JP Morgan Services (India) Pvt Ltd, a prominent global financial services firm, has made a significant move by leasing 5.59 lakh sq ft of office space in Bengaluru. The leased space is situated at Embassy Tech Village in Kadabeesanahalli, one of the city’s key technology hubs, and is expected to bolster the company’s presence in the region.
Details of the Lease Agreement
According to documents accessed by data analytical firm Propstack, JP Morgan Services has secured the office space for a monthly rent of Rs 4.4 crore. The office space, spanning the first 10 floors, boasts a carpet area of 4.3 lakh sq ft. The rental rate is set at Rs 80 per sq ft per month, making it a significant investment for JP Morgan Services in India’s tech capital.
The lease agreement includes a substantial security deposit of Rs 26.8 crore, highlighting the scale and commitment of this corporate deal. The lease period is set for 86 months, with provisions for rent escalation. In November 2027, the monthly rent will be increased by 15% to Rs 92 per sq ft, and from November 2030 onwards, the rent will rise to Rs 106 per sq ft per month.
Landlord and Property Details
The landlord in this transaction is Vikas Telecom Private Limited, part of the Embassy Group. Vikas Telecom owns a considerable portfolio, including 6.2 million sq ft of completed office property, approximately 1.9 million sq ft of under-construction area, and plans for 518 hotel keys at Embassy Tech Village. This makes the Embassy Tech Village a significant player in Bengaluru’s commercial real estate market.
Major Office Space Transactions in Bengaluru
The JP Morgan lease is part of a trend of major office space transactions in Bengaluru, highlighting the city’s importance as a global business hub. In a recent notable deal, Embassy Group-managed Embassy REIT signed an agreement with the Commonwealth Bank of Australia (CBA) to lease 8 lakh sq ft of office space in Embassy Manyata, with an option to expand by an additional 6 lakh sq ft. This space is set to be a comprehensive built-to-suit solution, with completion expected in the fourth quarter of 2026.
Additionally, in July, Samsung R&D Institute India-Bangalore Pvt Ltd renewed its property lease at Bagmane World Technology Centre. The lease covers a 4.2 lakh sq ft property in the Bagmane Goldstone building and commands a monthly rent of Rs 4.3 crore for a lease period of 60 months.
Conclusion
These significant leasing activities reflect the robust demand for high-quality office space in Bengaluru, driven by global corporations seeking to expand their operations. The city’s strategic location, robust infrastructure, and thriving business environment continue to attract major international players, cementing its status as a leading global technology and business hub.
