Many mid-size IT firms, including startups, have given up real estate spaces across major cities after the Covid-19 outbreak forced them to downsize and take a relook at real estate costs.
The company, part of the Larsen & Toubro group, occupies a total of 500,000 sq ft in Hardy Tower and Neville Tower in TRIL Infopark in Ramanujan IT City, and had signed a long-term lease during 2014-15.
“As part of cost restructuring, Mindtree had given up the space in Neville tower as the lock-in expired. They had an option to either release it or surrender,” the people said.
Mindtree has a major presence across Hyderabad, Bengaluru and Chennai and occupies around 1.8 million sq ft of office space in various locations, including in Pune and Bhubaneswar.
“The firm has around 4,500 employees seating out of the Chennai facilities and has retained the remaining space,” said one of the people.
“Mindtree has made several strategic investments in multiple cities in India. The office space realignment in Chennai is part of routine infrastructure rationalization efforts. Mindtree continues to grow in Chennai and remains committed to the region,” the Bengaluru-based software services exporter said.
Mindtree currently has over 21,000 employees and delivers digital transformation and technology services to 2,000 clients across the world.
According to property consultancy JLL, increased office space consolidation and optimisation strategies of corporate occupiers resulted in subdued net absorption levels, which could not keep pace with new completions. This resulted in overall vacancy increasing from 13.1% in the second quarter of calendar year 2020 to 13.5% in the third quarter.