India Office Leasing Hits Record 61.06 MSF | IBM Signs ₹343 Cr Bengaluru Lease | WeWork India Reports ₹20.43 Cr Q2 Profit
This week’s FLEXO newsletter brings you the latest updates in India’s commercial real estate scene. Office leasing across the country has reached a record high for the first nine months of 2026, supported by growing demand from Global Capability Centres (GCCs) and flexible workspace operators. IBM is expanding its Bengaluru footprint, WeWork India has reported strong quarterly profit growth, and Hyderabad is emerging as a major destination for large corporate office deals. Let’s explore the full story in this week’s updates!
India’s Office Leasing Hits Record 61.06 Million Sq Ft in January to September 2026
India’s gross office leasing across the top seven cities reached a record 61.06 million sq ft between January and September 2026, according to JLL. The July to September quarter alone recorded 23.17 million sq ft, making it the strongest quarter of the year. GCCs leased 26.2 million sq ft during the nine-month period, a 30.6% year-on-year increase, accounting for 42.9% of total leasing. Flexible workspace operators also recorded their highest-ever leasing volume for a comparable period, at 13.83 million sq ft. The figures underline the growing importance of GCCs and flexible workspaces in India’s commercial office market.
IBM India Leases 2.83 Lakh Sq Ft in Bengaluru for ₹343 Crore
IBM India has signed a 10-year lease for 2,83,000 sq ft of office space at Bagmane Solarium City’s Radon tower in Bengaluru. The agreement covers the ground floor and three upper floors, with a starting monthly rent of ₹2.49 crore, or ₹88 per sq ft. The estimated rental outlay over the lease tenure is ₹343 crore, while fit-out rent over five years is expected to add approximately ₹179 crore. The agreement includes a 15% rent escalation every three years. The transaction reinforces Bengaluru’s position as a key destination for large technology companies seeking substantial office space.
WeWork India Reports ₹20.43 Crore Net Profit in Q2 FY27
WeWork India reported a consolidated net profit of ₹20.43 crore for the quarter ended September 30, 2026, marking a 219.2% increase from ₹6.40 crore in the corresponding quarter last year. Consolidated total income rose 34.3% year-on-year to ₹786.43 crore. The company added approximately 11,700 desks during the quarter, taking its operational capacity to 1.45 lakh desks across 85 centres in eight cities. Its operational footprint reached 9.8 million sq ft, while mature-centre occupancy stood at 87.7% and overall portfolio occupancy at 83.7%. GCCs contributed 40.8% of its core revenue during the quarter.
Blackstone Opens Bengaluru GCC as It Targets $100 Billion in India Investments
Global investment firm Blackstone has launched its first global capability centre outside the United States in Bengaluru. The centre will support global operations across finance, technology, human resources, legal and compliance functions. Blackstone plans to increase its investments in India to $100 billion over the next five years, up from approximately $51 billion invested to date. Its Bengaluru team, which currently has around 80 employees, is expected to grow to 100 or more by the end of 2026. The development highlights Bengaluru’s role in attracting global business operations and the growing importance of India to multinational companies.
Hyderabad Overtakes Delhi and Mumbai in Quarterly Office Leasing
Hyderabad recorded 4.21 million sq ft of gross office leasing in the July to September quarter of 2026, surpassing Delhi-NCR and Mumbai. The volume was more than double the previous quarter’s level and 49.5% higher year-on-year. Major transactions included a 5 lakh sq ft lease by global financial technology company Wise and a 7.5 lakh sq ft lease by investment and technology firm DE Shaw. Bengaluru remained ahead of Hyderabad, recording 5.2 million sq ft of leasing during the quarter. The activity reflects Hyderabad’s growing appeal to global companies establishing and expanding their GCCs.
Sonu Sood Leases Mumbai Commercial Property in a ₹3.52 Crore Deal
Actor Sonu Sood has leased a commercial unit in Aram Nagar, Versova, in Mumbai’s Andheri West, under a five-year rental agreement with Bokka Coffee. The lease is expected to generate approximately ₹3.52 crore in total rent over the tenure. Monthly rent starts at ₹5 lakh in the first year and rises to ₹6.80 lakh in the fifth year, reflecting an annual escalation of approximately 8%. The transaction was registered in October 2026 and includes a security deposit of ₹32 lakh. The deal adds to recent activity involving individual investors leasing commercial properties to businesses in Mumbai.
GCC Expansion and Office Demand Create Opportunities for India’s REIT Market
India’s expanding GCC ecosystem is influencing demand for modern office buildings and creating opportunities for the country’s real estate investment trusts (REITs). As global companies increasingly establish technology, research, analytics and other specialised functions in India, demand for quality office space remains an important consideration for property owners and investors. However, the impact on individual REITs depends on factors such as occupancy, rental income, tenant concentration, lease renewals and operating costs. Investors need to look beyond overall leasing growth and examine the financial performance and underlying assets of each trust. The broader expansion of India’s office market offers opportunities, but does not guarantee returns from any individual REIT.
India’s commercial real estate market is seeing growth across multiple fronts. Record office leasing, expanding GCC operations and rising demand for flexible workspaces are reshaping the market, while companies such as IBM and Blackstone continue to strengthen their presence in India. Hyderabad’s latest leasing performance further highlights how demand is spreading across major business hubs.
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We’ll keep you updated with more insights next week!
