Delhi-NCR has emerged as the largest third-party logistics (3PL) hub in the country, accounting for 25% of total leasing activity by the industrial and logistics (I&L) sector since 2021, followed by Mumbai with a 24% share and Bengaluru at 16%, according to the latest report by real estate consultancy CBRE South Asia. 

The top six cities, including Chennai, Kolkata, and Hyderabad, represented nearly 70% of the total 3PL leasing activity between 2021 and H1 2025. 3PL companies handle the complete supply chain and logistics operations of their clients, allowing them to focus on their core business. The CBRE report reveals they have positioned themselves as the largest demand drivers for the country’s logistics real estate market, and accounted for 40-50% of the sector’s total leasing activity between 2021 and 2024. In H1 2025, they garnered a share of over 30%. 

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said Delhi-NCR’s strategic location, robust infrastructure, and thriving e-commerce sector have 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.”

Besides, there is a rising preference to remain asset light, with over 60% 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%) and purchasing existing assets (22%). 

“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,” says Ram Chandnani, Managing Director, Leasing Services, CBRE India.

Additionally, in a clear shift towards future-ready warehousing solutions, around 76% of the surveyed 3PL companies said that they are now adopting warehouse management software in their logistics operations. They are also increasingly adopting technologies such as Internet of Things (IoT) sensors, conveyor and sortation systems, and goods-to-person picking systems.

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