Industrial leasing at record levels, up a massive 63% in H1

Business Business: Leasing of industrial and warehousing spaces grew 63 per cent to a record 27.1 million sq ft across eight major cities in the first six months of this calendar year, driven by strong demand from e-commerce companies, according to CBRE.

On Tuesday, real estate consultant CBRE reported that third-party logistics (3PL) companies accounted for 32 per cent of the total spaces leased during January-June this year, while the share of e-commerce companies rose to 25 per cent. Anshuman Magazine, President and CEO, India, Southeast Asia, Middle East and Africa, CBRE, said, “The dominance of 3PLs and e-commerce, which together drove more than half of the first half’s demand, underscores how rapidly changing consumer expectations and supply chain optimization are reshaping the landscape.” He added that the next wave of growth will be defined by premium, sustainable and tech-enabled amenities. Ram Chandnani, managing director (leasing), CBRE India, said, “Strong growth in leasing activity and continued institutional investment in quality assets reflect the confidence of both occupiers and developers in India’s industrial and logistics sector.” He added that demand for industrial and warehousing spaces is increasing in tier-2 cities.