Demand for Grade A, B,C warehouses expected to reach 1.2 bn sq. ft. by 2027: JLL

According to a report by JLL and Miebach Consulting titled, ‘Future of logistics, the demand for warehouse space is projected to reach approximately 1.2 billion sq. ft. by 2027 across Grade A, B & C warehouses across all Indian cities. This growth is not just about quantity, but quality as well. The report highlights a significant shift towards Grade A warehousing, with stock expected to grow to an impressive 400 million sq-ft by 2027 from 290 million sq-ft in 2023. E-commerce, Third-Party Logistics (3PL), and omni-channel retail are emerging as the primary drivers of this warehousing boom, particularly for high-quality Grade A spaces. However, the landscape of growth is changing. While major cities have traditionally dominated the warehousing sector, Tier II and III cities are now emerging as the next frontier. The report reveals a striking 41% increase in warehouse space absorption in Tier II plus markets from 2022 to 2023.