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Walmart has leased 460,000 sq. ft. of office space at Radial IT Park, Chennai, with a monthly rent of INR 3.26 crore and a 4% annual escalation, marking a major expansion of its India-based backend operations. The five-year lease, which began in January 2025, includes a INR 19.55 crore deposit. This move strengthens Walmart's tech and analytics capabilities in India, supporting global operations. Located in the ITPC hub managed by Ascendas India Trust, the facility joins a growing list of global firms choosing Chennai for their global capability centres. The deal underscores strong demand for Grade A tech-centric office spaces in India.
Walmart, one of the world's largest retail giants, has taken a significant step toward strengthening its backend operations in India by leasing 460,000 sq. ft. of commercial space in ITPC, Chennai. The lease, which commenced in January 2025, carries a monthly rental of INR 3.26 crore, with escalation clauses built into the agreement over the five-year lease term. Advertisement
The American multinational has signed the lease for five years, occupying both the ground floor and four upper floors of the Radial IT Park, a key commercial hub in the city. The rental rate has been locked at INR 70 per sq. ft. per month, with an annual 4% escalation, pushing the monthly rent to INR 3.8 crore by end of 2029 (INR 82 per sq. ft.). Walmart has also deposited INR 19.55 crore, equivalent to six months' rent, as part of the agreement, as per data from Propstack.
This lease underlines Walmart's growing reliance on its India-based global tech and back-office operations, which support e-commerce, analytics, supply chain, and fintech initiatives not just in India but across the US and other international markets.
This Chennai lease comes after Walmart's steady expansion of its India-based tech operations, especially following its acquisition of Flipkart in 2018. In recent years, Walmart has bolstered its tech workforce in Bengaluru and Gurugram, and now Chennai appears to be emerging as another key centre in its South India operations strategy.
The location-ITPC (International Tech Park Chennai)-is known for hosting several Fortune 500 firms and is managed by Ascendas India Trust, a subsidiary of CapitaLand. The area is preferred for global capability centres (GCCs) due to its proximity to Chennai's airport and a skilled workforce pipeline from institutions like IIT Madras and Anna University.
Similar examples include Amazon's lease of 9 lakh sq. ft. in Hyderabad for backend operations, and JP Morgan's 1 million sq. ft. campus in Navi Mumbai to house its India tech team. The Walmart lease further adds to the growing demand for large, Grade A commercial real estate in Tier-1 Indian cities-especially for tech-centric workspaces.
This latest real estate deal highlights the growing relevance of India's commercial office market for multinational tech and retail firms looking to anchor backend operations. With Bengaluru, Hyderabad, and Chennai leading the charge, India's office space absorption is increasingly being driven by global firms' long-term digital infrastructure bets.
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