Delhi-NCR has solidified its position as India’s leading third-party logistics (3PL) hub, capturing 25% of total industrial and logistics (I&L) leasing activity since 2021, according to CBRE South Asia’s latest report, “Built to Scale: How 3PL is Solving India’s Supply Chain Puzzle.” It is closely followed by Mumbai (24%) and Bengaluru (16%), with the top six cities—including Chennai, Kolkata, and Hyderabad—accounting for nearly 70% of all 3PL leasing between 2021 and H1 2025.

3PL companies, which manage end-to-end supply chain operations for their clients, have emerged as the primary demand drivers for India’s logistics real estate sector, contributing 40–50% of leasing activity between 2021 and 2024 and over 30% in H1 2025. The report highlights Delhi-NCR’s strategic location, robust infrastructure, and thriving e-commerce ecosystem as key factors behind its leadership, while also noting that tier-II and III cities are becoming attractive expansion destinations due to rising consumption and lower land costs.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, 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 added that 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%).

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.”

There is also a clear shift towards future-ready warehousing solutions to support rapid business growth and competitiveness. Around 76% 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.