3PL Firms Rent 41% of India's Industrial & Warehousing Space in 2024: CBRE

New Delhi, Jan 30 (PTI) Third-party logistics (3PL) firms rented 41 per cent of the total 395 lakh square feet of industrial and warehousing spaces leased during the last year across eight major cities, according to CBRE.

Real estate consultant CBRE said there has been a strong leasing momentum in the Industrial and logistics (I&L) segment during the 2024 calendar year.

"I&L leasing in the country reached a peak of 39.5 million (395 lakh) square feet in 2024 across the top eight cities, supported by a robust supply addition of 386 lakh square feet last year.

Delhi-NCR, Bengaluru and Kolkata accounted for almost 60 per cent of the leasing activity during the year. Mumbai, Chennai, and Bengaluru emerged as the key contributors to supply addition, collectively accounting for over half of the total supply in the last year.

"The I&L space take-up was predominantly steered by the third-party logistics (3PL) players, accounting for around 41 per cent share in the overall leasing activity in 2024," the consultant said.

Engineering and manufacturing (E&M) firms also remained active, registering a space take-up share of about 18 per cent during the last year.

"The impressive growth in the industrial and logistics sector highlights its resilience, even amidst global economic uncertainties. Leasing activity remained strong across key cities in 2024," Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE, said.

The dominance of 3PL providers underscores their pivotal role in shaping the sector's future, he added.

"Additionally, we expect the in-city warehousing and quick-commerce concept to become even more significant in 2025. Delhi-NCR, Kolkata and Bengaluru are anticipated to lead the absorption activity in 2025," Magazine said.

Ram Chandnani, Managing Director - Advisory & Transaction Services at CBRE India, said, "Acknowledging the opportunities in untapped tier-II markets, occupiers are increasingly focusing on establishing local distribution networks to enhance proximity to a larger population and optimise their operational costs."

Occupiers and investors are expected to remain active in India's leading tier-II cities, with Chandigarh, Hosur, Jaipur, Lucknow, and Vishakhapatnam projected to be the key focal points for warehousing expansion in these emerging regions, he added.