Demand for Logistics & Warehousing space Outstrips Supply; sector to clock ~38 mn sqft by 2019-end

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.

Lifting & Specialized Transport, July-September 2019

Click Here
To Know More / Contact The Manufacturer
Please provide your details we will contact you as soon as possible
Choose Title from the listPlease let us know your name.
Please let us know your Designation.
Invalid Input
Please let us know your email address.
Please let us know your City.
Please let us know your Contact Number.
Please brief your query.
Our other value-added services:

To receive updates through e-mail on Products, Technologies, equipment, please Select the Product Category(s) you are interested in and click Submit. This will help you not only to save time but also to get best quote for right products from many manufacturers of the same category; it helps you to evaluate and negotiate the best price.

Equipment & Machinery
Invalid Input
Building Products
Invalid Input

Spectacular heavy transport over 1,400 km in Australia: SCHEUERLE WideCombi ensures high transport efficiency for Doolan's Heavy Haulage

Australian heavy-duty specialists from Doolan’s Heavy Haulage have transported two 160-ton crusher components using WideCombi axle lines made by SCHEUERLE. Due to the low dead weight and low height of the transport Read More ...

SpeditionTrettin has relied exclusively on MEILLER tippers for generations

Hans-Otto Trettin and his son Lukas chose the right time to reorient their company, as the future of the transport business for the mining industry looked bleak with the closure of the last mines. The mainstays Read More ...

Eicher launches BS-VI solution - EUTECH6; unveils new-gen vehicles across 4.9T- 55T

Leading commercial vehicle manufacturer, VE Commercial Vehicles Limited, (VECV) unveiled its entire BS-VI range of trucks and buses across 4.9- 55T tagged with Eicher’s innovative BSVI solution - EUTECH6. The new platform Read More ...

First Cometto MSPE delivery to Taiwan

The total volume for the Taiwanese equipment manufacturer includes two 6-axle modules type MSPE 6/4/2,43 with an axle load of 40t, two power packs with an output of 110 kW each, and numerous additional accessories. The complete Read More ...

Effect of COVID-19 on Road Logistics and Impact on Movement of Goods

The Transportation sector has been one of the primary victims of COVID-19. From rickshaw pullers to the airlines, all have been affected economically by the pandemic. India's overall energy demand fell by 14% in March-April 2020 Read More ...

Goldhofer’s new »STEPSTAR« semi lowloader gives higher payloads and greater flexibility

With the »STEPSTAR« series, Goldhofer has added a new generation of self-tracking semi lowloaders to its extensive range of heavy-duty and special transport solutions. The three- to five-axle semi-trailers offer haulage Read More ...

Bolster or Turntable

A bolster or turntable is a device (or rather a set of devices) that allows long loads to be transported on two transporters, with a relatively short length, instead of one single transporter with a length (almost) equal Read More ...

Tiger Logistics - Handling Project Cargo with Skill & Efficiency

Tiger Logistics (India), a multimodal transport operator (MTO), is involved in transportation and custom clearance of project cargo across the country. Time and again, it has demonstrated its skills and achieved new heights Read More ...

Everest Engineering: Moving to Heavy Machines

Keen to help construct India’s high-speed railway projects, metro rails, flyovers, bridges, etc, Everest Engineering Equipment has decided to foray into the Heavy Machinery segment, informs PV Ramdev, Managing Director. What new product Read More ...

Wind Energy On The Go

As the wind generator components are becoming bigger, the challenges for the transport contractor are also becoming bigger. Where the blades used to measure 18 – 24 mtr and could be transported on extendible trailers, they can now Read More ...

Faymonville offering multi-faceted technical solutions to meet every transport challenge in North America

The Faymonville Group offers special trailers that combine cutting-edge technology with extremely practical development, especially tailored to the US market needs, at booth F.2872. HighwayMAX: The steerable 9-axle (3+3+3) HighwayMAX Read More ...

SCHEUERLE focuses on modular transporter SCHEUERLE SPMT PowerHoss

SCHEUERLE is presenting the SCHEUERLE SPMT PowerHoss with four axle lines and a diesel drive at booth F3264. These compact, self-propelled transport modules are also specialists for heavy in-house transport. So far, this operated Read More ...

Goldhofer: Moving Big Things

Visitors to Conexpo, the largest construction trade show on the American continent, will find a whole range of solutions at the Goldhofer outdoor stand (F7310A) for transporting oversized and ultra-heavy loads more easily Read More ...

India’s Logistics Space Set to Outperform Global Benchmarks

India’s logistics sector was valued at US$ 160 billion in 2018 and is expected to grow to US$ 215 billion by 2020. Today, almost 90% of cargo movement is handled by roadways and railways in the country. Globally, India has the Read More ...

LASO Transportes relies on THP/SL heavy-duty modules by Goldhofer

When the Portuguese special transport company LASO Transportes SA was awarded the contract to transport a 28,8m long and almost 165 t heavy metal component from Vale de Cambra to the port of Leça da Palmeira (about 60 km away) for shipment Read More ...

Mahindra BLAZO established as country’s most fuel-efficient truck

Mahindra Truck and Bus (MTB), a part of the USD 20.7 billion Mahindra Group, has announced that its BLAZO range of trucks has become the market leader in terms of mileage within the trucking industry. The BLAZO range has achieved Read More ...
NBM&CW

New Building Material & Construction World

New Building Material & Construction World
MGS Architecture

Modern Green Structures & Architecture

Modern Green Structures & Architecture
L&ST

Lifting & Specialized Transport

Lifting & Specialized Transport
II&TW

Indian Infrastructure & Tenders Week

Indian Infrastructure & Tenders Week