Demand for industrial & warehousing facilities rise to 22mn sq ft in 2021

The year 2021 saw leasing of about 22 million sq feet across warehousing and industrial facilities in the top 5 cities, steered by robust warehousing demand from the E-commerce segment and strong production growth. Demand for high-quality warehousing space was steered by 3PL (Third party logistics) players with a 33% share, followed by e-commerce companies with a share of 29% in total leasing. During the year, Delhi-NCR continues to lead industrial and warehousing demand with a share of 29%, followed by Pune and Mumbai at 21% and 20% each respectively. The majority of the space off-take was for warehouses, followed by industrial sheds.
“Robust leasing momentum was witnessed in 2021 irrespective of the fact that the Covid-19 situation continues to evolve. Supply introduction in most markets is witnessing a strong revival in spite of material price escalation continuing to be a challenge. The Grade A absorption across key cities stood at 22 million sq ft with E-commerce and 3PL sectors once again dominating the space uptake. We are witnessing industrial demand pick up across cities such as Chennai, Pune and Delhi-NCR. We are also witnessing active leasing inquiries in emerging Tier II markets on account of the need for last mile delivery for customers.” said, Shyam Arumugam, Managing Director, Industrial and Logistics Services, Colliers India.