Warehousing Spaces Grow 25% In 2019: JLL
New Delhi: The warehousing real estate industry is growing by leaps and bound and has registered 25 percent increase in 2019 over 2018. The total warehousing space in the country stood at 2111 million square feet in 2019 as compared to just 169 million square feet in 2018, according to a report by property consultant JLL.
Delhi NCR has shown maximum absorption of warehosuingspace in 2019 at 7.8 million square feet. Mumbai stood second with absorption of 7 million square feet. Bengaluru stood third with absorption of 5.9 million square feet. Pune and Kolkata absorbed 4.2 and 3.7 million square feet space in 2019.
The overall warehousing stock of the country is likely to cross 375 million square feet by 2023. There will be an increase of Grade A stock as a percentage. The strong demand is likely to drive the absorption of warehousing space and keep the vacancy levels below 10 percent.
The logistics industry has seen 3PL (third party logistics) becoming as the largest occupier of space. The industry saw two pronged growth- one from the sector’s self-expansion and other from demands transcending from other sectors that are shifting to less-liability or asset-light model of leases through 3PL players.
“Sectors such as 3PL and ecommerce are prompting the market to develop more Grade A warehousing space as occupiers make the transition to spaces with global level specifications. This is further being enabled by liquidity infusion by global investors as in the longer run, increased capital will ensure that more quality space is being built to fulfil the demand for warehouses not only in tier I but going forward in tier II cities”, said Yogesh Shevade, Head – Industrial Services, JLL India.