Industrial & Logistics (I&L) sector leasing grew by 26% Y-o-Y to 8 mn sq ft in Jan-Mar 2023 while supply during this period increased by 28% Y-o-Y to 7.6 mn sq. ft, according to CBRE.
During the Jan-Mar23 period, Delhi-NCR drove absorption activity, with the leasing of 1.7 mn sq. ft., followed by Hyderabad at 1.5 mn sq. ft. and Ahmedabad at 1.2 mn sq. ft. The leasing share of these three cities in total leasing stood at 54%. The collective share of Chennai, Kolkata and Hyderabad in supply addition stood at 59% in Jan-Mar’23.
According to the report, 3PL had a majority share in leasing at 43%, while e-commerce firms’ share improved and stood at 15% during the Jan-Mar’23 period. Retail and Engineering & Manufacturing firms accounted for a share of 11% each in leasing, followed by Auto & Ancillary corporates at 8%. Overall, domestic firms had a 61% share in leasing, while American corporations held a share of about 17%.
“We anticipate that leasing momentum in the I&L space in 2023 will continue to be strong, with a demand of 32–35 mn. sq. ft. and would grow by 1–5% on an annual basis. Despite macroeconomic uncertainties, the I&L sector saw robust growth in the first quarter of 2023,” said Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
“We anticipate supply to grow by 15–24% Y-o-Y to reach 24-26 mn. sq. ft. following the release of pent-up supply. We also foresee increased demand from FMCG, retail, and electronics & electricals sectors, while 3PL and engineering & manufacturing firms would continue to be key drivers of the leasing momentum this year,” Magazine said.
