New Delhi, Feb 23 (KNN) Warehousing leasing experienced a 7 per cent decline in 2023, attributed to reduced demand from e-commerce enterprises, as revealed by data from Cushman & Wakefield.

In contrast, industrial leasing surged by 23 per cent amidst a manufacturing upswing, reported BL.

In 2023, nearly 38 million square feet of warehousing space found tenants, with a notable portion of demand emanating from third-party logistics (3PL) operators, alongside manufacturing and retail firms.

This shift in leasing dynamics signals a burgeoning trend wherein e-commerce entities are increasingly outsourcing their logistics and warehousing functions to specialised 3PL providers, enabling them to concentrate on core business operations, as per the report.

The report highlights that the rise in manufacturing activity and enhanced capacity utilisation propelled industrial leasing to reach 16 million square feet in 2023.

“Logistics and Industrial segment in India has defied global uncertainties to achieve a stable growth for two years in a row,” said Abhishek Bhutani, MD, Logistics & Industrials, Cushman & Wakefield.

“This is fuelled by a confluence of factors, including strong economic and industry fundamentals, rapidly growing sectors like manufacturing and 3PL, and supportive government policies like the PLI scheme. We expect this momentum to continue in 2024, solidifying L&I as a key driver of Indian real estate growth,” he added.

(KNN Bureau)