Industrial and Logistics (I&L) leasing touched a historic high of 33 million sq. ft. in 2019, an increase of more than 30% on an annual basis. Bangalore dominated the leasing activity, followed by NCR and Mumbai; together, these cities accounted for about 60% of the overall space take-up.
3PL firms accounted for about half of the leasing activity in 2019, up from 36% in 2018 to 48% in 2019. They were followed by e-commerce players (18%) and retail firms (11%).
Supply addition in 2019 crossed 19 million sq. ft., rising by about 78% as compared to 2018. About 70% of this supply was reported in NCR, Mumbai and Chennai.
Sustained occupier interest towards locating in quality developments resulted in annual rental growth across key micro-markets of NCR, Bangalore, Chennai, Hyderabad, Kolkata and Ahmedabad.
Leasing and supply are expected to cross 30 million sq. ft. and 20 million sq. ft., respectively, in 2020.