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Enterprise cloud applications company Workday has leased approximately 1.94 lakh sq ft of office space at Millenia Business Park in Perungudi, Chennai, to establish a global capability centre (GCC). The transaction, structured as a sublease with Cowrks and backed by Brookfield Properties, is among the larger single-occupier office commitments in the city in recent quarters. The lease is divided into two phases, combining managed workspace and conventional leasing formats, with varying rental structures. The development highlights sustained demand for Grade A office assets in Chennai, particularly from global technology firms, supported by favourable state policies and the city's growing prominence as a GCC hub.
Workday India Private Limited has leased approximately 1.94 lakh sq ft of office space at Millenia Business Park in Perungudi, Chennai, to establish a global capability centre (GCC), with the transaction formalised in recent weeks through a sublease arrangement involving Cowrks and Brookfield Properties. The deal represents one of the larger enterprise office commitments recorded in the city's commercial market in recent quarters. Advertisement
The lease has been structured in two distinct phases with different commercial formats. In the first phase, the company has taken around 1 lakh sq ft as a managed office space across upper floors of the building, with an all-inclusive rental model covering base rent, common area maintenance, operational expenses, and related charges. The second phase comprises approximately 94,000 sq ft under a conventional lease structure, where the tenant will undertake fit-outs independently at a lower base rental.
According to property registration documents, the overall leased area is spread across multiple floors within the business park campus. The agreement has been structured over a multi-year tenure, with phased commencement timelines to align with operational requirements. The transaction also includes provisions for rental escalation and additional commitments towards fit-out costs over the initial years of occupancy.
The choice of Chennai, particularly the Perungudi micro-market, reflects continued occupier preference for established IT corridors with Grade A infrastructure and connectivity. Industry sources indicated that favourable return-to-office trends and supportive state-level policies, including incentives linked to employment generation, have contributed to the city's attractiveness for global capability centres.
The scale of the leased space suggests that the facility is intended to function as a significant operational hub rather than a satellite office. Market estimates indicate that a footprint of this size could accommodate between 1,500 and 2,500 employees, depending on workplace density and operational requirements.
The transaction also reflects a broader trend of large-format leasing by multinational firms seeking to expand engineering, product development, and support operations in India. Chennai has emerged as a key destination for such investments, with global capability centres accounting for a growing share of office absorption in recent periods.
Institutionally owned business parks such as Millenia Business Park, backed by global investors, continue to attract such commitments due to their scale, amenities, and ability to support phased expansion. In this case, the agreement also includes a right of first refusal for additional space within the campus, indicating potential for future expansion depending on operational growth.
The leasing activity underscores sustained momentum in Chennai's commercial real estate market, where demand from technology-led occupiers continues to drive absorption of large office spaces. As companies consolidate and expand their India operations, such transactions are expected to support occupancy levels and rental stability across key micro-markets in the city.
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