Bengaluru Warehouse Leasing Surges in H1 2026
WAREHOUSING & LOGISTICS

Bengaluru Warehouse Leasing Surges in H1 2026

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.

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.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code