High Absorption Driven by 3PL, E-Commerce, and Manufacturing
In 2024, Chennai witnessed strong absorption in the industrial and warehousing segment, largely driven by third-party logistics (3PL) providers, e-commerce giants, and automotive and electronics manufacturers.

• Chennai contributed significantly to India’s total warehousing absorption, alongside NCR and Pune
  
• Key demand came from logistics hubs near Oragadam, Sriperumbudur, and Red Hills
  
• 3PL and e-commerce sectors accounted for over 55% of total leasing activity in the region 【source: Colliers India】
  

Net Absorption Figures Indicate Healthy Market Demand
According to Colliers’ Q4 2024 report, Chennai recorded a net absorption of over 6 million sq. ft. for industrial and warehousing space during the year, indicating robust market activity.

• The market remained stable with sustained quarterly absorption across key micro-markets
  
• Grade A facilities saw higher take-up due to rising demand for compliant, scalable spaces
  
• Demand was especially strong in southwest and northern industrial corridors of Chennai
  

Vacancy Rates and Rental Growth Support Positive Outlook
Despite high absorption, Chennai’s industrial market maintained a healthy vacancy rate of around 13%–14%, showing balanced supply and demand.

• Rents rose by 5–10% in select corridors, reflecting strong interest in well-located parks
  
• Developers are launching new speculative and built-to-suit projects to meet demand
  
• Chennai’s position as a gateway for trade and manufacturing continues to fuel steady absorption