State Street leases 2.1 lakh sq ft in Coimbatore's CHIL SEZ in major office space deal
In one of the largest office space transactions in Coimbatore in recent times, State Street Corporate Services Delhi Private Limited, a subsidiary of the Boston-based financial services giant
State Street Corporation
, has leased approximately 2.1 lakh square feet in Tower D of CHIL SEZ, Coimbatore. The lease has been executed with India Land Techpark Private Limited, the owner and developer of the tech park.
According to data sourced from real estate analytics firm Propstack, the lease was signed as a fresh agreement starting April 1, 2025, and covers floors 1 to 4 of the building. The total chargeable area leased amounts to 210,400 square feet at a monthly rental of ₹1.05 crore, implying a rent of ₹50 per square foot. The initial lease tenure is 10 years with a lock-in period, and includes a security deposit of ₹7.4 crore.
The rent escalation terms specify a 3% increase in February 2026, followed by a 5% hike every subsequent year, aligning with standard escalation practices in SEZ-grade assets across India. CHIL SEZ (Coimbatore Hi-Tech Infrastructure Limited) is among the most prominent SEZ developments in Tamil Nadu, strategically located and equipped with Grade-A infrastructure catering to IT/ITES tenants, it mentioned.
'This transaction reinforces the growing trend of global financial institutions expanding to Tier-2 cities to tap into the skilled talent pool and benefit from cost arbitrage,' said an industry expert. 'State Street's move reflects long-term confidence in Coimbatore's commercial ecosystem.'
Coimbatore, traditionally known for its textile and manufacturing prowess, has in recent years emerged as a preferred back-office and technology operations destination for multinational corporations. With robust infrastructure, a growing urban workforce, and relatively low real estate costs compared to metros like Bengaluru or Chennai, the city has drawn increasing interest from firms in BFSI, IT, and analytics.
The CHIL SEZ, in particular, has witnessed strong demand post-pandemic as companies adopt a hub-and-spoke real estate model. Experts say the average quoted rentals for Grade-A spaces in Coimbatore currently range between ₹40–₹55 per sq ft, depending on specifications and location, placing this deal near the higher end of the spectrum — an indication of premium quality and long-term commitment.
According to market data, Coimbatore saw gross office space absorption of over 1.2 million sq ft in 2024, with BFSI and IT/ITES accounting for over 60% of the leasing activity. Analysts expect 2025 to surpass those numbers, especially with continued interest from global capability centers (GCCs).
State Street Corporation is a global financial services company specializing in investment servicing, markets and financing, and investment management, primarily serving institutional investors. They have operations worldwide, including a significant presence in India, with offices in Bangalore and Mumbai. State Street's investment management arm is State Street Global Advisors (SSGA), which manages over $2.4 trillion in assets
With infrastructure improvements underway and the Tamil Nadu government's thrust on IT development in tier-2 cities, industry observers expect more such large-ticket leases in the coming quarters.
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