Industrial & logistics leasing up 43% at 2.1 mn sq ft in H1
The e-commerce cos drove leasing activity with 48%, followed by 3PL firms with 23% and engineering & manufacturing with 11%
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Hyderabad The industrial & logistics (I&L) space leasing in Hyderabad increased by 43 per cent Y-o-Y and stood at 2.1 million sq ft in January-June (H1) of 2023 compared to 1.5 million sq ft in corresponding period last year. The city recorded 1.7 million sq ft of supply addition in during H1’23, says a latest report by real estate consulting firm CBRE South Asia Pvt Ltd.
According to ‘CBRE Industrial & Logistics Figures H1 2023’ report, the e-commerce firms drove the leasing activity with a maximum share of about 48 per cent, followed by 3PL (third-party logistics) firms with 23 per cent and engineering & manufacturing with 11 per cent among all the industry segments in the Hyderabad during H1’23.
As per the report, the key lease transactions recorded in the city include a large e-commerce player leasing 10 lakh sq ft in ESR Logistics Park, DHL leasing 2.76 lakh sq ft in an independent warehouse and a large FMCG player leasing 99,000 sq ft in an independent warehouse. In the city, small-sized deal closures dominated space take-up in H1’23.
On a pan-India basis, the report highlights a 35 per cent Y-o-Y surge in total leasing in the I&L sector, which stood at 19.1 million sq ft across eight cities during H1’23 period. The leasing activity is expected to sustain its momentum in the H1’23 period, which is expected to be partly driven by festive season sales observed across the country.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, “The second half of the year foresees a consistent influx of leasing activities, paving the way for an estimated 32-36 million sq ft uptake of the I&L space in 2023. This growth trajectory will be predominantly propelled by the 3PL sector as they continue to implement a 'multipolar' supply chain strategy.”
The space take-up by engineering & manufacturing firms is also expected to remain strong led by the persistent endeavors of the government to enrich the investment landscape, attracting both global and domestic manufacturers to establish operations within India. In addition, we anticipate increased interest from FMCG, retail and electronics & electrical firms attributed to the surging consumer demand.
Furthermore, a slight improvement in e-commerce leasing sentiments is on the horizon, fuelled by the forthcoming festive season sales nationwide.
