Nasdaq-listed IT software firm Cognizant has renewed its lease for 6.27 lakh sq ft office space in Pune spread across two blocks for five years at a rent of Rs 3.35 crore per month, documents accessed by Propstack showed.
The company has renewed its lease for four floors—7, 8, 9 and 10— in Quadron Business Park Block 4. The leased area is 2.60 lakh sq ft and the rent per square foot is Rs 48.09 a month, taking the rent for these floors to Rs 1.25 crore, the documents showed. The lease was renewed from October 2021 to October 2026, but was registered on April 28 this year.
The company has also leased space in Block 2 in the business park, taking up the basement, lower ground, first, second, third and fourth floors, coming to a total of 366,861 sq ft for a rent of Rs 57.33 per sq ft per month. This brings the monthly rent to Rs 2.10 crore, the documents showed.
An email has been sent to Cognizant.
On May 4, the company had said that it will give up 11 million square feet of office space accommodating 80,000 seats, primarily in large Indian cities, as it looks to rationalise workspace in a post-pandemic hybrid work environment and reduce its annual real estate outgo.
“This renewal is significant considering Cognizant’s announcement that it’ll give up 11 million square feet of space. Cognizant plans to reduce annual real estate costs by $100 million over the next three years. The decision by Cognizant to reduce real estate space is likely to lead to an increase in the availability of office space and put downward pressure on rents. However, this decision to renew the lease is a sign of the company’s commitment to the city. It’s a positive development for the city and will help retain and create jobs,” said Raja Seetharaman, co-founder of Propstack.