Eicher Motors leases 4 lakh sq ft industrial space in Chennai for ₹74 crore

The seven-year lease at Casagrand Industrial Park comes as India's logistics and industrial real estate sector records its strongest first-half leasing performance

Auto major Eicher Motors has leased around 4 lakh square feet of industrial space in Chennai's Casagrand Industrial Park for a total rental outlay of about Rs 74 crore over a period of seven years.

 

According to transaction documents accessed by Propstack, the company will pay rent for a chargeable area of around 4 lakh square feet at a monthly rental rate of Rs 21.06 per square foot.

 

The lease agreement will be valid for seven years, with the starting monthly rent at Rs 82.45 lakh.

 

According to the documents, the lease provides for a rent escalation of 3.5 per cent annually after the completion of the first two years.

 

 

The deal comes at a time when India's logistics and industrial real estate sector recorded its strongest-ever first-half leasing performance across Tier-I cities in 2026.

 

According to a report by Cushman & Wakefield, gross leasing in this segment grew 18 per cent year-on-year (Y-o-Y) to 36.2 million square feet (msf), as manufacturing-led demand gathered pace despite continued global trade and geopolitical uncertainties.

 

Warehousing accounted for the bulk of demand, with 24.3 msf, or 67 per cent of total leasing.

 

Industrial leasing, meanwhile, emerged as the key growth driver, rising 36 per cent Y-o-Y to nearly 12 msf.

 

Among sectors, the automobile industry nearly doubled its leasing activity from a year earlier to 4.8 msf, accounting for 13 per cent of total demand.

 

"Nearly two-thirds of the sector's leasing was for industrial facilities, reflecting investments across the electric vehicle supply chain and expanding manufacturing operations," the Cushman & Wakefield report said.

 

At the city level, while Delhi-NCR emerged as the largest logistics and industrial market, Chennai recorded the second-highest demand.

 

Chennai accounted for 17 per cent of total leasing demand across India's Tier-I markets, recording 6.1 msf of leasing activity in H1 2026. This represented a 31 per cent Y-o-Y increase from the 4.4 msf recorded in the city in H1 2025.