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Bengaluru: Logistics company DHL Supply Chain India Pvt Ltd has leased around 350,000 square feet of warehousing space at Value Spaces Logistics & Industrial Park, Chennai, according to property registration data accessed from Propstack.
The facility has been taken on lease from Value Space Logistics & Industrial Park Polivakkam Private Limited under a fresh agreement from December 15, 2025. The transaction highlights continued demand from third-party logistics operators for large, grade-A warehousing assets located on the peripheries of major consumption centres and manufacturing hubs.
As per the lease documents, DHL Supply Chain will pay a monthly rent of Rs 77 lakh, translating into an effective rental of about Rs 22 per sq ft per month, Propstack data showed. On an annualised basis, the lease results in a rental outgo of about Rs 9.24 crore. If the rental level were to be maintained over a five-year period, the cumulative rental value would work out to about Rs 46.2 crore.
The lease tenure is 11 months, a structure commonly seen in industrial and warehousing transactions, allowing tenants flexibility in renewals and scope for renegotiation of commercial terms. DHL paid a security deposit of about Rs 2.3 crore to the landlord, according to the registration documents.
DHL Supply Chain did not respond to a detailed email query sent by ET seeking comments on the transaction.
The logistics and industrial park is located in Polivakkam, Manavalanagar, near Thiruvallur, an area that has emerged as a key warehousing cluster for Chennai. The location offers connectivity to major arterial roads and access to industrial corridors catering to automotive, electronics and engineering companies that form the backbone of the city’s manufacturing ecosystem. Industry executives said the availability of large land parcels, competitive land pricing and improving highway and port connectivity have made the region attractive for organised warehousing development.
Chennai continues to rank among the country’s top warehousing and industrial markets, supported by steady demand from e-commerce, fast-moving consumer goods, retail and third-party logistics players. Large-format leasing transactions by global occupiers such as Germany-headquartered DHL underline the city’s strategic importance in national and regional supply chains, particularly for companies servicing southern India.
DHL Supply Chain has remained an active occupier across major Indian logistics markets as it scales up capacity to support growing client requirements in distribution, fulfilment and contract logistics. Over the past few quarters, the company has leased more than 1.6 million sq ft of warehousing space across key hubs including Mumbai, Bengaluru, Pune and the National Capital Region, with a clear preference for grade-A assets offering modern specifications, higher clear heights, efficient loading infrastructure and compliance-ready facilities.
The Chennai transaction adds to DHL’s expanding India portfolio and aligns with its broader strategy of strengthening a pan-India warehousing and distribution network. With manufacturing activity gaining momentum in southern India and consumption-led sectors showing resilience, demand for organised logistics infrastructure is expected to remain firm in the medium term.
For developers and investors, sustained leasing by global logistics players such as DHL provides long-term visibility on cash flows and reinforces confidence in the industrial and warehousing segment. The asset class has emerged as one of the most stable and institutionally preferred segments within India’s commercial real estate market, supported by strong occupier demand and improving quality of supply.
The facility has been taken on lease from Value Space Logistics & Industrial Park Polivakkam Private Limited under a fresh agreement from December 15, 2025. The transaction highlights continued demand from third-party logistics operators for large, grade-A warehousing assets located on the peripheries of major consumption centres and manufacturing hubs.
As per the lease documents, DHL Supply Chain will pay a monthly rent of Rs 77 lakh, translating into an effective rental of about Rs 22 per sq ft per month, Propstack data showed. On an annualised basis, the lease results in a rental outgo of about Rs 9.24 crore. If the rental level were to be maintained over a five-year period, the cumulative rental value would work out to about Rs 46.2 crore.
The lease tenure is 11 months, a structure commonly seen in industrial and warehousing transactions, allowing tenants flexibility in renewals and scope for renegotiation of commercial terms. DHL paid a security deposit of about Rs 2.3 crore to the landlord, according to the registration documents.
DHL Supply Chain did not respond to a detailed email query sent by ET seeking comments on the transaction.
The logistics and industrial park is located in Polivakkam, Manavalanagar, near Thiruvallur, an area that has emerged as a key warehousing cluster for Chennai. The location offers connectivity to major arterial roads and access to industrial corridors catering to automotive, electronics and engineering companies that form the backbone of the city’s manufacturing ecosystem. Industry executives said the availability of large land parcels, competitive land pricing and improving highway and port connectivity have made the region attractive for organised warehousing development.
Chennai continues to rank among the country’s top warehousing and industrial markets, supported by steady demand from e-commerce, fast-moving consumer goods, retail and third-party logistics players. Large-format leasing transactions by global occupiers such as Germany-headquartered DHL underline the city’s strategic importance in national and regional supply chains, particularly for companies servicing southern India.
DHL Supply Chain has remained an active occupier across major Indian logistics markets as it scales up capacity to support growing client requirements in distribution, fulfilment and contract logistics. Over the past few quarters, the company has leased more than 1.6 million sq ft of warehousing space across key hubs including Mumbai, Bengaluru, Pune and the National Capital Region, with a clear preference for grade-A assets offering modern specifications, higher clear heights, efficient loading infrastructure and compliance-ready facilities.
The Chennai transaction adds to DHL’s expanding India portfolio and aligns with its broader strategy of strengthening a pan-India warehousing and distribution network. With manufacturing activity gaining momentum in southern India and consumption-led sectors showing resilience, demand for organised logistics infrastructure is expected to remain firm in the medium term.
For developers and investors, sustained leasing by global logistics players such as DHL provides long-term visibility on cash flows and reinforces confidence in the industrial and warehousing segment. The asset class has emerged as one of the most stable and institutionally preferred segments within India’s commercial real estate market, supported by strong occupier demand and improving quality of supply.
