Leading research and property consultancy firm CBRE recently released its ‘India Industrial and Logistics Market View, H2 2018’ report which underlines major jump in fresh warehouse leasing business in the country. According to the report, with rising demand from e-commerce and some other consumer centric businesses, the leasing in the warehousing and logistics sector shot up by a staggering 45 per cent to a record area of 24 million sq ft. In H2 2017, the figure had stood at 16.5 million sq ft. With 70 percent share in fresh leasing, Mumbai, Delhi/NCR, Bengaluru and Chennai drove the demand.
“We are very positive about the government’s vision to increase the sector’s contribution to the overall gross domestic product (GDP) through more incentives for players and streamlining regulations,” Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East and Africa, CBRE said.
The report also points at another critical trend- the leasing deals becoming larger in size. The average size of the deals in H2 2018 stood at 90,000 sq ft as against 75,000 sq ft in the corresponding period in 2017.