The leasing activity for mid-sized office spaces in Chennai, ranging from 50,000 to 100,000 square feet, nearly doubled to 1.2 million square feet in the first half of 2026 from 0.6 million square feet in H1 2025. This surge saw the share of mid-sized office transactions almost tripling from 12% to 32% during the same period, indicating a significant rise in deals from this segment. Large office deals, which accounted for 60% of leasing activity in H1 2025, saw a more balanced market in H1 2026, with small offices contributing 36%, mid-sized offices 32%, and large offices 31% of total leasing.
This shift in the market dynamics towards a more diversified distribution of leasing activity across office sizes is highlighted in a report by Knight Frank India. The report notes that Chennai’s office market is evolving into a more diversified leasing ecosystem, with mid-sized occupiers playing an increasingly crucial role in driving demand. Joseph Thilak, Executive Director-Occupier Strategy & Solutions at Knight Frank India, emphasized that as businesses opt for phased expansion strategies and seek operational flexibility, the demand for mid-sized office spaces is expected to remain robust. Thilak also expressed confidence in Chennai’s ability to sustain balanced office market growth over the medium term.
In Ahmedabad, the leasing activity for 50,000–100,000 sq ft office spaces witnessed a significant uptick during H1 2026, with transaction volumes increasing by 121% year-on-year to 0.27 million square feet from 0.12 million square feet in H1 2025. The share of mid-sized office transactions in Ahmedabad also surged from 15% to 33%, indicating a growing preference among occupiers for scalable office formats while ensuring operational flexibility, as per the report.
