Beyond the Box

The New Engine of India’s Economy: Drivers of 3PL Real Estate Demand

India's third-party logistics (3PL) sector has maintained its position as the largest warehousing occupier since 2021, with absorption share ranging between 28% and 42%.

• The sector recorded cumulative gross absorption of over 110 million sq.ft. during 2021–H1 2026, with Grade A facilities increasing from 50% to 57% of total absorption.
• Average transaction sizes grew 25%, reaching 125,000 sq.ft. in 2025
• The top 3PL players collectively manage over 125 million sq.ft. of warehousing space in India

• Inventory and warehouse management remains the most outsourced logistics function
• Rising warehouse rents and real estate costs emerged as the primary cost pressure
• Grade A facilities are frequently required by end clients, though availability remains challenging
• Strong WMS and TMS capabilities are critical in winning large and premium contracts
• Sustainability now features in nearly two-thirds of RFPs, becoming part of vendor selection rather than a supplementary requirement
• Multi-user warehousing models are gaining traction as occupiers seek greater flexibility and scalability

   

JLL delivers end-to-end integrated supply chain and logistics real estate solutions that optimize operational efficiency, reduce costs, and enable strategic growth across the entire facility lifecycle—from site selection and lease negotiation through operational management and portfolio optimization.

Connect with our Industrial & Logistics team to explore how JLL can support your 3PL growth strategy.