Apple rents 270K sq ft office space in B'luru, to pay ₹1K cr in 10 years

Apple India signs a 10-year lease for 2.7 lakh sq ft office space in Embassy Zenith, Bengaluru, with a total rental outlay of Rs 1010 crore, marking its second office in India's tech hub

Apple India Private Limited has inked a lease agreement for a 2.7 lakh sq ft office space in Embassy Zenith, located on Sankey Road in the upscale Vasanth Nagar area of Bengaluru. The 10-year lease has a total rental outlay of Rs 1,010 crore.

 

This will be Apple's second office in India's tech hub and could be its largest, housing more than 1,200 people, according to industry watchers. It may also become one of the largest single-tenant office leases in Bengaluru's commercial real estate market.

 

According to lease documents from Propstack, the terms of the lease specify that Apple India will occupy the 5th to 13th floors of Embassy Zenith, covering a substantial carpet area of 196,179 sq ft, or 268,737 sq ft including chargeable area.

 

 

The monthly rent is Rs 6.315 crore, translating to an effective rate of Rs 235 per square foot. The lease includes an annual escalation clause of 4.5 per cent, which allows for steady upward revision in rent throughout the lease term. To secure the lease, Apple has deposited Rs 31.57 crore as a security amount, as per the agreement. 

 

In addition to base rent, the lease agreement includes payments for maintenance of common areas and car parking facilities, which contribute to the total cost burden borne by the company. Detailed financial disclosures indicate that Apple India will pay approximately Rs 1,010 crore over 10 years, covering rent, car park charges, and common area maintenance (CAM) fees.

 

Apple has also expressed interest in potential future expansion within the same building, with plans to lease the ground to fourth floors as well. This additional area measures around 121,203 sq ft, which would nearly double their office footprint, bringing it to nearly 4 lakh sq ft.

 

The building is owned by Mac Charles (India) Limited, affiliated with Embassy Group, a major player in Bengaluru's commercial property development sector.

 

Queries to Apple and Embassy Group did not elicit a response as of Sunday night.

 

In 2021, Apple leased 1.16 lakh sq ft at a monthly rental of Rs 2.43 crore in Prestige Minsk Square, a commercial building located on Cubbon Road in central Bengaluru, where it began operations in 2023.

 

This office space expansion is part of Apple's large-scale plans to increase production in India and open four more retail stores in Bengaluru and Pune, in addition to stores in Delhi-NCR and Mumbai, as well as its two marquee stores in Mumbai and Delhi opened in 2023.

 

The US-based technology giant has also leased more than 12,600 sq ft in Oberoi Sky City Mall, Borivali, in May and about 8,000 sq ft in Batrayanpura, Bengaluru.