New Delhi, July 26 (IANS). Leasing activity of mid-size office space (50,000–1,00,000 sq ft) in Chennai almost doubled to 12 lakh sq ft in H1 2026 from 6 lakh sq ft in H1 2025.
According to a Knight Frank India report, the share of mid-size office transactions increased from 12 percent to 32 percent during the same period. This shows that almost one out of every three office deals in Chennai was of mid-sized office space.
According to the report, large office deals (over 1,00,000 sq ft) accounted for 60 per cent of total leasing activity in the first half of 2025, but the market became more balanced in the first half of 2026. During this period, the contribution of small office transactions was 36 percent, that of mid-sized offices was 32 percent and that of large offices was 31 percent.
The report said this changing pattern reflects that leasing activity has now become more balanced and diverse across office space of different sizes.
Joseph Thilak, Executive Director – Occupier Strategy & Solutions and Head of Data Center Business (India), Knight Frank India, said, “Chennai’s office market is now moving towards a more diverse leasing ecosystem, with companies occupying mid-sized offices playing a key role in driving demand. As companies adopt phased expansion strategies and seek greater flexibility in operations, we expect demand to remain strong in the mid-sized office segment. Will remain.”
He said Chennai is in a strong position to maintain balanced office market growth in the medium term.
Meanwhile, leasing activity of office space in the 50,000–1,00,000 sq ft category in Ahmedabad also grew strongly during the first half of 2026. Transaction volume in this category grew 121 per cent year-on-year to 2.7 lakh sq ft from 1.2 lakh sq ft in H1-2025.
According to the report, the share of mid-sized office transactions in Ahmedabad also increased from 15 percent to 33 percent. This trend shows that companies are increasingly giving preference to expandable office space while maintaining operational flexibility.
–IANS
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