CIBC Leases 1.21 Lakh Sq. Ft. of Managed Office Space in Hyderabad

Canadian banking major CIBC has leased around 1.21 lakh sq. ft. of managed office space at Meenakshi Eco Park, Hyderabad, for its Global Capability Centre (GCC).

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₹180 Crore Rent for Five Years

Hyderabad’s IT and office real estate market has recorded another major leasing transaction. Canadian banking major Canadian Imperial Bank of Commerce (CIBC) has leased approximately 1.21 lakh sq. ft. of managed office space in the city for its Global Capability Centre (GCC). The five-year lease agreement is estimated to be worth around ₹180 crore in total. Under the agreement, CIBC will initially pay a monthly rent of approximately ₹2.72 crore, translating to around ₹225 per sq. ft. The lease includes a provision for a 5% annual escalation in rent, taking the total rental outgo over five years to nearly ₹180 crore.

CIBC has also paid a security deposit of ₹16.30 crore for the premises. The deal stands out because, despite requiring a large office footprint, CIBC has opted for a managed office model rather than setting up and maintaining a conventional long-term office facility on its own. The office space is located at Meenakshi Eco Park, Tower-1, Hyderabad, and is spread across two floors. The lease agreement specifies a chargeable area of approximately 1.21 lakh sq. ft., while the built-up area is around 95,352 sq. ft. The premises also include parking facilities for 121 cars.

GCC Expansion Boosts Office Demand

Globally, large corporations are increasingly choosing Indian cities as strategic hubs for their international operations. Companies in the banking, financial services and insurance (BFSI) sector, in particular, are expanding their Global Capability Centres across technology hubs such as Hyderabad, Bengaluru, Pune and Chennai. CIBC’s latest lease is another indication of the continued expansion of GCCs in Hyderabad.

The city’s managed office market has witnessed several large transactions in recent times. Industry experts say that if this demand continues, it could also influence office rental values across key IT corridors. Areas such as Gachibowli, Raidurg, Financial District, Madhapur and Nanakramguda already have a strong concentration of corporate offices. The arrival and expansion of new GCCs could further increase demand for quality office space in these locations.