Leasing in the industrial and logistics (I&L) sector reached an all-time high of 39.5 million square feet in CY 2024 across the top eight cities, a remarkable milestone driven by a substantial supply addition of 38.6 million square feet, according to the latest report by CBRE South Asia Pvt Ltd, titled ‘CBRE Industrial & Logistics Figures H2 2024.’ The report emphasises the continued momentum in leasing, with strong activity across various regions. Notably, Delhi-NCR, Bengaluru, and Kolkata were the leading contributors, together accounting for almost 60 per cent of the total leasing activity during the year.
Mumbai, Chennai, and Bengaluru stood out in terms of supply addition, collectively contributing to over half of the new space in CY 2024. The report identifies third-party logistics (3PL) players as the dominant force in space take-up, with these firms accounting for 41 per cent of the leasing activity. Additionally, engineering and manufacturing companies maintained a strong presence, with an 18 per cent share in the overall space absorption.
Interestingly, the space uptake was predominantly driven by smaller transactions, with those under 50,000 square feet representing 43 per cent of the total leasing volume. Medium-sized transactions (ranging from 50,000 to 100,000 square feet) and larger transactions (exceeding 100,000 square feet) each comprised 28 per cent of the total activity.
Anshuman Magazine, Chairman and CEO of CBRE for India, Southeast Asia, Middle East & Africa, highlighted the resilience of the I&L sector amidst global economic uncertainties, predicting further growth in 2025. He anticipates that in-city warehousing and the quick-commerce model will play an increasingly significant role, with Delhi-NCR, Kolkata, and Bengaluru expected to lead the absorption trends in the coming year.
