# GCCs Drive Indian Office REIT Leasing as IT Demand Declines Global capability centers replace traditional IT services as primary drivers for Indian commercial real estate growth. - **Source:** [mint - industry](https://www.livemint.com/rss/industry) - **Published:** 2026-11-04 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/37d3cfaf-85c3-4b55-baf8-e50d4cac5de4 ## Shift in Occupier Dynamics India's office real estate investment trusts are witnessing a significant transformation in tenant profiles. While traditional IT services firms previously dominated the market, their demand has cooled. Global Capability Centres now serve as the primary engine for leasing, filling the void left by domestic IT firms and driving record-breaking absorption rates across major commercial hubs. ## Embassy REIT Leasing Surge Embassy Office Parks REIT reported a dramatic increase in GCC-led leasing activity. During the July-September quarter, GCCs accounted for 85% of total leasing, a sharp rise from 56% in the same period last year. This trend confirms that global entities are aggressively expanding their footprint in India, prioritizing high-quality, Grade A office spaces for operations. ## Brookfield and Mindspace Performance Brookfield India Real Estate Trust leased 1.6 million square feet in the September quarter, with GCCs representing 51% of that volume. Similarly, Mindspace Business Parks REIT saw its GCC leasing share climb to 52%, up from 48% two years ago, while IT services occupancy dropped to 21%. These figures highlight a clear preference for global corporate tenants. ## Strategic Focus on Value The expansion of GCCs is not merely about square footage but reflects a structural shift toward higher-value functions. These centers are increasingly focusing on engineering, research and development, artificial intelligence, and advanced analytics. This evolution signals that India is becoming a critical hub for global innovation, rather than just a destination for routine IT support services. ## Record Leasing Projections Industry data suggests that total office leasing in 2027 is poised to reach record highs, potentially exceeding the 83 million square feet recorded in 2025. Between January and September, gross leasing hit 61.06 million square feet, an 8.1% year-on-year increase. GCCs alone contributed 26.2 million square feet, demonstrating sustained momentum despite ongoing global geopolitical challenges. ## Resilience in Bengaluru Markets Bengaluru remains the preferred destination for global occupiers seeking scale and quality. Bagmane Prime Office REIT, backed by Blackstone, reported leasing 1.2 million square feet in a single quarter, with 96% attributed to GCCs. Half of this space was committed before construction completion, indicating high confidence and strong demand from multinational corporations for premium, well-located office assets. ## Occupancy and Market Valuation Higher demand has directly improved committed occupancy rates across major REIT portfolios. Knowledge Realty Trust saw occupancy rise to 94%, while Bagmane REIT reached 98.7% across its 16.6 million square foot portfolio. Collectively, the five office REITs and one retail-focused trust managed assets worth over ₹3.17 trillion as of June, reflecting robust financial health and investor confidence. ## Future Market Outlook The structural transition toward GCC-led demand provides a stable outlook for India's commercial real estate sector. As global firms continue to consolidate high-value functions in India, REITs are benefiting from longer lease tenures and higher rental premiums. This trend suggests that the market is maturing, moving away from volatile IT cycles toward more sustainable, long-term corporate growth. ## Sources covering this story - https://www.livemint.com/industry/gccs-power-office-reit-leasing-as-it-demand-cools-11793707463733.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._