Bengaluru’s logistics and warehousing market recorded strong growth in the first half of 2026, with warehouse leasing rising 78% year-on-year to 3.1 million sq ft (MSF), according to Cushman & Wakefield’s H1 2026 Logistics & Industrial MarketBeat report.
Warehouse leasing was also 64% higher than in H2 2025, making Bengaluru the fastest-growing market among India’s top eight logistics and industrial markets. Overall logistics and industrial leasing stood at 4.4 MSF during H1 2026, up 63% from the previous half-year.
The strong demand came despite nearly 2 MSF of new Grade A warehouse supply being added during the period. Vacancy declined to 11% from 13%, indicating that occupiers continued to absorb new capacity.
Bengaluru’s western corridor remained the leading warehousing hub, accounting for 52% of total leasing, with Nelamangala and Dabaspete driving activity. The eastern submarket contributed 46%, led by Hoskote, while the northern and southern markets accounted for the balance.
Third-party logistics (3PL) companies were the largest source of warehouse demand, accounting for 58% of leasing. Manufacturing companies contributed 16%, e-commerce 15% and FMCG 8%.
The industrial segment also remained resilient, recording nearly 1.4 MSF of leasing in H1 2026. North Bengaluru accounted for 35% of industrial demand, led by Doddaballapur and KIADB Hardware Park at Devanahalli, while the western submarket contributed 28%.
Warehouse rentals in Bengaluru increased 4-5% annually during H1 2026, while industrial rentals rose 3-4%. Land prices also climbed 9-10% during the first half, underscoring continued investor and occupier interest in the city’s logistics and industrial corridors.