Walmart has taken on lease 4.6 lakh square feet of office space in Chennai, with a monthly rental of Rs 3.26 crore, according to documents reviewed by Propstack. The retail giant has taken up approximately 4.6 lakh square feet of office space at the International Tech Park, a prominent regional business hub.
The lease agreement commenced on 1 January 2025 and spans a five-year term. Walmart will occupy four floors within the building, with a monthly rental commitment of Rs 3.26 crore. The agreement includes an annual rent escalation of 4%, while a security deposit of Rs 19.55 crore has been paid upfront. The landlord for the property is identified as Radial IT Park Private Limited.
Walmart’s decision to expand its office footprint in Chennai reflects the growing appeal of South Indian cities for commercial tenants. Over the past six years, Chennai has recorded a 20% rise in average office rents, from Rs 60 per sq ft in 2019 to Rs 75 per sq ft in 2024, according to data from Anarock. The city trails only Bengaluru and Hyderabad, which have seen rental growth of 26% and 25%, respectively. By contrast, the National Capital Region (NCR) has experienced a more modest increase of 10%.
Other high-profile transactions have further demonstrated the Southern region’s dominance in commercial leasing activity. In March, Cognizant Technology Solutions India completed the sale of its headquarters in Chennai’s Thoraipakkam area to Bagmane Constructions for Rs 612 crore. The property, situated along the Old Mahabalipuram Road IT corridor, spans 5.9 lakh square feet over 13.6 acres.
In another major development last August, LTI Mindtree leased 5.85 lakh square feet of space in Manapakkam, a key suburban commercial cluster in Chennai. The lease covers 13 floors, including the ground floor, within Tower 1 of the L&T Innovation Campus on Mount Poonamallee Road. The starting monthly rent for that property was Rs 3.98 crore.
