CHENNAI: Chennai gained market share in logistical and industrial warehouse leasing activity in 2023, driven by demand from third-party logistics players and manufacturing, according to a report.
The city remains the second biggest logistics market in the country after Mumbai with 19%, despite decline in the sector. The city comes second after Pune in industrial warehousing space holding 24% of the market, showing a strong presence of the manufacturing activity, according to real-estate intelligence firm Cushman and Wakefield’s annual Logistics and Industrial report.
Chennai witnessed 10.78 million sq.ft. (msf) of overall leasing activity in 2023, over 5.16 msf recorded in 2022. Warehouse leasing activity stood at 6.97 msf, nearly two-fold increase compared to 2022.
Oragadam submarket, the key industrial corridor of electronics and automobile manufacturing, apart from logistics players, witnessed a gross leasing of 2.14 msf, growing five times compared to 2022, the report noted. Demand was mainly driven by third-party logistics contributing 64% to the yearly gross leasing activity, followed by the engineering and manufacturing sector with a 31% share, it said. Third party logistics players serving clients in fast moving consumer goods (FMCG) and engineering and manufacturing spaces were active.