Bengaluru posts 68% growth in industrial, logistics leasing

The IT hub recorded an increase in industrial and logistics leasing by 68%, between January and June this year, stated a report released on Friday by a real estate consulting firm.

According to “CBRE Industrial & Logistics Figures H1 2024”, total leasing between January and June this year stood at 3.4 million square feet, while it was 2 million square feet in the corresponding period last year. The supply stood at 3.2 million square feet from January to June this year.

The report also stated that during the first six months of the year, among the industry segments in Bengaluru, 3PL (third-party logistics) drove leasing with a share of about 54%, followed by ecommerce (13%) and retail (10%).

The key leasing transactions recorded in the city were made by VRL Logistics (leasing of 3 lakh square feet for warehouse), Blinkit (leasing of 3 lakh square feet in Sumadhura Logistics Park) and DHL (1.96 lakh square feet for warehouse), it said.

According to the report, apart from Bengaluru, Delhi-NCR and Kolkata dominated the leasing activity – the three cumulatively accounting for almost 58% of the overall space take-up in H1 2024.

"We anticipate (in the second half) a resurgence in leasing activity driven by a combination of factors, including increased demand from diverse sectors, the entry of new market players, and the availability of high-quality supply. These positive developments collectively contribute to an optimistic outlook for the I&L sector," said Anshuman Magazine, chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE.