Cognizant Extends Two Office Leases in Hinjewadi Rajiv Gandhi IT Park, Pune

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Cognizant Extends Two Office Leases in Pune

Hinjewadi:

The Indian division of U.S.-based Cognizant Technology Solutions has renewed two lease agreements for over 627,500 square feet of office space in the Hinjewadi Rajiv Gandhi IT Park in Pune.

Using two agreements registered on April 28th, the company has renewed the tenancy for five years. The space is distributed across ten storeys and two buildings of Quadron Business Park.

Renewals are significant in light of the Nasdaq-listed information technology company's announcement earlier this month that it will lay off 3,500 employees, or approximately 1% of its global non-billable corporate workforce, and reduce real estate costs by vacating office spaces in India. The company has approximately over 3.51 million employees.

According to the documents obtained via Propstack, the company will pay Rs 1.25 crore per month for the 260,000-square-foot space in block 4 under the terms of the renewed lease. The monthly rent for the space in block 2, which is 367,000 square feet, is Rs 2.10 crore. It will pay more than Rs 201 crore in rent over the course of five years.

The agreement for block 4 extends from October 2021 to October 2026, whereas the agreement for block 2 spans December 2022 to December 2027.

Despite the forecast of a recession in western markets and its likely impact on Indian commercial real estate, the office space segment has witnessed consistent growth in deal activity thus far. The overall commercial real estate market in Pune has been acquiring a great deal of momentum, with a number of significant corporate lease transactions occurring in 2022 and 2023.