Bengaluru Sees Apple's New 2.7 Lakh Sq Ft Office Lease Amid Expansion Plans

Apple India Private Limited has secured a 10-year lease for a substantial office space in Bengaluru, covering 2.7 lakh square feet. This real estate deal, valued at Rs 1,010 crore, signifies a significant expansion for Apple in India. The new office will be situated in Embassy Zenith on Sankey Road, Vasanth Nagar, and is poised to become Apple's largest office in India's tech hub.

According to Business Standard, the lease agreement involves occupying the 5th to 13th floors of the building. The carpet area spans 196,179 sq ft, with an additional chargeable area bringing it to 268,737 sq ft. The monthly rent is set at Rs 6.315 crore, translating to Rs 235 per square foot. An annual escalation clause of 4.5% ensures a gradual rent increase over the decade-long term.

Apple's Expansion Strategy in India

Apple aims to nearly double its presence within the same building by leasing additional floors from ground to fourth. This would add another 121,203 sq ft to their space. If successful, Apple's total office space in Embassy Zenith would approach 4 lakh sq ft. This aligns with Apple's broader strategy of expanding its footprint in India.

The company is also focusing on increasing local production and opening new retail stores across the country. In 2023, Apple launched its first two flagship retail stores in Mumbai and Delhi and plans four more stores in Bengaluru and Pune.

Bengaluru Office Lease Details

The lease includes common area maintenance fees and car parking charges within the total outlay of Rs 1,010 crore. Mac Charles (India) Limited, affiliated with the Embassy Group, owns the building. To secure this agreement, Apple paid a security deposit of Rs 31.57 crore.

This new lease follows Apple's previous agreement for a 1.16 lakh sq ft space at Prestige Minsk Square in central Bengaluru in 2021. Operations there commenced in 2023.

Additionally, Apple has acquired retail spaces at Oberoi Sky City Mall in Borivali, Mumbai and Batrayanpura, Bengaluru as part of its expansion efforts.