Office space leasing in Chennai sees growth, records 2.6 million sq.ft in first quarter of 2025

The report also highlighted that Chennai’s office space take-up in 2025 was primarily driven by small-sized deals (less than 10,000 sq.ft).
| Photo Credit: R. RAGU

CBRE South Asia Private Limited, a real estate consulting firm, said office space leasing in Chennai had witnessed growth, recording 2.6 million sq.ft in the first quarter of 2025, when compared to 1.8 million sq.ft during the same period in 2024.

In its recent report ‘CBRE India Office Figures Q1 2025’, the consulting firm said that during January-March 2025, key sectors that drove absorption included technology (32%), fast-moving consumer goods (FMCG) and retail (19%), and flexible space operators (14%).

During the period of January to March 2025, several notable transactions were recorded in the city. Tata Consultancy Services secured a lease for 632,280 sq.ft at Ozone Techno Park, Vestas took up 113,290 sq.ft at ITP Ascendas 1, and a prominent FMCG company leased 465,450 sq.ft at the same ITP Ascendas 1. The report also highlighted that Chennai’s office space take-up during the first three months of 2025 was primarily driven by small-sized deals (less than 10,000 sq.ft).

“A key trend shaping the city’s office leasing is its attractiveness to both Indian and global corporates,” said Anshuman Magazine, chairman and CEO, India, Southeast Asia, Middle East, and Africa, CBRE. He then added that Chennai was also witnessing the emergence of campus-style office developments, which were fast gaining traction due to rising occupier preference for modern, integrated work-spaces.

“With a total office stock of over 89 million sq.ft as of December 2024 and a projection to cross 100 million sq.ft by the end of 2026, Chennai is well on its way to becoming one of the top office destinations in the country,” Mr. Magazine said.

He also highlighted that the city had secured its position as a leading Global Capability Centre (GCC) hub, ranking third in GCC leasing (2022–24), with 2.9 million sq.ft leased in 2024 alone.

“The government’s proactive stance through GCC-specific and sector-focused policies has further reinforced Chennai’s competitiveness as a preferred destination for global enterprises,” Mr. Magazine added.