The Manesar and Greater Noida along with Thane’s Maharashtra Industrial Development Corporation (MIDC) are among the most expensive places to buy land for a warehouse. The prices ranging from ’15-30 crore per acre, compared to the average of ‘2-5 crore per acre in other top markets in the nation, according to the CBRE data.
The pandemic boosted demand for e-commerce and retail, contributing to a new high in supply and absorption of warehouse space. FMCG continues to do well, according to the real estate firm. According to a survey by CBRE, the total lease area in eight cities in 2023 was 38.8 million square feet.
Anshuman Magazine, chairman and CEO, India, Southeast Asia, Middle East & Africa, CBRE, stated, “As we envision the future of the industrial and logistics sectors, this robust growth is a proof to the sector’s resilience even though global economic challenges.”
In 2023, the total supply of Industrial and Logistics (I&L) space reached a record high of 36 million square feet.
The need for effective last-mile delivery solutions is growing as more and more industries, including manufacturing, retail, and fast-moving consumer goods, adopt more organized operating models. As a result, warehouse companies are aggressively searching for new markets to provide this need.
Throughout the year, third-party logistics companies, who together held a market share of around 45%, primarily directed the lease of I&L space. Businesses in this sector that operate in a variety of industries, including manufacturing, retail, and e-commerce, have chosen to contract out their supply chain management to these companies.
Simplifying supply chain activities is shown by the variety of occupancies observed in Industrial and Logistics leasing from the manufacturing, e-commerce, 3PL, and retail sectors.
The strategic partnership with 3PL companies is an occupier-led effort to meet storage requirements, improve flexibility, reduce expenses, and lessen labor-sourcing-related issues “said Ram Chandnani, MD, CBRE India’s consulting and transaction services.
According to Chandnani, this calculated action was taken to satisfy storage needs, achieve greater flexibility, cut costs, and get beyond labor sourcing obstacles.
17% of all leasing activity was accounted for by engineering and manufacturing firms, up from 10% and 15% in 2022 and 2021, respectively. Proactive government policies, enhanced by programs like the Production-Linked Incentive (PLI) scheme, were a major factor in the expansion of indigenous manufacturing and engineering companies.
Small-sized agreements (less than 50,000 sq. ft.) accounted for the majority of space leasing in 2023, accounting for over 43% of all deals, up from 39% in 2022.
Source-ET
