American retail giant Target Corporation's India arm has signed a significant office lease agreement for ₹1,250 crore over 10 years at Manyata Embassy Business Park in Bengaluru. According to transaction documents accessed by Propstack, the company has leased 8.31 lakh square feet of office space to house its India global capability centre (GCC). The fresh lease commenced on September 1, 2025, covering space from the ground floor to the 10th floor of the new Nagavara building owned by Embassy Office REIT. As per Propstack, this transaction ranks among the largest office leasing deals signed by a global capability centre (GCC) in the city.
Under the lease agreement, Target Corp will pay a monthly rent of around ₹8.7 crore for the 831,126 square feet of office space, translating to ₹105 per sq ft monthly rental rate. The company has also deposited ₹52.36 crore as security for the agreement. The lease includes a 15 per cent rent escalation every three years, as documented in the transaction documents registered in April 2026. Embassy Office REIT declined to comment on queries shared by Business Standard, though people familiar with the matter confirmed this as an expansion move by Target Corp India.
According to a recent report by real estate consultancy CBRE, GCCs led office leasing in India during the January-March 2026 period, contributing 9.1 million square feet (msf), or 44 per cent of the overall 20.7 msf absorbed during the period. Target Corp India already leases around 600,000 square feet in Manyata Park, making this expansion significant for the company's growing operations in the region. Geographically, Bengaluru remained central to GCC activity, capturing 48 per cent of overall office leasing. Latest data from JLL shows Bengaluru has emerged as India's top office market in Q1 2026, capturing 24.8% of national leasing volumes with exceptional 70% GCC share, the highest concentration in two years.
The lease covers the entire 11-floor block from ground to 10th floor of the new Nagavara building at Embassy Manyata Business Park. According to Propstack, this consolidation effectively secures an entire newly completed block, highlighting the retail giant's commitment to scaling operations within familiar tech ecosystems. Embassy Manyata Business Park is spread across 121 acres along Bengaluru's Hebbal-Airport corridor and comprises over 25 operational buildings, housing more than 60 multinational companies and serving as a workplace for over 100,000 professionals. The business park's leasable area of approximately 17.2 million sq ft positions it as one of Asia's largest integrated office ecosystems.
Sectorally, e-commerce led demand at 24 per cent, followed by banking, financial services and insurance (BFSI) and technology at 20 per cent each, and research, consulting and analytics at 19 per cent each, according to the CBRE report. The high demand for GCC space is being driven by Fortune 500 companies across these key sectors, reinforcing Bengaluru's position as the leading hub for GCC-led office demand in India. The multi-year commitment underscores the enduring premium that dominant tech hubs like Bengaluru command for quality institutional real estate.
