India >> Maharashtra >> Mumbai City

Mumbai Metropolitan Region achieves record 9.9 Million sq. ft in industrial & logistics leasing in 2023

Synopsis

In 2023, the Mumbai Metropolitan Region (MMR) achieved a historic milestone with an all-time high of 9.9 million square feet in Industrial & Logistics (I&L) leasing, fueled by robust activities in the second half. Dominated by third-party logistics (3PL) players at 73%, the MMR leasing dynamics showcased remarkable growth. Nationally, the I&L sector recorded a peak of 38.8 million square feet in leasing activity across eight cities, driven by structured operational models and increased demand for last-mile delivery solutions. The sector's resilience and strategic realignment has set the stage for continued growth.

10 sec backward button
play pause button
10 sec forward button
0:00
0:00

In 2023, the Mumbai Metropolitan Region (MMR) achieved an unprecedented milestone, reaching an all-time high of 9.9 million square feet in Industrial & Logistics (I&L) leasing, as indicated by the 'CBRE Industrial & Logistics Figures H2 2023' report from CBRE South Asia Pvt Ltd, a prominent real estate consulting firm. This remarkable achievement was driven by robust leasing activities during the July-December period, contributing a substantial 5.3 million square feet.



Leasing dynamics in the MMR were dominated by third-party logistics (3PL) players, commanding an impressive 73% share. Engineering and manufacturing sectors followed at 16%, with retail firms contributing 10% to the leasing activity in the MMR region in 2023. Notably, Bhiwandi emerged as a front-runner in space occupancy.



Several key leasing transactions took place in the MMR during this period, with global footwear brand Skechers leasing 10 lakh sq ft in Lodha Industrial and Logistics Park, delivery player Delhivery securing 6.5 lakh square feet in Welspun One Logistics Park, and global transport and logistics player DSV leasing 6.5 lakh square feet in Arham Logistics Park-Phase II. In August 2023, investment from Morgan Stanley Real Estate Investing (MSREI) was directed towards Prakhhyat Group's 0.7 million square feet Grade A warehousing space in K Square Logistics Park in Bhiwandi.



On a national scale, the Industrial & Logistics (I&L) sector achieved an unprecedented high, recording 38.8 million square feet in leasing activity across the top eight cities in 2023, representing an 8% year-on-year growth. The shift towards more structured operational models, particularly in retail, FMCG, and manufacturing industries, fueled the increased demand for efficient last-mile delivery solutions. Warehouse solution providers actively explored markets to meet this demand, contributing to a historic peak in total I&L supply at 36 million square feet.



While Mumbai led with 9.9 million square feet of I&L leasing in 2023, Delhi-NCR witnessed 7 million square feet of leasing, followed by Bengaluru with 4.7 million square feet. Chennai and Hyderabad also recorded all-time highs of 4.3 million square feet each, followed by Kolkata with 3 million square feet, Ahmedabad (2.2 million square feet), and Pune (1.7 million square feet). Delhi-NCR, Chennai, and Kolkata played pivotal roles in driving supply addition during 2023, collectively accounting for a cumulative share of 58%.



Pan-India I&L leasing in 2023 was predominantly steered by 3PL players, commanding a share of approximately 45%. Within this sector, occupants from diverse industries, including e-commerce, retail, and manufacturing, chose to outsource their supply-chain operations to 3PL firms. This strategic move aimed to meet storage requirements, attain increased flexibility, reduce costs, and overcome challenges associated with labour sourcing.



The report also highlights a significant contribution from domestic occupiers to the leasing activity. Leasing by engineering and manufacturing companies rose from 10% in 2021 to 17% in 2023. Proactive government policies, boosted by initiatives such as the Production Linked Incentive (PLI) scheme, played a pivotal role in fueling the growth of domestic engineering and manufacturing firms.



In conclusion, the record-breaking I&L leasing activity in the MMR and across India in 2023 underscores the resilience and dynamism of the sector. The dominance of 3PL players, coupled with the proactive involvement of domestic occupiers, sets the stage for continued growth and strategic realignment in the industrial and logistics landscape. As the industry navigates evolving dynamics, these trends are set to shape the trajectory of the sector in the coming years.

Have something to say? Post your comment

Recent Messages

Advertisement