GCC Surge: MNCs Ink Mega Leases, Indian Law Firms Face M&A-Style Workload

India's Global Capability Centre (GCC) boom is keeping the country's law firms busier than ever, as multinational companies establish larger office campuses with extended lease tenures across major cities.

Foreign companies are committing to 15-30 year leases for million-square-foot facilities in Bengaluru, Hyderabad, Mumbai, the National Capital Region (NCR), and Chennai. Leading legal practices such as Cyril Amarchand Mangaldas, Khaitan & Co, JSA Advocates & Solicitors, and Nishith Desai Associates are increasingly drawn into these complex transactions.

Strategic Hubs Drive Real Estate Demand

What were once routine commercial leases are now evolving into M&A-style mandates. These involve detailed land and regulatory due diligence, construction and zoning approvals, and intricate long-term risk allocation. Cyril Shroff, managing partner at Cyril Amarchand Mangaldas, noted a clear rise in the number, size, and tenure of GCC-led built-to-suit and large office leasing deals in India.

"GCCs are no longer back-office operations but long-term strategic hubs for technology and global operations," Shroff stated. "As a result, real estate commitments are larger, lease tenures are longer, and campus developments are more customised and future-ready. This has fundamentally changed the nature of legal work in this space."

His firm advised GCC clients on leasing over 5 million square feet in the past year alone, including JPMorgan on what is described as Asia's largest GCC lease: a 1.3-million-sq-ft built-to-suit campus in Mumbai.

Legal Work Evolves from Leases to Mandates

Firms like Nishith Desai Associates now guide GCC clients through the entire transaction lifecycle. This includes structuring India entities legally, tax-wise, and regulatorily, alongside setting up operations. Aaron Kamath, lead for technology, digital, and commercial law practice at Nishith Desai Associates, observed a distinct increase in the scale and strategic importance of these deals, with 10-20 year leases and large campuses becoming common.

Law firm involvement now begins well before a lease is signed. Advisers assist multinational clients with structuring their India presence, inter-company funding under foreign exchange and tax rules, state-level incentives, and compliance mapping. Intensive land and regulatory due diligence, including title searches, past ownership and litigation reviews, zoning verification, and environmental approvals, are critical for ensuring long-term security.

Outlook for GCC Growth and Investment

India is currently home to over 1,800 GCCs, generating $64.6 billion in revenue in 2024, with projections from Nasscom to surpass $110 billion by 2030. These centres have transitioned from back-office processing to strategic hubs for engineering, AI, cybersecurity, and financial services, escalating legal complexity.

Lease agreements have expanded significantly, from 20-25 pages two decades ago to over 100 pages today, incorporating detailed technical schedules and annexures. Negotiations now extend beyond rent and lock-in periods to include renewal rights, exit options, expansion capabilities, rent escalation limits, change-in-law protection, construction quality, and dispute resolution mechanisms.