IBM India Takes on 1.6 Lakh Sq Ft Office Space at Embassy Golflinks, Bengaluru

• Monthly rent pegged at around ₹2.4 crore at ₹150 per sq ft

• Five-year lease with a three-year lock-in and 45-day rent-free fit-out period

• Deal includes 216 parking slots and a security deposit of ₹14.5 crore

Bengaluru: IBM India Private Limited has strengthened its footprint in Bengaluru by leasing a large office space measuring over 1.61 lakh square feet at Embassy Golflinks Business Park, one of the city’s most prominent commercial developments. The transaction, valued at a monthly rental of approximately ₹2.4 crore, highlights sustained corporate demand for Grade-A office spaces in Bengaluru’s established business districts.

According to documents accessed through real estate data analytics platform CRE Matrix, the lease agreement has been signed with Golflinks Software Park Private Limited for a period of five years. The premises are located across the third and fourth floors of the Pine Valley block within Embassy Golflinks Business Park, situated in Challaghatta, Varthur Hobli.

The lease deed indicates that the handover date for the premises is April 17, 2025. As part of the agreement, IBM India has been granted a rent-free fit-out period of 45 days, allowing the company to customise the workspace before commencing full operations. The contract also includes a lock-in period of three years, providing stability for both tenant and landlord.

Rental Terms and Financial Details

The agreed rental rate for the transaction stands at ₹150 per square foot per month, translating to a total monthly outgo of nearly ₹2.4 crore. IBM India has paid a security deposit of ₹14.5 crore, and the lease was officially registered on September 23, 2025, the documents showed.

In addition to the base rent, the agreement includes specific fit-out-related costs. IBM will pay fit-out charges of ₹63.09 per square foot, along with a fit-out security deposit of approximately ₹6.12 crore, equivalent to six months of fit-out fees. These provisions are typical of large corporate leasing deals in premium office parks, where tenants invest significantly in interior customisation.

The deal also provides IBM with 216 dedicated car parking slots, with parking charges set at ₹4,526.7 per slot, according to the lease documents. Parking availability remains a critical factor for large occupiers in Bengaluru, particularly in centrally located business parks.

Embassy Golflinks Remains a Corporate Favourite

Embassy Golflinks Business Park, located near Domlur, has long been a preferred destination for multinational corporations due to its proximity to central business areas, strong social infrastructure, and integrated campus-style development. The park houses several global technology and consulting firms, making it one of the most sought-after office locations in the city.

Industry experts note that transactions of this scale reflect a broader trend of corporates opting for consolidated, high-quality office spaces as they recalibrate workplace strategies post-pandemic. Despite the rise of hybrid working models, demand for large, well-located offices remains resilient, particularly among technology-led firms.

IBM’s Continued Leasing Activity in Bengaluru

The latest lease adds to IBM India’s growing portfolio of office spaces in Bengaluru. Earlier this year, the company leased around 1.1 lakh square feet of office space from Table Space at DivyaSree Greens, a custom-built campus located on the Inner Ring Road, sources familiar with the transaction said.

In August last year, IBM India had executed one of its largest office leasing deals in the city, taking on 8.3 lakh square feet of space at Embassy GolfLinks Business Park for a period of 10 years, according to documents accessed via Propstack. That deal covered multiple floors across Blocks A, C, and D—namely Cypress Point, Pacific Dunes, and Peach Tree.

Under that agreement, the starting rent was fixed at ₹140 per square foot per month, with a structured escalation clause. The rent is set to increase by 12% after five years to ₹156 per square foot and further by 15% after eight years, reaching ₹180 per square foot.

In another transaction in June last year, IBM entered into a deal with Midas Projects for 1.06 lakh square feet of office space across two floors at Divyasree Orion. That five-year agreement included an annual rent escalation of 5%, starting at ₹66 per square foot per month, with first-year rentals amounting to ₹70.23 lakh.

Outlook for Bengaluru Office Market

IBM’s continued leasing activity underscores Bengaluru’s position as India’s leading technology and office market. With global capability centres and IT majors expanding cautiously but steadily, premium office hubs like Embassy Golflinks continue to attract long-term occupiers.

Queries have been sent to IBM India and the Embassy Group seeking comments on the latest transaction. The story will be updated if responses are received.