Leasing of industrial, warehousing spaces touches 10 mn sq ft in top cities
New Delhi: Leasing of industrial and warehousing spaces stood at 10 million square feet in the first half of 2021 in the top five Indian cities- Delhi NCR, Bengaluru, Chennai, Pune and Mumbai.
The demand for such spaces was mostly driven by 3PL companies. This was followed by ecommerce players and they accounted for 31 percent and 22 percent of the overall demand respectively. Delhi NCR accounted for the highest share of the demand with a share of 30 percent. This was followed by Pune with a share of 27 percent and Bengaluru with a share of 20 percent respectively.
Almost 59 percent of the overall leasing activity was in Grade A industrial and warehousing facilities, according to a report by Colliers.
“Demand for industrial and warehousing space will not only come from e-commerce, 3PLs, but also from medical suppliers, exporters and cold storage operators. With same-day delivery becoming the norm, there will be significant activity in smaller facilities closer to cities, needed for last-mile delivery. The market will also see sizeable repurposing of defunct spaces into Grade A industrial spaces. We expect demand from 3PL and E-commerce firms to remain resilient in the coming quarters, boosting demand for consolidated warehouses with upgraded technology solutions like Warehouse Management systems,” said Ramesh Nair, Chief Executive Officer, India & Managing Director, Market Development, Asia.