Technology giant IBM has signed lease agreements for 500,000 square feet (sq ft) of office space in a special economic zone (SEZ) in Bengaluru, even as the work-from-home model has become the mainstay for many companies since the Covid-19 outbreak.
The US-based company will pay a base rent of ₹52 per sq ft with a 15-year lock-in period for the upcoming project.
“The developer will be doing the fit outs for IBM, which plans to use the space in Bhartiya City to consolidate its operation in Bengaluru,” said two people aware of the deal.
Bhartiya City is an integrated business park with 3 million sq ft of office development. The project comprises a SEZ and non-SEZ portions too. Bhartiya City has already leased 1.5 million sq ft to large technology firms.
“IBM is also in talks with the builder for an additional 200,000 sq ft in the non-SEZ portion,” said one of the people.
In 2020, IBM had renewed 6,25,000 sq ft of office space in Manyata Tech Park. IBM did not respond to ET’s email till press time Friday.