Industrial, warehousing space demand falls 12% in September quarter in 5 cities: Colliers

New Delhi, Leasing of industrial & warehousing space fell 12 per cent during the July-September period to 6.2 million square feet across five major cities on lower demand in Delhi-NCR and Bengaluru, according to Colliers India. The leasing of industrial and warehousing space stood at 7 million square feet in the year-ago period.

During the January-September period, the demand fell 4 per cent to 17.2 million square feet from 18 million square feet in the corresponding period of the previous year.

According to Colliers data, the leasing of industrial & warehousing space in Chennai jumped more than 3-fold to 1.8 million square feet during the July-September period from 0.5 million square feet in the year-ago period. The demand rose 60 per cent to 3.5 million square feet during the January-September period over 2.2 million square feet in the corresponding period in the previous year.

In Mumbai, the demand jumped over 2-fold to 1.2 million square feet in the third quarter from 0.5 million square feet in the year-ago period. During the first nine months of this year, the leasing rose 48 per cent to 3.9 million square feet from 2.7 million square feet.

The leasing of industrial & warehousing space in Pune increased 22 per cent to 1.6 million square feet during July-September from 1.3 million square feet in the year-ago period. Pune saw a marginal rise of 1 per cent to 4.1 million square feet in January-September from 4 million square feet in the corresponding period of the previous year.

In Delhi-NCR, the demand fell 76 per cent to 0.9 million square feet during July-September from 3.8 million square feet a year ago. The leasing fell 46 per cent to 3.7 million square feet during January-September from 6.8 million square feet in the corresponding period of the previous year.

The demand for industrial & warehousing spaces in Bengaluru was down 21 per cent to 0.7 million square feet in July-September from 0.9 million square feet in the year-ago period. The leasing declined 10 per cent to 2 million square feet during the first nine months this year as against 2.3 million square feet in the corresponding period of the previous year.

The consultant said third-party logistic (3PL) players continued to dominate demand during the January-September period at 40 per cent share followed by engineering players garnering 17 per cent.

At the same time, leasing by FMCG jumped over two-fold as they expanded their presence in key markets such as Delhi-NCR and Pune.

The rise in leasing levels for the FMCG sector largely pertains to the spurt in consumption levels over the last two quarters, which is likely to continue in the last quarter as well, led by the upcoming festive season, it added.