BNP Paribas takes 500,000 sq ft on 10-year lease at Mindspace REIT’s Chennai complex

BNP Paribas has signed a long-term lease for around 500,000 sq ft of office space at Mindspace Business Parks REIT’s One Radial complex in Chennai. The 10-year deal, spanning four floors, is among the city’s largest office leasing transactions this year and forms part of the bank’s consolidation of

French banking major BNP Paribas has signed a long-term lease for around half a million square feet of office space at Mindspace Business Parks REIT-owned One Radial commercial complex in Chennai. The 10-year deal, which covers four floors at the 2.6 million sq ft campus, is one of the city’s largest office leasing transactions this year.

Office rentals in the micro-market are currently estimated at Rs 90 per sq ft per month, with the BNP Paribas transaction understood to be in a similar range, according to people familiar with the deal. Based on these rentals, the bank’s total rental payout over the lease period is estimated at around Rs 550 crore, excluding rental escalations, rent-free periods, incentives or additional charges.

The transaction is part of the bank’s consolidation of its Chennai operations, where it previously occupied several smaller offices. Chennai is BNP Paribas’s second-largest office market in India by space occupied, after Mumbai, where it has offices in Bandra-Kurla Complex and Navi Mumbai.

India’s office property market remained resilient during January-September 2026, recording around 66 million sq ft of office absorption, up 8 per cent year-on-year. Global capability centres (GCCs) accounted for approximately 42 per cent of total absorption, according to a recent industry study. Banking and financial services companies are among the occupiers using these centres for technology, analytics, risk management and operations.

Chennai’s appeal among multinational companies is supported by relatively competitive operating costs, a skilled talent pool and improving infrastructure. Upcoming phases of the Chennai Metro and planned transportation upgrades are expected to improve connectivity across employment hubs and residential catchments over the next few years, further strengthening the city’s position for office occupiers.

ET’s email queries to BNP Paribas and Mindspace Business Parks REIT remained unanswered at the time of publication.