Delhi-NCR Leads India’s 3PL Leasing with 25% Market Share: CBRE

Delhi-NCR has taken the lead as the country’s largest third-party logistics (3PL) hub, cornering 25% of total leasing activity in the industrial and logistics (I&L) sector since 2021, according to a new report by CBRE South Asia Pvt. Ltd. Mumbai followed closely with a 24% share, while Bengaluru accounted for 16%. Together with Chennai, Kolkata, and Hyderabad, the top six cities made up nearly 70% of the total 3PL leasing activity during 2021 through the first half of 2025.

The findings are part of CBRE’s latest report, Built to Scale: How 3PL is Solving India’s Supply Chain Puzzle, which underlines the sector’s growing importance in shaping India’s logistics real estate market. 3PL players, specialized firms managing end-to-end supply chain operations for clients have emerged as the single largest demand driver for warehousing and logistics space in the country. Between 2021 and 2024, they accounted for 40–50% of the total leasing activity, while in the first half of 2025 alone, their share stood at over 30%.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, attributed Delhi-NCR’s lead to its geographical positioning, strong infrastructure backbone, and the rapid growth of e-commerce. “Delhi-NCR’s strategic location, robust infrastructure, and thriving e-commerce sector has made it an important hub for the industrial & logistics sector,” he noted.

The region’s connectivity to key consumption centers across North India and proximity to major highways and freight corridors has further cemented its appeal for logistics operators seeking scale.

Rise of Tier-II and III Cities
However, CBRE’s analysis points to a parallel growth story unfolding outside metros. Tier-II and III cities, buoyed by surging consumption patterns and significantly lower land costs, are emerging as attractive alternatives for 3PL firms. “The rising consumption in these cities, coupled with lower land costs, is likely to encourage more 3PL firms to expand beyond metros and build localised hubs closer to centres of consumption,” Magazine added.

This decentralization marks a strategic shift in India’s logistics landscape, where smaller cities are beginning to capture the attention of companies eager to stay closer to end consumers and reduce operational costs.

Shift Toward Asset-Light Models
A key finding of the report is the growing preference among 3PL companies to remain asset-light. More than 60% of India-based 3PL players surveyed said they would prefer leasing space in multi-tenanted buildings over the next 24 months, compared to investing in their own facilities. Build-to-suit development was favoured by 28% of respondents, while only 22% preferred purchasing existing assets.

Explaining this trend, Ram Chandnani, Managing Director, Leasing Services, CBRE India, said: “This strategy helps the companies to scale faster and lower their costs. Multi-tenanted buildings allow them to lower the upfront costs, use proven infrastructure, and diversify the risk from concentration, making them ideal for companies navigating market demand.”

The model enables 3PL players to respond quickly to shifts in demand arising from e-commerce and quick commerce growth, while also benefiting from the government’s infrastructure push.

Technology Driving Warehousing Evolution
The report also underscores a pronounced shift toward technology-enabled, future-ready warehousing solutions. Around 76% of surveyed 3PL companies said they are adopting warehouse management software to streamline operations. In addition, firms are increasingly integrating advanced technologies such as Internet of Things (IoT) sensors, conveyor and sortation systems, and Goods-to-Person picking systems.

Emerging innovations like Automated Storage and Retrieval Systems (AS/RS), robotic arms, and cobots are also gaining traction as firms look to cut errors, improve throughput, and enhance inventory management efficiency.

Dominance in Big-Box Leasing
During 2021 through the first half of 2025, 3PL companies remained the primary drivers of “big-box” warehousing. These are the spaces exceeding 100,000 sq. ft., both in terms of volume and value. This reflects the sector’s growing appetite for scalable, future-ready warehousing solutions aligned with the rising demand from e-commerce, retail, and manufacturing.

A Future-Ready Ecosystem
According to CBRE, the evolution of India’s 3PL sector highlights its central role in building the backbone of modern supply chains. By combining asset-light strategies, expansion into non-metro markets, and adoption of automation, 3PL companies are positioning themselves to power India’s transition into a global trade and manufacturing hub.

As Chandnani summed up, “This evolution underscores the sector’s pivotal role in building future-ready supply chains that will power India’s journey towards becoming a global trade and manufacturing hub.”

With both metropolitan hubs and smaller cities emerging as focal points, and with digital technologies reshaping warehouses, India’s logistics landscape appears set for a period of sustained transformation, one where 3PL companies continue to play the leading role.