The surge in quick commerce pilot programs by major e-commerce giants promises a leasing boom, especially for in-city warehouses and last-mile delivery hubs, says CBRE’s latest report. Over 80% of global and Indian occupiers operating in India plan to expand their warehousing portfolio within two years, shifting strategically toward faster delivery times. Despite global economic uncertainties, occupier appetite for quality warehousing remains robust, with 2025 space take-up expected to surpass 2024 levels. Increased demand from 3PL, e-commerce, and retail sectors drives this growth. Developers focus on Grade A warehousing, offering advanced features such as automation readiness and ESG compliance. Key cities like Bengaluru, Chennai, Delhi-NCR, and Mumbai will lead supply growth, though project delays loom due to limited land and rising costs.
CBRE’s ‘2025 India Logistics Occupier Survey’ reveals a strategic shift in supply chains toward shorter delivery times. Over 80% of occupiers plan to grow their warehouse footprint in the next two years, driven by booming e-commerce and 3PL sectors. The ‘India Industrial and Logistics Figures H1 2025’ report projects 2025 warehousing space take-up will exceed 2024’s numbers, highlighting strong demand despite macro-economic challenges. Developers respond by focusing on high-quality Grade A spaces with better floor loads, safety standards, and automation readiness. This trend indicates an evolving market that prioritizes operational efficiency and sustainability.
| Factor | Details |
|---|---|
| Occupiers expanding warehouses | Over 80% planning growth within 2 years |
| Key growth cities | Bengaluru, Chennai, Delhi-NCR, Mumbai |
| Project challenges | Land scarcity, rising acquisition costs |
| Rent growth | 2-11% expected in select cities by 2025 |
| Developer focus | Grade A facilities, automation, ESG compliance |
Developers concentrate on creating Grade A warehouses with enhanced capabilities to meet market demands, including ESG compliance and automation. The supply pipeline for 2025 remains strong, supported by institutional investors, with Bengaluru, Chennai, Delhi-NCR, and Mumbai as key contributors. However, CBRE notes potential delays in project completion due to limited land availability and rising acquisition costs. As a workaround, developers increasingly pursue peripheral locations, infrastructure corridors, and brownfield projects. Warehousing rents are projected to rise, fueled by flight-to-quality sentiments and higher land and input costs.
CBRE highlights that rental growth will be fragmented but generally positive, driven by investment-grade developers adding features like docking stations, green certifications, and automation to differentiate properties. Cities like Hyderabad, Pune, Bengaluru, Chennai, and Ahmedabad are set to witness 2-11% rent growth year-on-year by the end of 2025. This growth reflects a maturing market where quality, location, and sustainability increasingly determine leasing and rental dynamics.
(From ANI)
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