Flexible Workspace Provider IndiQube Takes 150,000 Sq Ft on Lease in Chennai
The Perungudi neighbourhood of Chennai is home to more than 1.5 lakh square feet of office space leased by IndiQube Spaces Ltd, an operator of flexible workspaces. From SRH Mota Star Promoters Pvt Ltd., the business has leased 151,462 square feet in the SRH Experience Tower. Commencing on March 9, 2026, the transaction involves a new lease. Covering the ground floor and all floors up to the eleventh level, including the 2B floor, the leased premises extend across numerous levels of the building.
A monthly rental of INR 64 per square foot was agreed upon when the deal was signed. This works out to almost INR 96.6 lakh in rent each month. It is expected that IndiQube will incur a total rental commitment of about INR 235 crore throughout the 15-year lease lifespan, including annual escalations, based on the agreed rate.
Specifics of the IndiQube's Deal
Rentals are subject to a 15% increase every three years per the terms of the lease. As a security measure for the transaction, IndiQube has also put down around 7.73 crore Indian rupees. Technology businesses, Global Capability Centres (GCCs), and operators of flexible workspaces have boosted demand for office space in Perungudi, which is situated along the Old Mahabalipuram Road (OMR) corridor in Chennai.
The deal closes at a time when flexible office solutions are in high demand from both established businesses and new ventures, and managed workspace providers are responding by rapidly expanding into new major office markets. Demand from occupiers in the information technology and tech sectors has kept leasing activity in Chennai stable over the last several quarters.
|
Some Interesting Facts of the Story |
|
1.IndiQube’s Chennai footprint represents one of its
largest regional markets in South India. 2.Long-term lease agreements with periodic
escalations are becoming common as workspace providers secure premium assets
in key cities. 3.The deal highlights the continued shift toward
flexible and hybrid workplace solutions across corporate India. |
IndiQube Presence in India and its Market Revenue
About 9.66 million square feet (msf) of IndiQube space were available in 17 cities across India as of March 2026, with 215,000 seats spread across 130 centers. With a 37% YoY increase, its revenue for FY26 was INR 1,469 crore. Profit after taxes for the same time period for the company jumped 145% year over year to INR 125 crore. With 17 locations covering 1.20 msf and 27,000 seats in March 2026, IndiQube was a major player in Chennai. With a year-over-year growth rate of 35.2%, the company's revenue in the fourth quarter surpassed INR 400 crore.
On the other hand, value-added services now account for 19.2% of its income, which is the largest percentage among listed operators. At the end of FY26, India's flex office space industry was on its best commercial footing ever, surpassing 100 msf. This impressive performance is characterized by significant revenue growth, improving profitability, maintaining occupancy levels, and increased enterprise usage. Sector capacity is expected to reach 140-145 msf by FY28, according to ratings agency Crisil.
|
Quick Shots |
|
•IndiQube has leased 151,462 sq ft of office space
in Chennai’s Perungudi area. •The space is located in SRH Experience Tower and
leased from SRH Mota Star Promoters Pvt Ltd. •The lease commenced on March 9, 2026. •The leased area spans the ground floor and multiple
levels up to the 11th floor. |
