LTI Mindtree is set to enhance its footprint by acquiring an additional 600,000 square feet of space at L&T Innovation Campus in Chennai, doubling its size as part of the growing return-to-work momentum, according to sources familiar with the development. This expansion will bring LTI Mindtree’s total occupancy to nearly 1.2 million square feet across two towers at L&T Innovation Campus in Chennai.
The new campus, constituting a full tower, has the capacity to house up to 10,000 IT professionals. The first tower of 600,000 square feet is expected to be occupied by LTI Mindtree from April 2024, with the remaining space to be utilized by November 2024. The rental cost for the two towers is estimated to be Rs 150 crore, as per the sources.
In 2023, LTI Mindtree, along with L&T Technology Services (LTTS), streamlined its real estate portfolio in Chennai amid cost-cutting measures and the implementation of hybrid work models. As part of this, LTI Mindtree relinquished 600,000 square feet across two IT parks in Chennai.
The Chennai office market witnessed remarkable growth in 2023, surpassing previous records and registering more than double the leasing activity compared to the annual average of the last four years. The city experienced its highest-ever office leasing with 10.5 million square feet of gross absorption, placing it among the top three alongside Bengaluru and Delhi NCR, according to Colliers.
Leasing activity in 2023 was primarily driven by technology and BFSI (Banking, Financial Services, and Insurance) players, constituting approximately half of the total share. Notable companies like Bank of America, Standard Chartered Bank, Qualcomm, Vestas, Hitachi Energy, and Equiniti secured IT office spaces in the city.
Despite robust demand, vacancy levels witnessed a significant decrease of 3.7 percentage points year-on-year, reaching 16.3% by the end of the year, according to the report.
