Tata Digital Leases 59,000 Sq Ft Office Space in Mumbai's Lower Parel for ₹635 Crore

In a significant move reflecting the growing appetite for premium commercial real estate in Mumbai, Tata Digital Pvt Ltd has secured approximately 59,000 square feet of Grade-A office space at One International Centre in Lower Parel. The comprehensive five-year lease agreement, finalized in March 2025, underscores the continued evolution of Mumbai's commercial property landscape.

Strategic Lease Agreement Details

The technology arm of the Tata Group has leased space across three full floors - the 15th, 16th, and 17th - of Tower 1 at the prestigious One International Centre. The lease agreement, executed on March 17, 2025, spans 60 months from February 1, 2025, to January 31, 2030, with rent commencement scheduled for July 16, 2025.

Lower Parel's Growing Commercial Appeal

The deal represents a strategic headquarters relocation for Tata Digital, which plans to move from its current South Mumbai office at Fort House to this newly leased space. This shift highlights Lower Parel's rising prominence as Mumbai's premium commercial hub, attracting major corporations seeking modern office infrastructure.

One International Centre has established itself as a premier commercial development in the area, consistently attracting high-profile corporate tenants. The building's success reflects the broader transformation of Lower Parel into one of Mumbai's most sought-after business districts.

Market Implications and Trends

The lease agreement carries several significant implications for Mumbai's commercial real estate market:

• The rental rate of approximately ₹180 per square foot demonstrates the premium pricing commanded by Grade-A office spaces in central Mumbai
• The five-month rent-free period from February to mid-July 2025 provides Tata Digital with adequate time for fit-out and operational setup
• With annual rent escalations of 5% and additional charges for common area maintenance and parking, the total lease value exceeds ₹635 crore over the five-year term
• The substantial security deposit of ₹7.07 crore reflects the high-value nature of the transaction

Mumbai's Commercial Real Estate Momentum

This transaction aligns with broader trends in Mumbai's real estate market dynamics, where demand for premium office spaces continues to drive significant leasing activity. The deal underscores the confidence major corporations have in Mumbai's commercial property sector, particularly in established business districts like Lower Parel.

The move also reflects the ongoing evolution of corporate real estate strategies, with companies seeking modern, well-connected office spaces that offer both prestige and operational efficiency. Commercial property investments in Mumbai continue to attract significant interest from both occupiers and investors.

Future Outlook

Tata Digital's substantial commitment to Lower Parel signals confidence in the area's long-term growth prospects. The lease agreement positions the company strategically within Mumbai's evolving commercial landscape, while contributing to the ongoing transformation of Lower Parel as a premier business destination.

The transaction also reflects the broader trend of technology companies expanding their physical footprint in India's major commercial centers, despite the growth of remote and hybrid working models. Mumbai's real estate market continues to demonstrate resilience and growth across both residential and commercial segments.