DHL Expands Chennai Warehousing Footprint with Major Lease in Polivakkam

DHL Supply Chain India has taken a significant step to expand its logistics footprint in Chennai by leasing around 3.5 lakh square feet of warehousing space at the Value Spaces Logistics and Industrial Park in Polivakkam. The move underlines the company’s long-term commitment to one of India’s most important logistics and manufacturing hubs and comes amid rising demand for organised warehousing across Tamil Nadu.

The lease is scheduled to commence from December 15, 2025, according to industry sources. DHL will pay a monthly rental of about Rs 77 lakh, translating to roughly Rs 22 per square foot. The agreement is understood to be for an initial tenure of 11 months, with the annual rental value estimated at around Rs 9.24 crore. If the same rental terms continue over a five-year period, the total lease value could touch approximately Rs 46.2 crore. As part of the transaction, DHL Supply Chain has also paid a security deposit of about Rs 2.3 crore to the landlord.

The facility is located in Polivakkam near Thiruvallur, a micro-market that has rapidly emerged as a preferred warehousing cluster on the outskirts of Chennai. The area offers strong connectivity to key arterial roads, national highways and major industrial corridors, while also providing access to ports and multimodal transport networks. These advantages have made Polivakkam particularly attractive for companies catering to the automotive, electronics and engineering sectors.

Industry experts point out that Chennai’s warehousing market continues to benefit from a combination of factors, including the availability of large land parcels, relatively competitive rentals and steady improvements in road and port infrastructure. The growth of manufacturing activity in and around the city, coupled with the expansion of e-commerce and third-party logistics players, has further accelerated demand for modern, compliant warehouse facilities.

DHL’s latest leasing activity is seen as a reflection of this broader trend, as global logistics players look to strengthen capacity close to consumption centres and industrial clusters. With Chennai playing a key role in southern India’s supply chains, the deal reinforces the city’s position as a major warehousing and logistics destination