Auto major Eicher Motors has leased around 4 lakh square feet of industrial space in Chennai's Casagrand Industrial Park for a total rental outlay of about ₹74 crore over a period of seven years. According to transaction documents accessed by Propstack, the company will pay rent for a chargeable area of around 4 lakh square feet at a monthly rental rate of ₹21.06 per square foot. The lease agreement will be valid for seven years, with the starting monthly rent at ₹82.45 lakh. The transaction, executed on July 30, represents a fresh lease arrangement for the company.
The lease provides for a rent escalation of 3.5 per cent annually after the completion of the first two years, as reported by Propstack. This structure ensures the rental cost adjusts with market conditions over the lease term. The deal comes at a time when India's logistics and industrial real estate sector recorded its strongest-ever first-half leasing performance across Tier-I cities in 2026. The company has also paid a security deposit of ₹5.24 crore as part of the lease agreement.
According to a report by Cushman & Wakefield, gross leasing in India's logistics and industrial real estate segment grew 18 per cent year-on-year to 36.2 million square feet in H1 2026. Warehousing accounted for the bulk of demand, with 24.3 msf, or 67 per cent of total leasing, while industrial leasing emerged as the key growth driver, rising 36 per cent Y-o-Y to nearly 12 msf. Among sectors, the automobile industry nearly doubled its leasing activity from a year earlier to 4.8 msf, accounting for 13 per cent of total demand.
At the city level, while Delhi-NCR emerged as the largest logistics and industrial market, Chennai recorded the second-highest demand. As reported by Cushman & Wakefield, Chennai accounted for 17 per cent of total leasing demand across India's Tier-I markets, recording 6.1 msf of leasing activity in H1 2026. This represented a 31 per cent Y-o-Y increase from the 4.4 msf recorded in the city in H1 2025. The region continues to witness healthy demand for Grade A industrial and logistics assets from both domestic and multinational occupiers, with Sriperumbudur emerging as one of India's most prominent manufacturing and industrial hubs.
