Mahindra Logistics Leases 4.75 Lakh Sq. Ft. in Pune: Key Trends in Warehousing & Logistics

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Mahindra Logistics Leases 4.75 Lakh Sq. Ft. in Pune: Key Trends in Warehousing & Logistics

The Indian logistics and warehousing sector is witnessing remarkable growth, with large-scale leasing deals becoming increasingly common. One such significant development is Mahindra Logistics Limited (MLL) securing a 4.75 lakh sq. ft. warehouse and logistics space in Khed, Pune, through a five-year lease agreement worth approximately ₹73 crore. This deal highlights the growing demand for industrial and logistics spaces in key economic hubs.

Mahindra Logistics' Expansion in Pune

According to property registration documents accessed by CRE Matrix, Mahindra Logistics has leased 4.75 lakh sq. ft. of built-up space at Karanje Emerald Industrial Park in Khed, Pune. The agreement was registered on January 20, 2025, with the following key financial terms:

Security Deposit: ₹3.45 crore

Stamp Duty Paid: ₹18 lakh

Registration Fee: ₹1,000

Monthly Rent (First 24 Months): ₹1.15 crore

Annual Escalation Clause: Incremental rent adjustments annually

Lease Lock-in Period: 5 years

Rent Commencement Date: April 3, 2025

Mahindra Logistics has been actively expanding its warehousing footprint across India. In response to queries regarding the lease, the company stated that it currently manages over 22.1 million sq. ft. of logistics space and continues to assess new growth opportunities. While Karanje Emerald Logistics Park Pvt Ltd has not provided comments on the lease, this deal further strengthens Pune’s position as a leading logistics hub.

Why Pune is a Logistics Hotspot?

Pune is emerging as a preferred location for warehousing and logistics due to its strategic connectivity, industrial growth, and robust infrastructure. Several factors contribute to this trend:

1. Proximity to Major Markets

Pune’s location makes it an attractive choice for businesses needing quick access to Mumbai, Bengaluru, and Delhi-NCR. Its industrial corridors facilitate smooth movement of goods across western and southern India.

2. Infrastructure Growth

Expansion of Pune-Mumbai Expressway and Pune Ring Road

Upcoming metro and rail connectivity improvements

Increased investments in industrial parks and SEZs

3. Thriving Manufacturing & Automotive Sectors

With Pune being home to major automobile, IT, and manufacturing giants, the demand for efficient warehousing solutions is rising. Companies are focusing on third-party logistics (3PL) and automation to enhance operational efficiency.

The Rise of Warehousing and Logistics Leasing in India

A report by Cushman & Wakefield predicts that logistics and industrial (L&I) space leasing will reach 50-53 million sq. ft. in 2024 across eight major cities, including Pune. By October 2024, leasing volumes had already crossed 41 million sq. ft., underscoring the rapid expansion of this sector.

Key Leasing Trends in Warehousing:

Increase in Built-to-Suit (BTS) Warehouses 📦

Adoption of Automation & Robotics in Warehousing 🤖

Sustainable Warehousing Practices (Solar Energy, Rainwater Harvesting) 🌱

Shift Towards Multi-Modal Logistics Parks 🚛🚆

These trends indicate a long-term shift towards modern warehousing solutions that prioritise efficiency, sustainability, and automation.

Future Outlook for Logistics & Warehousing in India

The logistics industry is set for continued growth, driven by e-commerce, retail expansion, and supply chain digitisation. Mahindra Logistics' latest leasing move in Pune reflects a broader industry trend of companies investing in large-scale warehousing facilities to support India's growing demand for fast and efficient logistics.

What to Expect in 2025 & Beyond?

More Investments in Tier-2 & Tier-3 Cities for warehousing & distribution

Increased Focus on ESG & Green Warehousing for sustainable operations

Government Policies & Infrastructure Developments boosting logistics efficiency

Integration of AI & IoT in Supply Chain Management for smarter operations

Pune’s logistics and warehousing sector is on a strong growth trajectory, and deals like Mahindra Logistics' lease at Khed reinforce its potential as a logistics powerhouse.

Conclusion

Mahindra Logistics' ₹73 crore lease for 4.75 lakh sq. ft. in Pune reflects the booming logistics and warehousing industry in India. As demand for industrial spaces grows, Pune continues to attract large-scale investments in logistics infrastructure. With strong connectivity, government support, and expanding industrial sectors, the city is set to remain a key hub for warehousing and logistics in the years ahead.

For businesses and investors, the warehousing sector presents significant opportunities for growth, innovation, and long-term profitability.