Blurb: Chennai witnessed a sharp rise in mid-sized office leasing during H1 2026, reflecting a more balanced commercial real estate market.
New Delhi
Chennai’s commercial office market recorded a significant shift in leasing trends during the first half of 2026, with demand for mid-sized office spaces witnessing remarkable growth.
According to a report by Knight Frank India, leasing activity in office spaces measuring between 50,000 and 100,000 square feet nearly doubled to 1.2 million square feet in H1 2026, compared to 0.6 million square feet during the same period last year.
The report noted that the share of mid-sized office transactions almost tripled from 12 per cent in H1 2025 to 32 per cent in H1 2026. This means that nearly one in every three office leasing transactions in Chennai during the period involved mid-sized workspaces, highlighting a clear shift in occupier preferences.
The overall leasing pattern also became more balanced. While large office transactions of over 100,000 square feet accounted for 60 per cent of total leasing activity in H1 2025, their share declined to 31 per cent in H1 2026. Small office spaces contributed 36 per cent of leasing activity, while mid-sized offices accounted for 32 per cent, reflecting a diversified office market.
Knight Frank India attributed this trend to companies increasingly adopting phased expansion strategies and seeking greater operational flexibility.
Joseph Thilak, Executive Director – Occupier Strategy & Solutions and Head of Data Center Business (India) at Knight Frank India, said Chennai’s office market is evolving into a diversified leasing ecosystem where mid-sized occupiers are becoming key demand drivers. He added that the city is well positioned to sustain balanced office market growth over the medium term.
The report also highlighted similar momentum in Ahmedabad, where leasing activity in the 50,000–100,000 square feet category grew 121 per cent year-on-year during H1 2026.