Amazon India Leases 2.78 Lakh Sq Ft Warehouse in Bengaluru

Amazon Seller Services Private Limited, the marketplace arm of Amazon India, has significantly expanded its fulfilment footprint by securing a large-scale warehousing facility in the Bengaluru Rural district. According to property registration documents accessed by CRE Matrix, the e-commerce giant has sub-leased approximately 2.78 lakh square feet of specialized warehouse space from Assetz Industrial Parks Private Limited, a subsidiary of the Singapore-based AGP Group. This move is part of Amazon's broader strategy to enhance its supply chain efficiency and delivery speed across South India.

Lease Terms and Financial Commitment

The agreement reflects the growing value of institutional-grade logistics infrastructure in peripheral urban zones. The key financial and operational details of the transaction include:

• Monthly Rental: Amazon will pay a monthly rent of approximately ₹73 lakh, which translates to a rate of ₹26.25 per square foot.
• Lease Tenure: The property has been secured for a nine-year term, featuring a 5% annual rent escalation clause to account for market appreciation.
• Security Deposit: The company has furnished a security deposit amounting to ₹4.37 crore to formalize the agreement.
• Operational Timeline: While the sublease officially commenced on January 1, 2026, rent payments began on March 15, 2026, following a 75-day rent-free period.

Facility Specifications and Logistics Capabilities

The facility is located in a dedicated industrial building at Billanakote Village within the Sompura Hobli of Nelamangala Taluk. The premises are designated exclusively for industrial warehousing and logistics park operations. To support high-volume transit requirements, the agreement includes specialized parking infrastructure, providing 25 dedicated truck parking spaces and 150 bike parking slots for delivery personnel and staff. Its strategic location allows for seamless access to major highways connecting Bengaluru to other critical regional hubs.

Amazon's Growing Real Estate Footprint in India

This transaction follows a series of high-volume leasing deals by Amazon across India's top real estate markets. Last year, the company signed a massive 20-year lease for a 5.59 lakh sq ft warehouse in Hooghly, near Kolkata, marking one of the country's largest-ever logistics deals. In April 2025, Amazon group companies renewed a ₹1.73 crore monthly lease for over 94,000 sq ft of premium office space in Mumbai’s Vikhroli. Furthermore, Amazon Development Centre India and Amazon Seller Services previously secured over 1 million sq ft of office space in North Bengaluru at a monthly rent of ₹6.1 crore, solidifying the city's role as the company's primary operational base in India.

Industrial and Warehousing Sector Performance

The deal occurs against the backdrop of a robust surge in India's industrial and warehousing sector. According to Knight Frank India, the total warehousing stock across the country's eight primary markets surpassed 549 million square feet in 2025, representing a 13% year-on-year growth. While Mumbai and Delhi-NCR continue to lead the total stock volume, Bengaluru’s peripheral growth corridors are seeing increased demand due to their proximity to the Global Capability Centres (GCCs) and the upcoming high-speed transit links like the Ganga Expressway and regional metro expansions.

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