LTIMindtree, LTTS consolidate realty assets

Technology firm LTIMindtree and L&T Technology Services (LTSS) are consolidating their real estate portfolio across Chennai amidst cost-cutting and hybrid work models implemented across sectors.

LTIMindtree has relinquished a 300,000 sq ft at Ramanujan IT City SEZ and is now looking to move into L&T Innovation Campus at Manapakkam in Chennai. LTTS is also contemplating to give up the 3lakh sq ft office space in Chennai.

"The technology firm is likely to delay additional space taken up in Chennai as a hybrid work model and global recession to cut real estate costs. LTTS, is also likely to move into L&T Innovation Campus," said people aware of the transaction.

LTIMindtree has leased 600,000 sq ft at L&T Innovation Campus in Chennai as a Phase 1 plan and will move in there by Q1 2024.

"LTIMindtree has taken a total space of 1.2 Million Sq ft . Immediate space takes up 600,000 sq ft and hard option of 600,000 sqft, which they may or may not exercise," said one of the people quoted above.

LTIMindtree and LTSSS did not reply to an email sent by ET till press time.

L&T Technology Services (LTTS) plans to also shift office space in Bangalore in L&T Tech Park, which is adjacent to L&Ts upcoming residential project L&T Raintree Boulevard.

Office vacancy levels remained rangebound during Q1 2023, in line with the Q4 2022 levels, pointing to a resilient commercial office market. During Q1 2023, while the office market witnessed softer demand, it had little impact on the vacancy levels, mentioned Colliers.

"Going ahead, we expect demand and supply to move in unison, keeping the vacancy and rental levels range bound. The latter part of 2023 may see signs of strong recovery provided the recessionary concerns lessen in the beginning of the second half of 2023, said Peush Jain MD-office services, India, Colliers.

The year 2022 saw a robust demand with occupiers going ahead with their expansion plans after a 2-year long wait-and-watch scenario, market activity softened in Q1 2023 amidst the looming recessionary concerns and economic headwinds.