Pre-construction, built-to-suit projects gain momentum in office leasing

India’s office market is witnessing an increase in built-to-suit (BTS) developments and pre-construction leasing by multinational corporations (MNCs) and large companies to stay ahead of the curve amid a strain in Grade A office supply.    

 

And, demand across the top cities is getting concentrated into three broad categories — global capability centres (GCCs), data centres, and large flexible workspace operators. 

 

“Landmark transactions such as JP Morgan’s expansion in Mumbai and Google’s large campus commitments in Bengaluru underscore how GCCs are locking in future-ready, grade A campuses well before completion. Similarly, the Princeton Digital Group deal highlights the specialised, built-to-suit nature of the rapidly expanding data centre segment,” said Propstack co-founder Raja Seetharama, noting a clear structural shift in pre-commitment activity. 

 

Across markets, companies such as Uber, TCS, Bank of America, American Express, Optum, DXC Technologies, Eaton, and Deloitte have pre-leased sizeable office blocks to stay ahead of the leasing curve in 2025.

 

Peush Jain, managing director (MD), commercial leasing & advisory, Anarock Group, said, “Shortage of large, ready-to-move grade A office spaces in prime locations due to land paucity or slower approval process is prompting large occupiers to scout for suitable BTS spaces. Also, developers are cautious about oversupply of office spaces similar to previous years, and rising financing costs. Further, demand from GCCs, information technology (IT)/ information technology-enabled services (ITeS), and banking, financial services and insurance (BFSI) sectors has grown steadily. Such BTS projects become handy as these companies require customised layouts, a strong digital infrastructure, security, and scalability.”

 

Veera Babu, executive MD, tenant representation, Cushman & Wakefield, describes this trend as a structural shift rather than a temporary spike.

 

In cities like Bengaluru, Delhi NCR, and Mumbai, annual demand has consistently exceeded completions by 30–40 msf. 

 

Large integrated campuses developed by leading players such as DLF, Brookfield, Embassy, Bagmane, K. Raheja Corp, and Sattva are operating at near-full occupancy. As a result, large occupiers, especially GCCs, IT services firms, and BFSI players are committing to space well in advance to secure quality assets in core locations.

 

This scarcity is most pronounced in premium, environmental, social and governance (ESG)-compliant grade A stock.

 

Babu said nearly 15 msf scheduled for delivery in 2026–27 is already pre-leased. And, the broader demand pipeline stands at around 60 msf with large occupiers actively evaluating premium office requirements across key Indian cities.

 

According to Anarock Research, net office leasing across the top seven cities reached an all-time high of nearly 55 msf in 2025, while new completions stood lower at 51.83 msf.

 

The trend of absorption outpacing supply was also visible in 2024.

 

This supply-demand gap has been particularly acute in prime micro-markets, where vacancy levels have compressed to around 5 per cent, according to Babu. 

 

“Many tenants commit early so that they can lock in rentals and thereby save themselves from future price increases in high-demand micro markets,” Jain added.

 

Anshuman Magazine, chairperson and chief executive officer (CEO), India, Southeast Asia, Middle East & Africa, CBRE, points to a sharp market bifurcation. While overall supply reached a historic high of around 59 msf in 2025, demand for “investment-grade” assets continues to outstrip availability. 

 

“This scarcity of ‘investment-grade’ inventory is driving a strategic pivot towards BTS and pre-construction leasing in India’s top markets. This comes as occupiers seek to insulate themselves from future supply crunches and rental volatility. GCCs are emerging as the primary catalysts of this trend,” Magazine added.

 

For GCCs, the requirements are particularly specific. They seek large contiguous floor plates, bespoke technical infrastructure, advanced security systems, and strict sustainability compliance.

 

These are features often unavailable in ready-to-move stock.

 

Another important factor is rental risk mitigation. Tenants are pre-committing early to lock in rentals and insulate themselves from future price increases in high-demand micro markets. Developers, on their part, remain cautious about speculative oversupply, especially given the rising financing costs and memories of previous cycles of excess inventory.

 

Early anchor commitments from large occupiers provide revenue visibility and de-risk projects.

 

On the other hand, Amit Goenka of Nisus Finance observed that dedicated BTS developments remain limited, largely concentrated among IT players and GCC campuses.

 

However, with sustained GCC growth, these developments are expected to rise going ahead, but will remain relatively small compared to the overall market size.

 

A developer said that much of the activity is in the form of pre-commitments to speculative buildings rather than exclusive BTS construction. Many companies are consolidating operations, moving from multiple buildings into single, larger campuses, while planning for future growth. Demand for 2–3 msf of BTS space nationally reflects this consolidation-plus-expansion strategy.