New Delhi, Sep 13 (NationPress) The overall logistics and industrial (L&I) leasing is projected to exceed 60 million square feet (MSF) by the end of the year, establishing a new standard for the industry driven by robust demand, according to a report released on Saturday.

"In the initial half of 2025 (H1 2025), leasing growth across warehousing and industrial sectors remains in double digits, with cumulative leasing reaching 30.7 MSF—a 21.6 percent year-on-year (YoY) increase and a 12.1 percent rise compared to H2 2024," stated Cushman and Wakefield, a notable real estate services firm, in their findings.

This performance highlights the sector’s solid fundamentals, with leasing activity exceeding 50 MSF annually for the last three consecutive years.

With this momentum continuing, overall leasing is anticipated to surpass 60 MSF by year-end, thus setting a new milestone for India’s Logistics & Industrial domain.

The report indicates that warehousing was the primary contributor, accounting for 21.9 MSF of leasing, which constitutes 71.3 percent of the total, whereas industrial space made up 8.8 MSF, or 28.7 percent.

From a sectoral viewpoint, engineering and manufacturing (E&M) led leasing activities with 9.7 MSF, representing 32 percent of total absorption and achieving a remarkable 37 percent YoY growth.

This trend underscores the increasing significance of the manufacturing sector in India’s self-reliant economy, supported by infrastructure enhancements and favorable policies. Third-party logistics (3PL) operators leased 7.4 MSF, which corresponds to a 24 percent share and reflects steady growth, indicating market maturity after previous expansion phases, the report highlighted.

The E-commerce segment saw the most significant annual increase, with a 158 percent YoY growth, reaching 4.6 MSF and capturing a 15 percent share of total leasing, largely driven by festive season stocking and last-mile network enhancements.

According to Abhishek Bhutani, Managing Director of Logistics and Industrial Services India, Head- Gujarat, Cushman and Wakefield, "The performance in H1 emphasizes how India's logistics and industrial sector has progressed beyond temporary fluctuations, showcasing structural resilience."

The persistent demand across various segments indicates that occupiers are now prioritizing not only capacity but also efficiency, location, and long-term value. Notably, the enhanced role of manufacturing and the revival of e-commerce are jointly transforming supply chain strategies, he added.

With strong demand fundamentals, a robust supply pipeline of 25 MSF of Grade-A warehousing is projected over the next 2–3 years, along with supportive policy measures, ensuring that India’s logistics and industrial real estate sector is set to maintain its upward trajectory through 2025, the report concluded.