Apple Signs 10-Year Lease for 2.7 Lakh Sq Ft Office Space in Bengaluru, Total Rental Outlay at Rs 1010 Crore

Apple India has leased 2.7 lakh sq ft office space in Embassy Zenith, Bengaluru, for 10 years with a total rental outlay of Rs 1,010 crore. This will be Apple's second office in Bengaluru and could house over 1,200 people. The monthly rent is Rs 6.315 crore, with an annual escalation clause of 4.5%. Apple has also expressed interest in expanding to additional space within the building.

Apple India Pvt Ltd has signed a 10-year lease for approximately 2.7 lakh sq ft of office space in Embassy Zenith, Bengaluru, with a total rental outlay of over ₹1,010 crore. This will be Apple's second office in Bengaluru and could house over 1,200 people, according to industry watchers. The monthly rent is ₹6.315 crore, translating to an effective rate of ₹235 per square foot. The lease includes an annual escalation clause of 4.5%, allowing for steady upward revision in rent throughout the lease term. Apple has also expressed interest in potential future expansion within the same building, with plans to lease additional space measuring around 1.21 lakh sq ft [1].

This significant investment underscores Apple's confidence in the Indian market and its strategic expansion plans. The company's office space expansion is part of its broader strategy to increase production in India and open more retail stores in key cities like Bengaluru, Pune, Delhi-NCR, and Mumbai [2]. Apple has already leased several floors in Prestige Estates Projects’ commercial building, Prestige Minsk Square, in Bengaluru’s central business district on Cubbon Road, for 10 years at a starting monthly rent of ₹2.44 crore [2].

Moreover, Apple's supply chain resilience and localized production in India are expected to reduce geopolitical risks and enhance AI infrastructure. The company's 2025 production readiness is anchored by a $600 billion U.S. investment, with $100 billion allocated in 2025 alone. This initiative has catalyzed the creation of an end-to-end silicon supply chain in the United States, projected to produce 19 billion chips for Apple products in 2025 [3].

The lease agreement also includes payments for maintenance of common areas and car parking facilities, contributing to the total cost burden borne by the company. Apple has deposited ₹31.57 crore as a security amount to secure the lease [1].

This office space expansion is a strategic move for Apple, positioning it to capitalize on India's growing tech market and strengthen its supply chain. The company's commitment to India reflects its long-term vision and strategic planning, which is likely to benefit investors and stakeholders alike.

References:
[1] https://www.hindustantimes.com/real-estate/apple-india-leases-2-7-lakh-sq-ft-office-space-from-embassy-group-in-bengaluru-for-10-years-at-over-1-000-crore-101755435517000.html
[2] https://www.business-standard.com/companies/news/apple-leases-2-7-lakh-sft-in-embassy-zenith-bengaluru-for-10-years-125081700855_1.html
[3] https://www.ainvest.com/news/apple-supply-chain-resilience-valuation-realism-case-term-outperformance-2508/