Delhi NCR, Bengaluru, and Kolkata have emerged as the favourite micro-markets for industrial and logistics sector leasing, as these cities accounted for almost 60 percent of the 23.1 million square feet (msf) leased during the year.
According to data from real estate services firm CBRE, industrial and logistics sector leasing reached a peak of 39.5 msf in CY 2024 across the top eight cities, supported by a supply of 38.6 msf. Mumbai, Chennai, and Bengaluru were the key contributors to the supply, accounting for over half the total.
Third-party logistics (3PL) players remained the top lessors in the sector, comprising 41 percent of the leasing activity, while E&M (engineering and manufacturing) firms accounted for 18 percent.
Small transactions (under 50,000 square feet) made up the majority, with 43 percent of the leasing volume. Medium (50,000–1,00,000 sq ft) and large transactions (1,00,000+ sq ft) each accounted for 28 percent of the overall absorption.
Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East, and Africa at CBRE, said that growth in the industrial and logistics sector highlights its resilience, even amid global economic uncertainties.
“The dominance of 3PL providers underscores their role in shaping the sector's future. Additionally, we expect in-city warehousing and quick-commerce to become even more significant in 2025. Delhi NCR, Kolkata, and Bengaluru are anticipated to lead the absorption activity in CY2025 as well ,” he said.
At 23 msf, leasing remained strong in the July-December period, recording a 17 percent year-on-year (YoY) growth. This was driven by a revival in demand from leading e-commerce companies, the expansion of quick-commerce operators, and aggressive growth initiatives by 3PL and fast-moving consumer goods (FMCG) players, the CBRE report stated.
The report observed that despite increasing land costs and extended acquisition timelines, prominent developers and investors would continue exploring acquisition opportunities across key warehousing hubs in tier 1 and tier 2 cities.
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