Tamil Nadu, Aug. 29 -- Chennai's commercial real estate office market is expected to maintain stable occupancy levels at 90.5-91.0 per cent by March 2026.

This follows a period of strong performance with fresh Grade-A office supply of 4.9 million square feet (msf) in FY2025 and 1.3 msf in Q1 FY2026, which was matched by robust net absorption of 4.8 msf and 3.1 msf respectively, according to ICRA.

The credit rating agency said that the strong leasing activity, particularly from the IT-BPM and engineering & manufacturing sectors, drove occupancy up to 90.6 per cent by June 2025, from 87.8 per cent in March 2024.

A significant portion of the upcoming supply is concentrated in the Pallavaram micromarket. Of the total 5 msf of new supply an...