Multinational Tenants Propel India's Warehousing Sector Toward Sustainable Future

Corporate Sustainability Goals Reshape Logistics Real Estate Market

Industry experts have revealed that India's warehousing sector is experiencing a significant green transformation, with multinational corporate occupiers increasingly driving demand for sustainable facilities rather than just developers and investors leading the change.

According to industry analysts, companies are intensifying their focus on supply chain emissions to achieve Scope 3 targets that encompass all indirect greenhouse gas emissions, transforming green-certified warehouses from optional amenities to essential requirements in India's rapidly expanding logistics landscape.

Green Warehouse Stock Set for Massive Expansion

Data from JLL India has indicated that India's certified green warehousing stock is projected to quadruple, reaching 270 million square feet by 2030, compared to 65 million square feet recorded in 2024. This dramatic growth demonstrates how global corporations are directing demand toward sustainable, energy-efficient assets as part of their Net Zero strategies.

The transformation reflects a broader trend where green building certifications in India have become crucial for attracting premium tenants in the commercial real estate sector.

Essential Features Drive Tenant Decisions

Mehul Shah, CEO of India operations for Singapore-headquartered logistics platform LO-GOI Group, has stated that sustainability features including green certifications, energy-efficient architecture, and advanced water management systems are no longer optional but essential for attracting and retaining high-quality, long-term occupiers.

Shah emphasized that global brands with ambitious ESG targets now prioritize assets that demonstrate strong environmental performance throughout their lifecycle, moving beyond traditional considerations of mere location and cost factors.

The shift toward sustainable living practices is evident across various real estate segments, with warehousing leading the commercial transformation.

Market Response to Sustainability Demands

Industry leaders have noted that the share of green-certified space is expected to rise substantially as institutional players prioritize globally recognized standards like LEED, IGBC, and GRIHA to attract and retain marquee tenants.

Shah has observed that this shift toward green assets represents not just environmental responsibility but smart business strategy, offering operational efficiencies, long-term savings, and future-proof value for both landlords and occupiers.

Similar sustainability trends are emerging in residential projects, with developers increasingly incorporating rainwater harvesting systems and other eco-friendly features to meet changing consumer preferences.

Corporate Tenants Drive Transformation

Industry experts have confirmed that institutional players understand that securing Multi-National Companies as tenants requires green-certified warehouses, making sustainability a non-negotiable requirement.

The transformation is being driven not only by institutional investor-backed developers but also by corporate occupiers whose Net Zero goals are leading them to choose exclusively Green Certified warehouses.

Companies are reportedly targeting 30%-40% savings in energy consumption over project lifecycles, alongside benefits including water conservation, waste recycling, and the use of green materials.

Supply Pipeline Expansion

Institutional investors have responded by increasing supply of certified assets to meet evolving demand. Institutional-grade warehousing space has already tripled to 90 million square feet in 2024 from 28 million square feet in 2019.

Of this total, approximately 72% or 65 million square feet is either green-certified or currently in the process of obtaining certification.

The push toward green warehousing is being supported by robust supply pipelines, with data showing a visible pipeline of around 260 million square feet of institutional-grade supply planned by 2030.

This growth parallels developments in other commercial segments, with recent reports showing that carbon-neutral offices are triggering pre-leasing boom amid supply constraints in major metros.

Industry Investment Surge

The sustainability transformation comes amid broader growth in the warehousing sector, with previous reports indicating that warehousing and logistics absorption grew significantly in H1 2024, boosted by over USD 1 billion in investment.

Major corporations are also demonstrating commitment to sustainable logistics infrastructure, with companies like HUL securing massive warehousing facilities that meet modern sustainability standards.