Embassy Office Parks REIT has leased 830,000 sq ft of office space to Target Corp. India Pvt. Ltd, part of US-based retail major Target Corp., for its global capability centre at Embassy Manyata Business Park in north Bengaluru, in one of the largest GCC deals in recent times.
Target will pay around ₹1,250 crore over a 10-year rental tenure, including a deposit of ₹52.36 crore. There is also a rental escalation of 15% every three years, according to lease registration documents accessed by Propstack, a real estate data analytics platform. Target will occupy 11 floors in a new building named ‘Gulmohar’ in the business park.
The deal is significant as it indicates a massive expansion by Target, which already occupies around 600,000 sq ft in Embassy Manyata.
“Target’s massive 8.3 lakh sq ft lease at Embassy Manyata Business Park underscores a growing trend among top-tier global capability centers (GCCs) to scale up operations within familiar tech ecosystems. By securing an entire newly completed 11-floor block, the retail giant is effectively consolidating and expanding its footprint inside the campus,” Raja Seetharaman, co-founder Propstack said.
“This multi-year commitment, valued at an estimated ₹1,250 crore over its tenure, highlights the enduring premium that dominant tech hubs like Bangalore command for quality institutional real estate,” added Seetharaman.
An Embassy REIT spokesperson didn't respond to queries. Target could not be immediately reached.
GCC demand powers office leasing
In financial year 2026, Embassy REIT leased 6.4 million sq ft across 86 deals, and reported a 15% year-on-year jump in net operating income (NOI) to ₹3760 crore, driven by strong GCC-led demand.
GCCs led office space leasing in the January-March period, clocking a record 9.1 million sq ft and contributing 44% of overall absorption of 20.7 million sq ft, property advisory CBRE India said in April. Demand remained concentrated in key hubs like Bengaluru, Delhi-National Capital Region, and Mumbai, while being driven largely by Fortune 500 firms and U.S-based companies.
A clear preference for green-certified, high-quality assets and the rise of mid-market and nano GCCs highlight the market’s evolving, innovation-led growth trajectory, CBRE said. In the March-ended quarter, Bengaluru, which houses the highest number of GCCs in India, saw 4.4 million sq ft of GCC leasing.
As occupiers adopt AI-ready workspace strategies and GCCs evolve into multi-functional innovation hubs, GCC-led leasing momentum is expected to remain healthy through 2026, CBRE noted.