Cognizant Technology Solutions has recently renewed two leases for 6.3 lakh square feet (lsf) of office spaces in Pune for a combined monthly rent of ₹3.4 crore. Earlier this month, the company had said that it would be giving up 11 million square feet of office space, primarily in India, over the next two years as part of its cost-cutting measures.
Cognizant Technology Solutions has recently renewed two leases for 6.3 lakh square feet (lsf) of office space in Pune for a combined monthly rent of ₹3.4 crore. Earlier this month, the company had announced that it would be giving up 11 million square feet of office space, primarily in India, over the next two years as part of its cost-cutting measures.
The offices, where it has renewed leases, are located in two blocks of Quadron Business Park, a Grade A office park in Hinjewadi area of Pune and is part of the portfolio of Embassy Office Parks REIT. With 1.9 million square feet of leasable area it currently has a 50 per cent occupancy, according to the Embassy REIT website.
In Block 4 of the office park, Cognizant has leased four floors occupying a space of 2.6 lsf and is paying monthly rent at ₹48.09 psf, while in Block 2 it has leased four floors and additional area in the basement occupying 3.7 lsf and paying ₹57.33 psf as monthly rent. Both the leases are for five years each with a rent escalation of 15 per cent after every three years, according to details accessed by Propstack.
The Nasdaq-listed company had said in the earnings call after releasing its March quarter results that it would give up space in large cities in India but investing in collaboration spaces in smaller cities. The consolidation in office space is expected to result in savings of $200 million in costs.
Currently it operates out of 45 office locations in India spread across Bengaluru, Chennai, Coimbatore, Gurugram, Hyderabad, Kochi, Kolkata Mangalore, Mumbai, Mysore, Noida, and Pune.
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Published on May 26, 2023
