Bengaluru Bags ₹1,250 Cr GCC Expansion as Target Leases 8.3 Lakh Sq Ft

US retail giant Target leased more than 8.3 lakh sq ft of office space at Embassy Manyata Business Park in north Bengaluru (owned by Embassy Office Parks REIT) last year under a 10-year agreement valued at an estimated ₹1,250 crore, expanding the footprint of its India-based global capability centre (GCC).

Property registration documents reviewed by AIM show that Target Corporation India has signed a fresh lease for 8,31,126 sq ft across the ground floor and 10 upper floors of a newly developed building, Gulmohar L4, at Manyata Embassy Business Park in Nagavara, Bengaluru. 

The lease commenced on September 1, 2025, but the deed was registered in April 2026.

The office space has been leased from Manyata Promoters at a rental rate of ₹105 per sq ft per month, translating into a monthly rental outgo of about ₹8.73 crore. The agreement includes a security deposit of ₹52.36 crore and a 15% rent escalation every three years. Based on these terms, the total rental commitment over the lease tenure is estimated at around ₹1,250 crore.

Raja Seetharaman, Co-founder at Propstack, a real estate data analytics platform, said in a statement, “This underscores a growing trend among top-tier GCCs to scale up operations within familiar tech ecosystems.” He added that the multi-year commitment shows the enduring premium that dominant tech hubs like Bengaluru command for quality institutional real estate.

The transaction ranks among the largest office leasing deals signed by a multinational GCC in Bengaluru in recent months and underscores continued demand for large-format office campuses from global enterprises expanding their India operations.

Confirming the move, a Target in India spokesperson told AIM that this expansion is part of the company’s long-term real estate strategy to provide the right infrastructure and environmental support in the country.

“The new office space will be designed to provide a team member experience consistent with our existing facilities. It will offer the space and flexibility we need to meet the collaborative manner in which we work, and will be ready for occupation in late 2026,” the spokesperson added.

The new office is located adjacent to Target’s existing Bengaluru operations at Manyata Tech Park and is expected to support the Minneapolis-headquartered retailer’s growing technology, analytics, digital, and business services functions that serve its global business.

For Embassy REIT, the transaction adds to a series of large leasing deals that have helped maintain strong occupancy and leasing momentum across its portfolio. The REIT leased 6.4 million sq ft during FY26 and has reported continued demand from global occupiers, particularly GCCs.

The deal also highlights sustained demand for premium office space from multinational companies expanding their India-based capability centres. Bengaluru remains the country’s largest GCC market, attracting global corporations seeking technology talent and operational scale. According to a recent report by real estate consultancy Vestian, GCCs leased 31.8 million sq ft of office space across India’s top seven cities in 2024, accounting for 37% of total office absorption during the year.

[Note: The headline and content have been amended.]