CBRE’s recent report reveals a historic surge in industrial and logistics space leasing across eight major Indian cities, reaching 38.8 million sq ft in 2023, up from 36 million sq ft the previous year.
The report emphasises the significant role of 3PL players, commanding a substantial 45 percent share in leasing activities. Various industries, including e-commerce, retail, and manufacturing, have outsourced supply chain operations to 3PL firms for enhanced flexibility, cost reduction, and overcoming labor challenges.
Engineering and manufacturing companies contributed 17 percent to the total leasing activity, driven by proactive government policies like the Production Linked Incentive (PLI) scheme. Mumbai witnessed an all-time high in leasing at 9.9 million sq ft in 2023, while Delhi-NCR saw a dip to 7 million sq ft from 9.4 million sq ft in 2022.
Bengaluru and Kolkata reported declines, while Hyderabad experienced growth from 3.7 million sq ft to 4.3 million sq ft. Chennai’s leasing surged from 3.9 million sq ft to 6 million sq ft, Pune saw an increase from 0.7 million sq ft to 1.7 million sq ft, and Ahmedabad recorded a rise from 1.2 million sq ft to 2.2 million sq ft.
Driven by increased demand for high-quality spaces, restricted supply availability, and rising land costs, rental values witnessed an annual increase in prominent micro-markets across cities, with Kolkata being the exception, according to CBRE.
(Source: The Economic Times)
