Industrial and logistics space leasing increased by 13% in Jan-Jun: CBRE Report
Leasing activity reached 14 million sq ft in H1 2021 (January-June), up more than 13% from the previous half-year.
According to property consultant CBRE, leasing of industrial and logistics spaces increased by 13% to 14 million square feet in eight key cities from January to June 2021, owing to increased demand.
According to CBRE South Asia’s recent study, India Industrial and Logistics Market Monitor for H1, new supply grew 5% to 11 million square feet (sqft) from January to June 2021, compared to the second half of calendar year 2020.
“Leasing activity reached 14 million sq ft in H1 2021 (January-June), up more than 13% from the previous half-year,” according to the research.
In H1 2021, leasing activities in Delhi-NCR and Bengaluru dominated, accounting for almost half of all space absorption.
During H1 2021, medium-to-large deals (more than 50,000 sq ft) dominated leasing with a share of roughly 62 percent, according to the report.
E-commerce and retail businesses, as well as third-party logistics (3PL) providers, were important demand generators.
In terms of new supply, Chennai accounted for around a third of the total additions in H1 2021, followed by Delhi-NCR (19%) and Mumbai (13%).
According to the expert, half-yearly rental growth in Ahmedabad, Hyderabad, and Chennai ranged from 2% to 14% in the January-June period of this year.
According to CBRE, occupiers will focus on getting closer to the consumer.
“Occupants would want to situate themselves strategically in facilities closer to the final point of consumption to minimise logistics delays,” the paper stated.
Developers will diversify their portfolios by boosting the share of first- and last-mile warehouses, according to the report.
According to the research, “a select few may even examine tier-II and tier-III cities, cold storage facilities, and data centres.”
CBRE said in July that warehousing space absorption has surpassed 100 million sq ft cumulatively over the previous five years, with a historic leasing peak of 32 million sq ft reached in 2019.
It forecasted rental of approximately 100 million square feet across eight cities from 2021 to 2023.
Delhi-NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune, Kolkata, and Ahmedabad are among the cities studied in the paper.