3PLs Drive One-Third of India Warehouse Leasing as Demand Surges 26%

3PLs Drive One-Third of India Warehouse Leasing as Demand Surges 26%

India’s industrial and warehousing market continued its rapid expansion through the first nine months of 2026, with third-party logistics providers remaining the country’s largest source of warehouse demand.

According to new data from Colliers India, Grade A industrial and warehousing leasing across India’s eight largest markets reached 33.3 million square feet between January and September, an increase of 26% compared with the same period last year.

3PL companies accounted for more than 11 million square feet of that activity, representing roughly one-third of total leasing.

Delhi NCR and Chennai remained the country’s largest warehouse markets, together accounting for 47% of overall demand.

3PLs Remain India’s Largest Warehouse Occupier

Third-party logistics providers continued to lead warehouse leasing during the first nine months of the year, taking more than 11 million square feet of Grade A space.

The segment accounted for approximately one-third of all industrial and warehousing demand tracked by Colliers India.

Engineering companies followed with 6.6 million square feet and approximately 20% of overall demand.

Ecommerce demand also continued to expand, with leasing from ecommerce companies increasing nearly 30% year over year.

The automotive sector recorded the fastest growth among major occupier categories, with warehouse and industrial space uptake rising 70%.

The results reinforce a trend Colliers India identified earlier in 2026, with 3PLs, engineering companies, and ecommerce businesses driving much of India’s demand for modern logistics facilities.

Delhi NCR and Chennai Account for Nearly Half of Demand

Delhi NCR remained India’s largest Grade A industrial and warehousing market during the first nine months of 2026.

The region recorded approximately 9.3 million square feet of leasing, up 26% from the same period in 2025.

Chennai followed with 6.4 million square feet, representing annual growth of 25%.

Together, the two markets accounted for 47% of total leasing across the eight cities tracked by Colliers India.

Several major logistics clusters continue to drive activity within these markets. Farukh Nagar and the NH 48 corridor in Delhi NCR, along with Bhiwandi in Mumbai, collectively represented almost one-third of year-to-date leasing.

Pune and Bengaluru Record Rapid Growth

While Delhi NCR and Chennai remain the largest markets, Pune and Bengaluru recorded some of the fastest growth during 2026.

Pune reached 3.4 million square feet of leasing during the first nine months of the year, up 70% from approximately 2 million square feet during the same period in 2025.

Bengaluru reached 4.5 million square feet, representing a 61% annual increase.

Growth accelerated even further during the third quarter.

Pune’s Q3 leasing increased 350% year over year, while Bengaluru recorded a 150% increase.

The two cities combined accounted for close to 8 million square feet of warehouse and industrial demand during the first nine months of the year.

Q3 Warehouse Leasing Jumps 63%

India’s warehouse market accelerated considerably during the third quarter.

Grade A leasing reached 11.4 million square feet during Q3, up 63% from 7 million square feet during the same quarter last year.

Delhi NCR led the quarter with 3.4 million square feet of demand, followed by Chennai at 2.3 million square feet and Bengaluru at 2 million square feet.

Colliers India described Q3 as the strongest quarter for industrial and warehousing leasing in recent years.

The firm now expects India’s Grade A industrial and warehousing leasing to reach approximately 40 million to 45 million square feet for the full year.

Large Warehouse Deals Remain a Major Part of the Market

Large warehouse transactions also continue to play an important role in India’s logistics real estate market.

Deals exceeding 200,000 square feet accounted for approximately 37% of total leasing during the first nine months of 2026.

3PL and ecommerce companies represented approximately 58% of those large transactions.

Delhi NCR recorded the highest level of large-scale warehouse deals, followed by Chennai.

The concentration of larger leases among 3PLs and ecommerce operators highlights the scale at which logistics networks are expanding across the country.

For logistics providers, those facilities can support multi-client operations, regional distribution networks, and increasingly complex ecommerce fulfillment requirements.

34.5 Million Square Feet of New Supply Added

Developers have continued adding warehouse capacity alongside rising occupier demand.

Approximately 34.5 million square feet of new Grade A industrial and warehousing space was completed across the eight markets between January and September, up 19% year over year.

Delhi NCR, Chennai, and Mumbai together accounted for 55% of new supply.

Pune recorded one of the sharpest increases, with 4.5 million square feet of new supply added during the first nine months of the year, more than double its 2025 level.

Ahmedabad also saw completions rise sharply, reaching 3.9 million square feet.

Supply slightly exceeded demand during the period, pushing overall vacancy to approximately 16% by the end of Q3.

Average rents remained relatively stable across the major markets, although Colliers India reported rental growth in several high-demand logistics clusters.

India’s 3PL Market Continues to Drive Warehouse Expansion

The latest figures reinforce the growing role of outsourced logistics in India’s industrial real estate market.

3PL providers are leasing more Grade A space than any other occupier category, while ecommerce, automotive, and manufacturing companies are simultaneously increasing their warehouse requirements.

That combination is supporting both large logistics hubs such as Delhi NCR and Chennai and faster-growing markets including Pune and Bengaluru.

For global 3PLs, ecommerce fulfillment providers, and warehouse operators evaluating India, the data also highlights where demand is becoming concentrated.

Delhi NCR remains the largest market by overall leasing, while Chennai continues to command significant logistics activity. Bengaluru and Pune, meanwhile, are showing some of the strongest growth rates in the country.

With 33.3 million square feet already leased through September, Colliers India expects the market to finish 2026 with between 40 million and 45 million square feet of total Grade A industrial and warehousing leasing.

About Colliers

Colliers is a leading diversified professional services and investment management company operating across 68 countries. With a workforce of more than 22,000 professionals, the firm provides expert real estate and investment advice to commercial occupiers, owners, and investors globally.

Source: PR Newswire announcement, October 22, 2026