Despite global uncertainties, 2023 marked milestone with I&L leasing activity achieving peak of 38.8 mn sq. ft., surpassing previous high of 36 million square feet in 2022. While e-commerce recalibrated towards rofitability, 3PL emerged as a stalwart, commanding 45% share of total leasing volumes.
CT Bureau
This year, the demand for advanced warehousing facilities is likely to rise, with key features gaining more traction. Driven by robust demand from 3PL firms leveraging extensive distribution networks and followed by E&M sectors, the warehousing landscape in 2024 expects a surge in e-commerce activity for compact delivery centres, prompting occupiers to explore facility consolidation options.
Retail, FMCG, auto, electronics and electricals sectors are poised to contribute to overall demand. Warehouses with high ceilings, sturdy floors, leak-proof thermal insulation, pre-installed dock levelers, ample loading and unloading zones, reliable back up power sources, and robust fire safety systems are likely to become prevalent. Looking ahead, while large-scale transactions continue to grow, transactions over 100,000 aquare feet increase from 27 per cent in 2019 to 31 per cent in 2023. The focus this year is on leasing within the
50,000 to 100,000 square fet range as occupiers sustain momentum in optimising their logistical footprint.
Manufacturing units are projected to exhibit a preference for ready-built, plug-and-play infrastructure within industrial clusters. These solutions are likely to reduce capital expenditure for occupiers and ensure immediate operations, as they provide access to shared amenities and infrastructure within the cluster.
By adopting these high-specification warehousing features and ready-build facilities, the firms can enhance their operational efficiency, reduce costs, and adapt to the changing needs of logistics and manufacturing sectors.
The combination of rising end-user demand rapid delivery and tight labour markets, which will continue to spur warehouse automation and near-stocking at consumption points and service locations.
