Indospace leases Pune warehouse to manufacturer for Rs 46 lakh monthly rent

Indospace has finalised a major lease agreement with a global manufacturing firm, which will occupy 1.27 lakh square feet of space at its industrial park in Pune.

The lease, valued at ₹46.42 lakh per month, underlines the growing demand for high-grade logistics and storage infrastructure in one of the country’s most active industrial corridors. According to information sourced from property registration documents, the lease commenced on January 29 this year and is set for a five-year term. The deal, priced at ₹36.37 per square foot per month, also includes a six-month security deposit amounting to ₹2.78 crore. The rental agreement includes an annual escalation clause of 5%, ensuring a consistent appreciation of lease value over time. Indospace, backed by a strong institutional presence in the industrial real estate segment, has continued to expand its national footprint through similar long-term partnerships. This specific transaction reflects not only the company’s ability to attract global manufacturers but also Pune’s strategic relevance as a logistics and production hub.

Pune’s infrastructure and connectivity to Maharashtra’s major highways, combined with the city’s increasing industrial specialisation, have made it a preferred destination for warehousing investments. Experts believe that as companies adopt more integrated and digitally enabled supply chains, the demand for sustainable and technologically equipped warehousing facilities will continue to rise. Officials from Indospace did not comment on the development, but market insiders confirmed that the lessee, a multinational manufacturing firm with operations across Asia Pacific, is likely to utilise the facility for high-value storage and assembly operations. The agreement is seen as a signal of India’s strong performance in the Asia-Pacific logistics sector, where resilient demand is being driven by manufacturing diversification, government-backed infrastructure initiatives, and the rise of sustainable industrial development.

This lease follows a pattern of significant warehousing deals across the Pune-Mumbai belt. In January 2025, a logistics firm entered a five-year lease agreement for 4.75 lakh square feet in Khed, near Pune, for approximately ₹73 crore. Similarly, a solar technology manufacturer signed a ten-year lease for over seven lakh square feet in Khalapur near Mumbai with an estimated monthly rent exceeding ₹1.4 crore. In another notable deal, a large auto components firm signed a long-term lease for 77,800 square feet in Chakan, an industrial hub near Pune, valued at ₹40 crore over a decade. These transactions represent a clear trend: institutional-grade warehousing and logistics infrastructure is witnessing surging demand, with Pune emerging as a front-runner in India’s industrial transformation.

According to a Q1 2025 market study by a prominent real estate consultancy, India’s industrial and logistics absorption touched 16 million square feet during the quarter—an 18.5% increase from the same period last year. Tier-I cities contributed 79% of this, with Pune accounting for a robust 2.3 million square feet or 14% of total leasing. These numbers point to both a cyclical recovery and a structural shift in India’s warehousing landscape, where proximity to consumer markets, multimodal connectivity, and sustainable design are becoming non-negotiable features. In terms of environmental alignment, experts emphasise that the new generation of warehousing parks, including Indospace facilities, are increasingly adopting green building certifications, solar energy integration, and smart automation tools. These features are not just value additions but are emerging as key differentiators in a sector seeking to reduce carbon footprints while improving operational efficiency.

Given the rise in e-commerce, electric mobility, and manufacturing diversification through policies such as the PLI scheme, warehousing space has become essential for last-mile delivery networks, reverse logistics, and clean energy assembly units. As per industry observers, Pune’s position at the intersection of traditional manufacturing and emerging tech is making it uniquely equipped to host these evolving industrial requirements. Real estate analysts expect warehousing rentals in strategic locations like Pune to witness steady appreciation over the next 3-5 years, especially as demand outpaces supply in high-quality Grade A facilities. The 5% annual rent escalation embedded in most new lease agreements also reflects this bullish outlook from asset owners and developers.

As the Indian logistics ecosystem continues its post-pandemic restructuring, institutional players like Indospace are playing a critical role in shaping resilient, green, and technology-enabled industrial zones that can serve both domestic and global value chains. For Pune, which already enjoys strong connectivity, skilled manpower, and policy support, the future of sustainable industrial growth appears increasingly tangible. While the full economic impact of such high-value leases will play out over the long term, they offer immediate indicators of India’s growing stature as a manufacturing and logistics destination — not only regionally, but globally.

Indospace leases Pune warehouse to manufacturer for Rs 46 lakh monthly rent