India warehousing leasing jumps 15% to 19.3M sq ft in Q1 2026; retail surges 115%

Knight Frank data shows India's eight major warehousing markets logged 19.3M sq ft of leasing in Jan-Mar 2026, up 15% YoY. Retail occupiers led the charge with 115% growth, while 3PL rose 64%. E-commerce demand cratered 71% and FMCG fell 87%. Mumbai dominated at 7.4M sq ft (+66%); Kolkata spiked 440%. Vacancy held at 11.1% as rentals climbed across all markets.

— FiledThu, 14 May, 2026, 15:00 IST·First seen Thu, 14 May, 2026, 22:46 IST·Source ET Small Business

What happened

Knight Frank India · India warehousing leasing rose 15% YoY to 19.3M sq ft in Q1 2026, led by manufacturing and 3PL. Retail leasing surged 115%, but e-commerce

Key facts

  • 19.3 million sq ft
  • +15% YoY
  • Mumbai 7.4M sq ft +66%
  • Kolkata +440%
  • 3PL +64%
  • Retail leasing +115%
  • E-commerce -71%
  • FMCG -87%
  • vacancy 11.1%
  • Grade A 46%
  • Pune Rs 28.5/sq ft
  • Mumbai Rs 26/sq ft

Why this matters

Kolkata's 440% spike and Mumbai's 7.4M sq ft dominance highlight asymmetric M&A and JV opportunities in regional warehousing platforms with retail-anchored portfolios.