Automaker Eicher Motors has signed a lease agreement for an industrial space of approximately 400,000 square feet in the Casagrand industrial park in Chennai. The total rent for this seven-year contract will amount to approximately 74 crore rupees.
According to the deal documents, the company will pay rent for the leased area of about 400,000 square feet at a monthly rate of 21.06 rupees per square foot. The initial monthly rent under the agreement is 82.45 lakh rupees, and the contract is valid for seven years.
Furthermore, the lease terms stipulate an annual rent increase of 3.5 percent after the completion of the first two years.
India's Industrial Sector Shows Record Performance
This deal comes as India's logistics and industrial real estate sector demonstrated the strongest rental performance in the first half of 2026.
A report by Cushman & Wakefield shows that gross leasing in this segment increased by 18 percent year-over-year (Y-o-Y), reaching 36.2 million square feet (msf). This growth occurred amid accelerating demand driven by manufacturing, despite ongoing global trade and geopolitical uncertainty.
Among property types, warehousing accounted for the largest share of demand, totaling 24.3 msf or 67 percent of the total leased area. Industrial leasing became a key driver of growth, increasing by 36 percent year-over-year to nearly 12 msf.
Activity in the automotive sector almost doubled compared to the previous year, reaching 4.8 msf, which accounts for 13 percent of the total demand. The Cushman & Wakefield report notes that 'nearly two-thirds of the leasing in the sector was designated for industrial properties, reflecting investments in the electric vehicle supply chain and expansion of manufacturing operations.'
At the city level, Delhi-NCR remains the largest market for logistics and industry, but Chennai ranked second in terms of demand. Chennai contributed 17 percent of the total demand for Grade-A office space in India's Tier-1 cities, registering 6.1 msf of activity in the first half of 2026. This represents a 31 percent year-over-year increase compared to the 4.4 msf recorded in the city in the first half of 2025.
