LTI Mindtree is expanding its footprint by another 600,000 sq ft in L&T Innovation Campus, Chennai, doubling its size as return-to-work momentum grows, according to sources familiar with the development.
With this expansion, LTIM will occupy close to 1.2 million Sq ft (2 towers) i n L&T Innovation Campus, Chennai.
The new campus, a full tower, can accommodate up to 10,000 IT professionals.
“LTI Mindtree will occupy the first tower of 600,000 sq ft from April 2024, while the remainder will be occupied by November 2024,” said one of the individuals quoted above. “The rental for the two towers will be Rs 150 crore,” the source added.
In 2023, technology firms LTI Mindtree and L&T Technology Services (LTTS) consolidated their real estate portfolio across Chennai amidst cost-cutting and hybrid work models implemented across sectors.
LTI Mindtree has relinquished 600,000 sq ft across two IT parks in Chennai.
An email sent to LTI Mindtree did not elicit any response.
The office market in Chennai exceeded previous records and recorded more than double the leasing activity in 2023 compared to the annual average of the last four years. In 2023, the city witnessed the highest-ever office leasing, with 10.5 mn sq ft of gross absorption, placing it in the top three alongside Bengaluru and Delhi NCR, according to Colliers.
Technology and BFSI players drove leasing activity in 2023, accounting for about half of the total share. Notably, large companies such as Bank of America, Standard Chartered Bank, Qualcomm, Vestas, Hitachi Energy, and Equiniti have recently taken up IT office space.
Amidst robust demand, vacancy levels decreased significantly by 3.7 percentage points year-on-year, standing at 16.3% at the end of the year, as mentioned in the report.
