CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm report highlights Industrial & Logistics(I&L) sector leasing across 8 tier-II cities stood at ~5 mn. sq. ft. during Jan-Sep 2023. These 8 cities include Chandigarh, Jaipur, Lucknow, Coimbatore, Hosur, Indore, Nashik and Vadodara. Top cities leading that led the leasing activity include Chandigarh, Jaipur, and Lucknow.
According to the report, Tier-II cities are fast emerging as the next growth frontier for the I&L sector. The total I&L stock in the 8 tier-II cities stood at about 46 mn. sq. ft. as of Sep ‘23, with Chandigarh, Jaipur, and Lucknow dominate the I&L stock of more than 6 mn. sq. ft. The total I&L supply recorded in these 8 cities was ~13 mn. sq. ft. during Jan-Sep ’23. Top cities dominating supply addition in Jan-Sep ‘23 include Chandigarh, Hosur and Jaipur.
With the appetite for quality warehousing space expected to remain strong in 2024, tier-II cities, are now witnessing increased activity in the form of world-class integrated logistics parks backed by institutional funds, new industrial parks backed by the state governments and leasing of contiguous space in investment-grade facilities by multi-national companies.
The report indicates that tier II cities like Lucknow, Chandigarh, Nashik, Hosur and Coimbatore are emerging as the central industrial corridors, with Indore, Chandigarh, Coimbatore, Lucknow, Nashik and Jaipur airports being equipped with cargo handling units. Major warehousing occupants, including Amazon, Flipkart, Nestle, and Asian Paints, have established their presence in multiple cities such as Jaipur, Lucknow, Coimbatore, Hosur, Nashik, Vadodara and Indore.
