BofA Strikes a Box Office Commercial Office Space Deal in Chennai - DLF Downtown Taramani

Bank of America's Historic Lease: 1.1 Million Sq Ft Record-Breaking Office Space Deal in Chennai

In a landmark move, Bank of America (BofA) has secured a massive 1.1 million square feet of office space in Chennai. This deal represents the largest office space transaction of 2023 and marks one of BofA's most significant captive centers outside the United States. The property, located at DLF Downtown Taramani, is primarily intended for the bank's back office operations in India.

Phase-Wise Occupancy and Development

Sources informed that the property is currently in the fit-outs phase, with operations expected to commence from the second quarter of 2024 for the first phase. In this initial phase, BofA will occupy approximately 710,000 square feet, and an additional 390,000 square feet will be taken up in the second phase. The space is estimated to accommodate around 7,000 to 8,000 employees.

DLF Downtown Taramani: A Prime Location

DLF Downtown Taramani, a 27-acre joint venture between DCCDL and the Tamil Nadu Industrial Development Corporation (TIDCO), is emerging as a coveted business hub. An individual familiar with the matter revealed that phase one of DLF Downtown is fully committed and is undergoing fit-outs for various clients, commanding a rent of over INR 100 per square foot. The project, LEED platinum certified, is already witnessing significant occupancy from large corporations, including Standard Chartered Bank’s GBS and Bank of America, among others.

Chennai's Office Market: A Rising Star

The Chennai office market is witnessing a strong uptrend, especially for Grade A assets. The first phase of the DLF Downtown project, encompassing 3.3 million square feet, has been pre-committed for initial take-up and phased expansion. This trend is reflective of robust market sentiment and the city's growing stature in the office space sector.

Captive Centers Driving Office Space Demand

The last quarter of the year saw an unprecedented surge in demand for office spaces in India, with significant contributions from Bengaluru, Chennai, and Hyderabad. Captive centers, client-owned and operated service delivery centers, have played a crucial role in this growth, particularly in the technology and BFSI sectors. These centers, leveraging local engineering and technology talent, have been instrumental in large deal transactions in the top six cities.

Chennai's Leasing Activity: A New High

Chennai has notably broken its previous records and emerged as a top contender in the office leasing market. The city registered a gross absorption of 10.5 million square feet in 2023, more than double the activity compared to 2022. This remarkable performance has positioned Chennai alongside Bengaluru and Delhi NCR as a leading destination for office space demand in India.