New Delhi: Industrial & Logistics (I&L) sector leasing grew 26% year-on-year (YoY) to eight million sq. ft (msf) in January-March 2023, whereas provide rose 28% YoY to 7.6 mn sq ft, in keeping with a report by CBRE.
Throughout the January-March quarter, Delhi-NCR drove demand, with leasing exercise at 1.7 mn sq ft, adopted by Hyderabad at 1.5 mn sq ft and Ahmedabad at 1.2 mn sq ft. The share of those three cities in whole leasing stood at 54%. The collective share of Chennai, Kolkata and Hyderabad in provide addition stood at 59% within the interval beneath evaluate.
In line with the report, 3PL had a majority share in leasing at 43%, whereas that of e-commerce corporations improved and stood at 15% through the January-March. Retail, engineering and manufacturing corporations accounted for a share of 11% every in leasing, adopted by auto & ancillary firms at 8%. General, home corporations had a 61% share in leasing, whereas US corporates held a share of about 17%.
“We anticipate that leasing momentum within the I&L area in 2023 will proceed to be robust, with a requirement of 32–35 mn sq ft and would develop by 1–5% on an annual foundation. Regardless of macroeconomic uncertainties, the I&L sector noticed strong progress within the first quarter of 2023,” mentioned Anshuman Journal, chairman & CEO – India, South-East Asia, Center East & Africa, CBRE.
In line with the report, the rising necessities of occupiers will improve warehousing areas and enhance storage efficiencies and sure enhance the necessity for high quality warehousing amenities.
“Occupiers to prioritize prime areas, however an absence of ready-to-move-in provide would trigger a shift in focus towards secondary areas, enabling them to leverage comparatively low leases,” it added.
“We anticipate provide to develop by 15-24% YoY to succeed in 24-26 mn sq ft following the discharge of pent-up provide. We additionally foresee elevated demand from FMCG, retail, and electronics & electricals sectors, whereas 3PL and engineering & manufacturing corporations would proceed to be key drivers of the leasing momentum this 12 months,“ he added.
“We anticipate that rising occupier demand for improved warehousing areas and storage effectivity would translate right into a rising want for superior warehousing amenities. Furthermore, occupiers‘ need to realize operational effectivity and cut back prices in a multi-user facility is projected to spice up demand for large-sized areas (greater than 100,000 sq ft),” mentioned Ram Chandnani, managing director, Advisory & Transactions Companies, CBRE India.
Up to date: 26 Apr 2023, 05:35 PM IST