Demand for Logistics & Warehousing space

Structural reforms including the awarding of infrastructure status and the implementation of GST Act, have bolstered demand for logistics and warehousing space in the country. As a result, demand has outstripped the supply according to JLL’s latest report, ‘Indian Logistics and Warehousing: Tracing the Lifecycle’.

Demand for Logistics & Warehousing space

The report said that annual demand of around 32 mn sq ft has outstripped the supply of 31 mn sq ft witnessed for the first time in the last four years. With the Jan-March period of 2019 already witnessing 8.4 mn sq ft. of absorption, it is expected to clock approx. 38 mn sq ft by end of 2019. With high demand, lease transactions have remained high, so far. Alongside the rise in transactions, the share of Grade A spaces leases has also gone up in the past four years. Of the total 32 mn sq ft of industrial and logistics leases in 2018, 56% were concluded in Grade A spaces.

Sectors such as 3PL/logistics, engineering, auto & ancillary, e-commerce, FMCG, retail and telecom & white goods have remained the biggest demand drivers. As a result of the high demand, logistics sector is expected to grow to US$ 215 bn by 2020.

Demand for Logistics & Warehousing space

  • Jan-March period of 2019 witnessed 8.4 mn sq ft of absorption
  • Structural reforms and implementation of GST bolstered demand for logistics and warehousing space
  • 56% of the total 32 mn sq ft of industrial and logistics leases in 2018 were in Grade A spaces
  • Indian logistics and warehousing industry expected to grow to US$ 215 bn by 2020
Ramesh Nair, CEO & Country Head, JLL India, said, “Favourable investment regulations have made the deployment of development funds a lot easier than it used to be in the past. Moreover, the infrastructure status has added strength to the development pace. GST implementation has brought in a uniform tax regime and has removed the challenges relating to logistics supply chain, making it easier for operators in the space to expand across geographies.”

Yogesh Shevade, Head - Industrial Services, JLL India, said, “There is huge potential in the logistics and warehousing sector. With high demand for high-quality logistics facilities and increasing market maturity, the space is set to grow from this stage. However, it continues to witness challenges on account of problems such as land aggregation, tax parity etc. Hopefully, we will see an easing of these challenges with further reforms.”

These developments has resulted in a regular upward trend in average rents in the past three years, and the trend is expected to continue in the coming years, the report added.

Demand for Logistics & Warehousing space

The liquidity infused by global investors is prompting the market to move towards organized and globally accepted warehousing space. Grade A/globally accepted warehousing space has more than 50% savings on rent per pallet position over Grade B spaces. While in operation, in the future we will see mechanized and automated material handling facilities, which will bring in the much-needed efficiency enhancement leading to a reduction of up to 30% in logistics cost. In a well-maintained warehousing facility, technology and planning of maintenance can optimize Common Area Maintenance charges significantly.
Click Here
To Know More or to Contact the Manufacturer
Please let us know your name.
Invalid Input
Please let us know your Designation.
Please let us know your Contact Number.
Please let us know your email address.
Please brief your query.
Our other Value-Added Services:

To receive updates through e-mail on Products, New Technologies & Equipment, please select the Product Category(s) you are interested in and click 'Submit'. This will help you save time plus you will get the best price quotations from many manufacturers, which you can then evaluate and negotiate.

Invalid Input
Invalid Input
Invalid Input
Lift and Shift India Pvt. Ltd (LSPL), a leading heavy-lift operator and project logistics company, achieved a record-breaking milestone by handling the heaviest single Module weighing 4532 MT for

Read more ...

Jignesh Patel, Director- Projects, Nabros Transport, discusses the company’s capabilities in handling complex infra development projects, ably supported by tech-driven innovations, automation

Read more ...

Edwards Moving & Rigging was awarded the contract to transport two turbines and generators weighing 698,865lbs – 947,988lbs (317 t - 430 t) in Fort Lauderdale to a power plant about 12 miles

Read more ...

When developing the new modular K25 L platform vehicle, SCHEUERLE focused on the transport safety of loads with a high centre of gravity. This is an important consideration, especially for fail-proof transport

Read more ...

Following the success of a trial loading operation performed in Denmark in mid-July, the DOLL wind blade transport system has been certified by Vestas. The system’s list of approvals now extends to every

Read more ...

As a pioneer and now a leader in the storage space industry, we have raised the standards and set a benchmark for safety, security, reliability, and flexibility, avers Ramesh Madisetty, CEO & Co-founder, SafeStorage.

Read more ...

Singapore-based Xander Investment Management (Xander) announced that its industrial platform has acquired an additional one million square feet of warehousing space in Free Trade and Warehousing Zone (FTWZ)

Read more ...

Apurva Mankad, Founder & CEO, WebXpress, is confident that given the company’s domain expertise and ground-level experience, the possibilities of growing with data are immense.

Read more ...

At the heart of any transportation management system, there are features like route optimization and 3D packing optimization; by leveraging these, a company can raise the bar in efficient delivery management

Read more ...

Our carefully crafted solutions and our bottom-up approach have led to improved visibility, better management of complex situations, higher productivity for our customers, and more operational efficiency

Read more ...

Leading furniture e-commerce WoodenStreet is planning to expand its current warehouse capacity 5-fold to 50 lakh sq.ft across India in the next 2-3 years, for which it has planned an investment of around 5 million

Read more ...

India’s cold storage capacity is likely to reach 40.7 million metric tonnes by 2023, rising 8.2% from 2020, as per Colliers’ latest report ‘Opportunities in Indian Cold Chain Assets.’ Colliers forecasts

Read more ...

IndoSpace, India’s largest developer and manager of Grade A industrial real estate and logistics parks, announced the acquisition of 55 acres at Farukhnagar in Haryana. This acquisition is a joint venture with Model

Read more ...

Lift and Shift India Pvt. Ltd (LSPL) - a leading Heavy-lift operator and Project Logistics company operating over 7 decades, has delivered another milestone by transporting 15 Heavy-lift and Over-Dimensional

Read more ...

The »STEPSTAR« - Goldhofer's new generation of self-tracking semi-lowloaders launched in 2020, is in great demand in the construction industry. The three- to five-axle semi-trailers offer haulage businesses superior

Read more ...

Mammoet has successfully completed the relocation of two tunnel boring machines and their components as part of the construction of a new metro tunnel in Melbourne, Australia. All operations were executed according

Read more ...

Jumbo and its commercial agent Wheel & Time execute one of the most prestigious coastal shipment handling Refinery, LNG, and Port Equipment in a record 29 days. Jumbo Maritime Group’s heavy lift vessel ‘MV Fairpartner’ recently

Read more ...

Mahindra Logistics Ltd. (MLL), one of India's leading third-party logistics (3PL) solutions providers, has signed an MoU with 1Bridge, a Bengaluru-based social enterprise and one of India’s largest village commerce networks

Read more ...

India's leading digital freight forwarding start-up Freightwalla announced joining hands with TradeLens - a blockchain enabled digital supply chain solution jointly developed by Maersk and IBM. The partnership will enable

Read more ...

DOLL is offering specially designed wind blade transport systems based on its proven series of trailers which are suitable for all types of blades in the market. A growing number of renowned transport companies

Read more ...

×
Sign-up for Free Subscription
'India Construction Week'
Weekly e-Newsletter on Construction Industry
Get the latest news, product launches, projects announced / awarded, government policies, investments, and expert views.