Over 110 mn sq ft Grade-A warehousing stock available in India: Binswanger-ANAROCK Report

According to a joint report by Binswanger Commercial Real Estate Services and ANAROCK Group focusing on ‘Indian Industrial & Logistics – Gearing Up a Global Manufacturing Hub’, high-intensity focus on making India a global manufacturing hub has caused warehousing clusters to expand rapidly beyond the top cities and into tier 2 and 3 cities. The report says that demand for small and multi-location warehouses is expected to rise significantly. Most of these emerging clusters are aligned with the industrial and freight corridors being developed in the country. The emerging tier 2 and 3 warehousing clusters include Ludhiana, Ambala, Lucknow, Siliguri, Guwahati, Bhubaneshwar, Vishakhapatnam, Vijaywada, Coimbatore, Kochi, Nagpur, Indore, Jaipur and Dholera. Shobhit Agarwal, MD & CEO, ANAROCK Capital says, “The rising demand for Grade-A warehousing properties across the country is a key trend. Our data indicates that there is more than 110 mn sq. ft. of Grade-A warehousing stock available across the country – most of it in the top 8 cities. 3PL (third-party logistics) and e-commerce are the largest occupiers of warehousing space. There is a massive opportunity for Grade-A warehousing development in the smaller cities amidst rising demand.”
The report highlights that nearly US$ 7 billion worth platforms have been created for the warehousing sector since 2015. Over US$ 2 billion in PE investments have been infused in the industrial and logistics sector between 2017 and Q1 2020. Investors are upbeat on this sector and are working closely with developers to identify warehousing investment opportunities.