Industrial, warehousing space leasing hits record high 37 mn sq ft: Report

Leasing of industrial and warehousing spaces across eight major cities rose 28 per cent to a record 37 million sq ft during the January-September period of this year, driven by high demand in Delhi-NCR, according to CBRE.

The total leasing across the top 8 Indian cities - Delhi-NCR, Bengaluru, Mumbai, Hyderabad, Chennai, Pune, Kolkata, and Ahmedabad - stood at 28.8 million sq ft in the corresponding period of the 2024 calendar year.

Real estate consulting firm CBRE, in its latest 'India Market Monitor Q3 2025 Industrial & Logistics' report, highlighted that the Delhi-NCR accounted for the largest share of total leasing activity at 11.7 million sq ft, followed by Bengaluru at 5.7 million sq ft and Hyderabad at 4.6 million sq ft.

The three cities accounted for a cumulative share of 59 per cent.

Mumbai and Kolkata registered space take-up of 4.2 million sq ft and 3.8 million sq ft, respectively.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa at CBRE, said the demand is largely led by the expansion of Third-Party Logistics (3PL) providers and the accelerated deployment of quick commerce.

"Companies are increasingly focused on supply chain optimisation and resilience, driving a mandate for sophisticated, high-specification Grade A assets that support automation and reduce last-mile friction," he added.

Ram Chandnani, Managing Director, Advisory & Transaction Services, India at CBRE, said this momentum is expected to continue as businesses focus on optimising supply chains and expanding their footprints.

During January-September 2025, the new supply stood at 23.8 million sq ft as institutional investor-backed developers continued to expand their footprint.

Bengaluru, Chennai, and Mumbai together accounted for 62 per cent of the total new supply in the first nine months of this year, the consultant said.