Real-estate and retail are finding more meeting space as developers venture into warehousing and logistics. State governments of Maharashtra, Uttar Pradesh, West Bengal, Haryana, and Chhattisgarh are also focusing on warehousing and logistics sectors. “The status of industrial and infrastructural development is now given to these sectors.” Another key reason for the growth in this segment is “Make in India” initiative. Post implementation of GST, banks have also opened up funding for these sectors at attractive rates of interest making it easier to obtain funding for these segments than commercial & residential projects.
To understand warehouse logistics, it is good to understand the logistics that means detailed planning, organization, and enforcement of complex operations. It is about the flow of both physical goods and information. So, warehousing & logistics encompasses all the varied operations – organization, management, and movement – involved in warehousing. It also involves policies, procedures, and logistic tools to keep your warehouse operations running smoothly.
The Evolution of Logistics Real Estate Clusters
The growth of real estate logistics is driven by three main factors: The growth of consumers – driven by population, employment and wages- can be considered as the primary factor of the rise of logistics demand. Geographic positioning along with global trade routes has also contributed to the growth of logistics cluster. The third factor is the modernization of the supply-chains. Now-a-days, the warehousing question has changed from “what can I fit in this space?” to “what space can fit me?” The possible reason could be companies are expanding, fueled by the rise of e-commerce trading and new logistics technologies. People involved in e-commerce trading demand warehouse close to metropolitan areas to reduce the product delivery time. Statistics show that the country has witnessed a tremendous growth for past three years concurrent with a huge demand by small, mid, and large scale corporates for quality space that features modern inventory management system and technologies for the seamless execution of different warehousing & logistics operations. With the government’s support, policy reforming initiatives, and undertaking various infrastructure measures, India might soon emerge as the most preferred warehousing and logistics destination across the globe.
A report says logistics leasing in India has crossed a record 13 million sq ft in the first half of 2019. This figure corresponds to 31 % year-on-year growth. Approx. 60 % of the space leased is in Bengaluru, Chennai, and Mumbai. This demand is pushed by third-party logistics entities and companies involved in manufacturing & engineering. Statistics also show that the supply addition in the warehousing and logistics sector recorded a growth of 54 % in the first half of the current year, 2019, as compared to the previous year, 2018.
More than 11 million sq ft of logistics space was added to the inventory in the first half of the current year. Leading industry players, a few of them having presence in the global market, have already entered in the market and it is estimated that around 60 million sq ft of logistics space will be in different stages of handover in the coming two years.
One can count on Talreja Advisory & Consultancy Services for finding warehousing facility on rent/ lease. We also provide solutions for warehousing facility development and logistics management. With an in-house team of professionals, we have been successfully maintaining a database of the available spaces; update it at regular intervals and assist clients in finding the best deal suiting their functional needs. With our services, we carry out every task- scheduling visits to warehouse, price negotiation, paperwork and final acquisition – as per the norms of the industry. The company is based in Mumbai (Maharashtra, India); feel free to schedule an appointment as per your conveyance.