Delhi-NCR Emerges as Largest 3PL Hub With 25 per cent Share Of Total I&L Leasing Since 2021

New Delhi, September 25, 2025: Real estate consulting firm CBRE South Asia Pvt. Ltd. has highlighted the emergence of Delhi-NCR as the largest third-party logistics (3PL) hub in the country, accounting for a quarter of total leasing activity by the industrial and logistics (I&L) sector since 2021. CBRE’s latest report, ‘Built to Scale: How 3PL is Solving India’s Supply Chain Puzzle’, says Delhi-NCR is closely followed by Mumbai with a 24 per cent share and Bengaluru at 16 per cent. The top six cities, including Chennai, Kolkata, and Hyderabad, represented nearly 70 per cent of the total 3PL leasing activity between 2021 and the first half of (H1) 2025.

3PL players handle the complete supply chain and logistics operations of their clients, allowing them to focus on their core business. These companies have positioned themselves as the largest demand drivers for the country’s logistics real estate market. According to the report, they accounted for 40-50 per cent of the sector’s total leasing activity between 2021 and 2024. In H1 2025, they garnered a share of more than 30 per cent.

Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, Anshuman Magazine said that Delhi-NCR’s strategic location, robust infrastructure, and thriving e-commerce sector has made it an important hub for the industrial & logistics sector. “However, tier-II and III cities are also emerging as new growth hubs. 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,” he added.

The report goes on to say that there is a rising preference to remain asset light with over 60 per cent of surveyed India-based 3PL firms stating they would opt for a space in multi-tenanted buildings over the next 24 months, rather than building their own facilities. This is followed by build-to-suit development (28 per cent) and purchasing existing assets (22 per cent).

Ram Chandnani, Managing Director, Leasing Services, CBRE India, said that this strategy helps the companies to scale faster and lower their costs. “3PL players want to expand rapidly to match the demand arising from the growth of e-commerce and quick commerce, along with the infrastructure push from the government. 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. 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,” he said.

There is also a clear shift towards future-ready warehousing solutions to support rapid business growth and competitiveness. Around 76 per cent of the surveyed 3PL companies said that they are now adopting warehouse management software in their logistics operations.

Furthermore, 3PL entities are also increasingly adopting technologies such as Internet of Things (IoT) sensors, conveyor and sortation systems, and Goods-to-Person picking systems, reflecting a broader shift toward intelligent, automated warehouses. Automated Storage and Retrieval Systems (AS/RS) and robotic arms / cobots are gaining traction as companies seek to reduce errors, enhance inventory management, and improve throughput.

During 2021-H1 2025, 3PL firms were the primary drivers of “big-box” leasing (>100,000 sq. ft.) in India, in terms of value and volume. This reflects the growing need for scalable, future-ready warehousing solutions to meet the surge in demand from e-commerce, retail, and manufacturing.