State Street leases 2.1 lakh sq ft of office space in Coimbatore for ₹1 crore monthly rent

State Street Corporate Services Delhi Private Limited, a subsidiary of global financial services provider State Street Corporation, has leased 2.1 lakh sq ft of office space in Coimbatore, Tamil Nadu, for a monthly rent of ₹1.05 crore, according to documents accessed by data analytics firm Propstack.

The lease, which spans four floors, is located in Tower D of India Land KGISL Tech Park (CHIL SEZ). The document showed that India Land Techpark Pvt Ltd is the landlord for the transaction.

The lease began on April 1, 2025, at a monthly rate of ₹50 per sq ft.

According to the agreement, the 10-year lease includes a 3% rent hike in February 2026, followed by annual increases of 5% each year thereafter.

The company paid a security deposit of ₹7.36 crore for the transaction.

Experts say the transaction highlights a growing trend of IT and IT-enabled services (ITeS) companies expanding their operations to tier-2 cities. This move also reflects a strategic shift driven by factors such as lower operational costs, improved infrastructure, the availability of skilled talent, and supportive state policies.

Email queries have been sent to State Street Corporate Services Delhi Private Limited and India Land. If a response is received, the story will be updated.

Also Read: ₹2.8 crore monthly rent”>TCS Limited leases 6.3 lakh sq ft of office space in Chennai for ₹2.8 crore monthly rent

Previous transactions in Tamil Nadu

In March, Tata Consultancy Services Limited leased 6.3 lakh sq ft of office space in Chennai’s Ozone Techno Park for ₹2.8 crore monthly rent, according to documents accessed by data analytical firm Propstack.

Walmart had leased 4.6 lakh sq ft of office space in Chennai for ₹3.26 crore monthly rent in January this year, documents accessed by Propstack showed. The office space is located in International Tech Park, and the company paid a deposit of ₹19.55 crore.

In August last year, IT services major LTI Mindtree leased 5.85 lakh square feet of office space in Chennai’s Manapakkam suburb for a starting monthly rental fee of ₹3.98 crore.

Also Read: ₹3.26 crore”>Walmart leases 4.6 lakh sq ft office space in Chennai for a monthly rent of ₹3.26 crore

South Indian cities gaining ground on commercial leasing

South Indian cities lead in commercial leasing, with a 26% rise in average rent over six years between 2019 and 2024. Bengaluru topped the list with a 26% increase in monthly office rentals, followed by Hyderabad at 25% and Chennai at 20%. In contrast, NCR in North India experienced a rental growth of 10%, according to a report by ANAROCK.

In the last six years, a total of nearly 283.21 mn sq. ft. of office space has been added across the top 7 cities with 2022 recording the highest new supply addition of 57.75 mn sq. ft, the report said.

Overall, the South cities added nearly 172.96 mn sq. ft. of office space, comprising a whopping 61% overall share.