Target Corporation India Private Limited has expanded its footprint in Bengaluru by leasing 8.31 lakh sq ft of office space at Embassy Manyata Business Park, owned by Embassy REIT, under a 10-year agreement valued at approximately ₹1,250 crore. According to lease registration documents accessed by Propstack, the company secured the ground floor and 10 upper floors of a newly completed 11-floor block named 'Gulmohar', with the lease commencing on September 1, 2025. The transaction ranks among the largest office leasing deals signed by a global capability centre (GCC) in the city, with Target paying a monthly rental of ₹105 per sq ft, translating into a rent outgo of approximately ₹8.7 crore per month. The agreement includes a 15% rental escalation every three years, with the company also paying a security deposit of ₹52.36 crore.
This lease represents a significant expansion by Target, which already occupies around 600,000 sq ft in Embassy Manyata. As reported by Propstack, the deal underscores a growing trend among top-tier global capability centers to scale up operations within familiar tech ecosystems. By securing an entire newly completed 11-floor block, the retail giant is effectively consolidating and expanding its footprint inside the campus. According to Propstack co-founder Raja Seetharaman, "This multi-year commitment, valued at an estimated ₹1,250 crore over its tenure, highlights the enduring premium that dominant tech hubs like Bengaluru command for quality institutional real estate."
In financial year 2026, Embassy REIT leased 6.4 million sq ft across 86 deals, and reported a 15% year-on-year jump in net operating income (NOI) to ₹3,760 crore, driven by strong GCC-led demand. According to CBRE India, GCCs led office space leasing in the January-March period, clocking a record 9.1 million sq ft and contributing 44% of overall absorption of 20.7 million sq ft. In the March-ended quarter, Bengaluru saw 4.4 million sq ft of GCC leasing, with demand remaining concentrated in key hubs like Bengaluru, Delhi-National Capital Region, and Mumbai, driven largely by Fortune 500 firms and U.S-based companies.
A clear preference for green-certified, high-quality assets and the rise of mid-market and nano GCCs highlight the market's evolving, innovation-led growth trajectory. As occupiers adopt AI-ready workspace strategies and GCCs evolve into multi-functional innovation hubs, GCC-led leasing momentum is expected to remain healthy through 2026, according to CBRE. The multi-year commitment by Target demonstrates the sustained demand for quality institutional real estate in dominant tech hubs like Bangalore, as noted by Propstack co-founder Raja Seetharaman. Bengaluru has emerged as India's top office market in the January-March quarter of 2026 with capturing 24.8% of national leasing volumes, followed by Mumbai with 19.5% share, according to a report by JLL.
