Bengaluru recorded a almost 70% year-on-year surge in industrial and logistics leasing during the January-June period of the ongoing calendar year at 3.4 million square feet. Third party logistics players drove this activity with a 54% share, followed by the e-commerce (13%) and retail (10%) segments, according to a report released by property consultancy CBRE on August 16.
Meanwhile fresh supply during the six-month period was recorded at 3.2 million square feet, per the report. Some big-ticket deals during the period included 3 lakh square feet space take-up each by VRL Logistics and quick commerce major Blinkit. Logistics player DHL also leased nearly 2 lakh square feet in an independent warehouse in the city.
Bengaluru, Delhi-NCR and Kolkata account for nearly 58% of the overall space take-up
According to the report, industrial and logistics leasing across the top eight markets saw moderation to 16.6 million square feet during the first two quarters of 2024. Bengaluru, Delhi-NCR and Kolkata accounted for nearly 58% of the overall space take-up during the period.
“While the first half witnessed a shift towards smaller transactions, the market's underlying fundamentals remain robust,” highlighted Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE.
{{/usCountry}}“While the first half witnessed a shift towards smaller transactions, the market's underlying fundamentals remain robust,” highlighted Anshuman Magazine, Chairman and CEO, India, Southeast Asia, Middle East and Africa, CBRE.
{{/usCountry}}Simultaneously new supply decreased by 16% to 15.5 million square feet during H1 2024, with Chennai, Bengaluru, and Mumbai contributing 57% of the total supply. Incidentally, larger developers, backed by institutional investors, accounted for about 33% of this supply, the report said.
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The third-party logistics segment accounted for 40% of overall leasing across the eight cities, followed by engineering and manufacturing firms with an 18% share and FMCG segment at 10%.
“We anticipate a resurgence in leasing activity driven by a combination of factors, including increased demand from diverse sectors, the entry of new market players, and the availability of high-quality supply,” Magazine said, adding that these positive developments collectively contribute to an optimistic outlook for the sector.
Furthermore, despite rising land costs and longer acquisition timelines, prominent developers/investors continue to pursue acquisition opportunities across key warehousing hubs in both Tier-I and Tier-II cities, the report noted