E-commerce grabs bigger space in warehouse leasing
10-25% – Rents rose last year on demand for better quality space
Leasing of warehousing space went up by over 45% last year, driven by e-commerce, according to property consultant CBRE
25 mn sq ft – Space leased in seven major cities in 2018
10-25% – Rents rose last year on demand for better quality space
60 million sq ft – Expected supply in warehousing and logistics space by 2020-end, of which:
22 mn sq ft – To be in grade-A category
23% – Share of e-comm in warehousing leasing last year
10% – It was in 2017
The outlook
- Continued demand from e-tailers, policy impetus and growing demand from tier-II cities to drive leasing
- Modern tech-powered warehouses will be in more demand
- Expect addition of more variables to the warehousing equation - supply chain modernisation, growing foray of tech and artificial intelligence, optimisation of delivery networks and greater synergy between retail and logistics networks
The impressive growth of the e-commerce sector has been on the back of favourable policy reforms, tech-enhanced warehouses, rising smartphone and internet penetration, digital India movement, amongst others"