Leasing activity touched 11 million sq ft, up by 22% from the March quarter of 2025, said a report by real estate services firm Colliers India. Ecommerce, 3PL and automobile players accounted for a significant share of absorption across the top eight cities, it said.
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Some of the large firms that have leased space since 2025 include Amazon, Blinkit, Scootsy Logistics, Reliance, Honda and DHL.
“Demand from 3PL, ecommerce and automobile players remained firm during Q1 2026, as occupier diversification continued to gain momentum,” said Vijay Ganesh, managing director, industrial and logistics services, Colliers India. “Although the long-term fundamentals of India’s industrial and warehousing market remain intact, developers are likely to adopt a measured approach with respect to supply additions in the near term amid the prevailing geopolitical crisis and supply chain disruptions.
Nevertheless, continued policy support to enhance domestic manufacturing and logistics capabilities will remain pivotal in navigating potential downside risks.”
In Q1 of 2026, ecommerce remained a key growth engine, with leasing in this category rising to 4.7 million sq ft, doubling its share from a year ago to 13%. The ecommerce and automobile segments collectively accounted for about 32% of demand, said Colliers.According to the report, the rapid rise of quick commerce is reshaping demand patterns. Platforms such as Blinkit, Zepto and Instamart are scaling up dark store networks and micro-fulfilment centres to meet 10–15 minute delivery timelines.
This has accelerated leasing of smaller, last-mile warehouses within dense urban clusters, complementing large distribution hubs and intensifying demand across consumption-driven micro-markets.
Industrial demand also remained resilient, supported by ecommerce-led supply chains and logistics expansion. 3PL players anchored demand at 3.5 million sq ft—about a third of total leasing—growing 1.8 times year-on-year, driven by outsourcing and supply chain modernisation.
Large deals of over 200,000 sq ft accounted for 48% of leasing at 5.3 million sq ft. Of this, ecommerce firms accounted for a 34% share, followed by 3PL and automobile players.
Supply additions rose by 33% y-o-y to 12.5 million sq ft, with Delhi-NCR and Bengaluru accounting for nearly half of it. Vacancy levels increased by 360 bps to 16.7%, while rentals remained largely stable, Colliers said.
N Amrutesh Reddy, managing director of NDR Warehousing, said the company is seeing a sharp uptick in demand from ecommerce and 3PL firms, particularly in key strategic hubs such as Delhi-NCR, Mumbai and Bengaluru.
“3PL players are likely to continue anchoring demand, while ecommerce leasing is set to accelerate further, driven by rising online consumption, tighter delivery timelines and the steady expansion of distribution networks,” he said.
However, the West Asia crisis remains a key factor, with potential implications for the Indian economy and the industrial and warehousing sector over the next few quarters.
Experts said that despite near-term uncertainties, structural drivers such as rising ecommerce penetration, logistics formalisation and the policy push towards manufacturing are expected to sustain demand.
