Cushman & Wakefield's H1 2026 Logistics & Industrial MarketBeat report indicated that Bengaluru remained a key logistics and warehousing hub as occupier demand supported strong leasing activity. Warehouse rentals rose four to five per cent annually and land prices increased nine to 10 per cent in H1 2026, while warehouse leasing surged 78 per cent year on year to three point one million square feet (mn sq ft) and rose 64 per cent compared with H2 2025.

The city's overall logistics and industrial market maintained momentum, with gross leasing reaching four point four mn sq ft in the first half of the year, representing a 63 per cent increase over H2 2025. The market absorbed nearly two mn sq ft of new Grade A warehouse supply during the period, and vacancy levels declined to 11 per cent from 13 per cent as occupier demand absorbed new capacity.

Bengaluru's western corridor remained the dominant warehousing destination, accounting for 52 per cent of total warehouse leasing during H1 2026, led by Nelamangala and Dabaspete. The eastern submarket accounted for 46 per cent driven by demand in Hoskote, while northern and southern submarkets contributed the remaining share. Third-party logistics companies emerged as the largest occupier segment, accounting for 58 per cent of warehouse leasing, followed by manufacturing at 16 per cent, e-commerce at 15 per cent and FMCG at eight per cent.

The industrial segment also remained resilient, recording nearly one point four mn sq ft of leasing in H1 2026. North Bengaluru accounted for 35 per cent of industrial demand, led by Doddaballapur and the KIADB Hardware Park at Devanahalli, while the western submarket contributed 28 per cent. Headline industrial rentals increased three to four per cent annually in H1 2026, reinforcing pricing momentum alongside sustained demand for logistics and industrial space.