Likely to reach the 36-38 million sft mark by the end of 2023
Indicates CBRE report
The industrial and logistics leasing sector is predicted to perform very well and is expected to reach a five-year high by the end of 2023, according to renowned consultancy firm CBRE South Asia Private Limited.
The performance of the sector across eight main cities of the country in 2023 is expected to cross 36–38 million sft, according to the prediction by the consulting firm.
The supply of industrial and leasing space is also expected to reach 35–37 million sft.
On an annual basis, industrial and logistics leasing during January–September 2023 registered 13% growth, leasing 27.3 million sft of space in the category as opposed to 24.2 million sft leased during the corresponding period last year. The share of Mumbai, Chennai, and Delhi in total industrial and logistics leasing activity is 56%, while the share of third-party logistics players is 45%. The share of engineering and manufacturing companies was limited to 15%; the auto and ancillary sectors’ share was put at 7%; the FMCG share was limited to 6%; and that of the electronics and electrical sector was 5%.
Similarly, on the supply side, the industrial and logistic space has increased by 57% to reach the 28 million sft mark. The total share of Delhi, Chennai, and Kolkata in the supply was 56%.
Maximum leasing of industrial and logistics space—2.1 million sft—was carried out in Chennai during the July–September quarter of the current year, followed by Bangalore (1.7 million sft) and Mumbai (1.3 million sft). In the third quarter, the combined share of the three cities was 62%. At the same time, the 3PL players’ had the highest share of 50% in the quarter, followed by the engineering and manufacturing sector (13%), and the electronics and electrical sector (8%).
The share of the domestic corporations in the leasing activities was 59%, while that of the EMEA corporations was 25%. APAC Corporation’s share was limited to 12%.
The industrial and logistics sectors have demonstrated considerable change, according to CBRE India Chairman and CEO Anshuman Magazine. By the end of the current year, the leasing activities are likely to cross 36–38 million sft, he predicted.
