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HYDERABAD: Third party logistics (3PL) players and e-commerce giants drove industrial and logistics space absorption in the Hyderabad market for the first half of 2022, accounting for 67% of the total 1.5 million square feet space taken up in the period, a report by CBRE South Asia Pvt Ltd said.
While 3PL players accounted for 46% of the space take-up during H1 of 2022, e-commerce companies accounted for 21% and retailers about 9%, said ‘CBRE Industrial & Logistics Figures H1 2022’ report.
During this period, e-commerce giant Flipkart leased 2.75 lakh sqft in an independent warehouse, TCI Supply Chain Solutions leased 2 lakh sft in Indian Logistics Warehouse and Safexpress leased 1.4lakh square feet in an independent warehouse.
According to CBRE, the expansion by 3PL firms led space take-up in the northern corridor of the city during H1 of 2022, and resulted in a 23-25% rise in rentals in this area as compared to 5-12% in the southern, eastern and westerns corridors.
However, just like most of the major cities in the country, Hyderabad too reported a decline in I&L space absorption during H1 of 2022 as compared to the 1.8 million sq ft leased during H1 of 2021. The supply of space, however, increased during H1 of 2022 to 0.9 million sq ft from 0.5 million sq ft in H1 of 2021.
Though I&L sector leasing in the top markets of the country declined 9% to 12.8 million sq ft during H1 of 2022 but CBRE said leasing activity was expected to improve as continued land acquisitions and development completions were lined up for H2 of 2022.
While 3PL players accounted for 46% of the space take-up during H1 of 2022, e-commerce companies accounted for 21% and retailers about 9%, said ‘CBRE Industrial & Logistics Figures H1 2022’ report.
During this period, e-commerce giant Flipkart leased 2.75 lakh sqft in an independent warehouse, TCI Supply Chain Solutions leased 2 lakh sft in Indian Logistics Warehouse and Safexpress leased 1.4lakh square feet in an independent warehouse.
According to CBRE, the expansion by 3PL firms led space take-up in the northern corridor of the city during H1 of 2022, and resulted in a 23-25% rise in rentals in this area as compared to 5-12% in the southern, eastern and westerns corridors.
However, just like most of the major cities in the country, Hyderabad too reported a decline in I&L space absorption during H1 of 2022 as compared to the 1.8 million sq ft leased during H1 of 2021. The supply of space, however, increased during H1 of 2022 to 0.9 million sq ft from 0.5 million sq ft in H1 of 2021.
Though I&L sector leasing in the top markets of the country declined 9% to 12.8 million sq ft during H1 of 2022 but CBRE said leasing activity was expected to improve as continued land acquisitions and development completions were lined up for H2 of 2022.
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