2031, which adds $19 million. Base rent and fit-out together come to $55 million.
The lease follows another one earlier this year. IBM took 230,000 square feet at Tata Realty and Infrastructure’s Intellion Park in Gurugram, in northern India. The same report cites a Colliers India report showing that Bengaluru leased 5.2 million square feet of office space in the third quarter, up 11% from a year earlier, and that the city continues to lead office demand in India.
