Net Office Leasing Down 20% In Jan-Sep Across Top 8 Cities On Supply Constraints: Cushman

Net leasing of office spaces fell 20 per cent annually in the January-September period to 36.7 million sq ft across eight major cities on limited fresh supply of quality workspaces and high base effect, according to Cushman & Wakefield.

Net leasing stood at 46 million sq ft in the year-ago period.

Net absorption, or leasing of office, means net change in occupied space within a given market over a specific period.

Real estate consultant Cushman & Wakefield on Saturday released the data, which pointed out that the net leasing fell in five cities -- Mumbai, Delhi-NCR, Pune, Chennai and Kolkata. The numbers increased in three cities -- Bengaluru, Hyderabad, and Ahmedabad.

However, the consultant highlighted that the gross leasing of office spaces rose 1 per cent to record 64.6 million square feet.

The gross leasing factors in all leasing activity in the market, including fresh absorption, open market renewals by occupiers as well as pre-leasing.

It is an indication of overall market activity.

Anshul Jain, Chief Executive, India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield, noted that India's office market remains structurally strong.

"With 64.6 million sq ft of gross leasing in the first nine months of 2026, the highest ever for this period, the market continues to demonstrate remarkable depth and resilience, despite persistent macroeconomic and geopolitical uncertainty," he said.

Jain credited global capability centres (GCCs) for this sustained office leasing.

Huge talent pool and cost competitiveness are attracting global companies to establish GCCs in India, he observed.

On the fall in net leasing number, Veera Babu, Executive Managing Director, Tenant Representation-India, Cushman & Wakefield, said, "India's office market continues to see healthy occupier demand, with net absorption reaching 14.1 million sq ft during the third quarter and 36.7 million sq ft during the first nine months of the year.

"While year-to-date net absorption moderated compared to last year, this was against a strong 2025 base and was also influenced by limited supply additions during the first half of the year, which constrained occupier options across several markets."

He said there has been a significant increase in completions of office spaces during the September quarter and this would help in creating capacity for the next phase of expansion.

"We are also seeing occupiers plan further ahead, with pre-commitments gaining traction and businesses considering a broader set of locations, including those beyond established office hubs, as part of their growth plans," Babu said.

As per the data, the net leasing of office spaces in Mumbai fell 46 per cent to 4.1 million sq ft in January-September this year from 7.6 million sq ft in the year-ago period.

In Delhi-NCR, the net leasing declined 48 per cent to 5 million sq ft from 9.6 million sq ft.

Chennai, too, saw a fall of 48 per cent to 2.8 million sq ft from 5.4 million sq ft.

Net leasing fell 39 per cent in Pune to 4.2 million sq ft from 6.9 million sq ft.

In Kolkata, the net leasing dipped 12 per cent to 1.1 million sq ft from 1.2 million sq ft.

Bengaluru, the country's biggest office market, saw a 16 per cent increase in net office leasing to 11 million sq ft from 9.5 million sq ft.

Net leasing in Hyderabad rose 41 per cent to 7.3 million sq ft from 5.2 million sq ft.

Lastly, the net office leasing in Ahmedabad surged 81 per cent to 1.2 million sq ft in January-September from 0.7 million sq ft in the year-ago period.

(This is an agency feed. Outlook Business did not edit the story.)