Apple India leases 2.7 lakh sq ft office in Embassy Zenith, Bengaluru
Apple India leases 2.7 lakh sq ft office in Embassy Zenith, Bengaluru
The agreement has a rental outlay of Rs.1,010 crores
Apple India Pvt Ltd has signed a 10-year lease agreement for a 2.7 lakh sq ft office space in Embassy Zenith on Sankey Road in the upscale Vasanth Nagar area of Bengaluru, Karnataka.
It is a US-based technology giant's second office in India's technology hub and perhaps its largest, with over 1,200 employees. It could also be one of the largest single-tenant office leases in the city’s commercial real estate market.
The lease terms state that Apple India will occupy the 5th to 13th floors of Embassy Zenith, covering a carpet area of 196,179 sq ft, or 268,737 sq ft, including chargeable area. The monthly rent is Rs.6.315 crore (Rs.235 per sq ft).
The lease includes an annual escalation clause of 4.5 percent, which allows steady upward revision in rent throughout the lease term. Apple has already deposited Rs.31.57 crore as a security amount.
The agreement includes payments for maintenance of common areas and car parking facilities, which contribute to the total cost burden borne by the company.
Financial disclosures indicated that Apple India would pay Rs.1,010 crore over 10 years, covering rent, car park charges, and common area maintenance (CAM) fees.
Meanwhile, the company has expressed interest in future expansion within the building, with plans to lease the ground to the fourth floors. The additional area measures 121,203 sq ft. It would nearly double the office footprint, totalling 4 lakh sq ft.
Owned by Mac Charles (India) Limited, the building is affiliated with Embassy Group, a major player in Bengaluru's commercial property development sector.
The expansion is part of Apple's large-scale plans to increase production in India. It intends to open four retail stores in Bengaluru and Pune, in addition to stores in Delhi-NCR and Mumbai. Its two marquee stores in Mumbai and Delhi became operational in 2023.
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 on Cubbon Road in central Bengaluru. Its operations began in 2023.
In May this year, it leased more than 12,600 sq ft in Oberoi Sky City Mall, Borivali, Mumbai, and 8,000 sq ft in Batrayanpura, Bengaluru.
