Technology firm LTIMindtree and L&T Technology Services (LTSS) are consolidating their real-estate portfolio across Chennai amidst cost-cutting and hybrid work models implemented across sectors.
LTIMindtree has relinquished a 300,000 sq ft in Ramanujan IT City SEZ and is now looking to move into L&T Innovation Campur at Manapakkam in Chennai. LTTS is also contemplating to give up the 3 lakh sq ft office space in Chennai.
The technology firm is likely to delay additional space taken up in Chennai as a hybrid work model and global recession to cut real estate costs. LTTS is also likely to move into L&T Innovation Campus. LTIMindtree has leased 600,000 sq ft at L&T Innovation Campus in Chennai as a Phase I plan and will move in there by Q1 2024. LTIMindtree has taken a total space of 1.2 mn sq ft. Immediate space takes up 600,000 sq ft and hard option of 600,000 sq ft which they may or may not exercise.
L&T Technology Services (LTTS) plans to shift office space in Bengaluru in L&T Tech Park which is adjacent to L&T’s upcoming residential project L&T Raintree Boulevard.
Office vacancy levels remained rangebound during Q1 2023 in line with the Q4 2022 levels, pointing to a resilient commercial office market. During Q1 2023 while the office market witnessed softer demand, it had little impact on the vacancy levels.
