Increase in leasing of warehouse space due to e-commerce
The increase in India’s e-commerce sector has led to the sudden increase in demand for warehousing space from online retailers which leased about 6 lakh sq ft areas in the first half of 2014, according to property consultant CBRE.
The leasing activities in the logistics and warehousing market remained steady as large sized transactions of around 1-2.5 lakh sq ft have been reported during the first hald of 2014. The statement was made by CBRE.
The NCR, Chennai and Mumbai has accounted for the bulk of leasing activity during H1 2014. The automotive, FMCG, commerce and third party logistics sectors have been stated to be the principle drivers of demand for warehousing space. As stated according to the latest movements in the Indian e-Commerce arena, it was interesting to note that the increased demand for warehousing and distribution of the centre space from online retailers such as Flipkart, Myntra and Amazon, among others. The emerging retail segment has been successful in taking up approximately 0.6 million sq ft of warehousing space all across Mumbai, Chennai, Bangalore and Delhi NCR especially during the first six month of this year.
Source: The Economic Times
