Leasing in the industrial and logistics (I&L) sector reached an all-time high of 39.5 million square feet in CY 2024 across the top eight cities, a remarkable milestone driven by a substantial supply addition of 38.6 million square feet, according to the latest report by CBRE South Asia Pvt Ltd, titled ‘CBRE Industrial & Logistics Figures H2 2024.’ The report emphasises the continued momentum in leasing, with strong activity across various regions. Notably, Delhi-NCR, Bengaluru, and Kolkata were the leading contributors, together accounting for almost 60 per cent of the total leasing activity during the year.
Mumbai, Chennai, and Bengaluru stood out in terms of supply addition, collectively contributing to over half of the new space in CY 2024. The report identifies third-party logistics (3PL) players as the dominant force in space take-up, with these firms accounting for 41 per cent of the leasing activity. Additionally, engineering and manufacturing companies maintained a strong presence, with an 18 per cent share in the overall space absorption.
Interestingly, the space uptake was predominantly driven by smaller transactions, with those under 50,000 square feet representing 43 per cent of the total leasing volume. Medium-sized transactions (ranging from 50,000 to 100,000 square feet) and larger transactions (exceeding 100,000 square feet) each comprised 28 per cent of the total activity.
Anshuman Magazine, Chairman and CEO of CBRE for India, Southeast Asia, Middle East & Africa, highlighted the resilience of the I&L sector amidst global economic uncertainties, predicting further growth in 2025. He anticipates that in-city warehousing and the quick-commerce model will play an increasingly significant role, with Delhi-NCR, Kolkata, and Bengaluru expected to lead the absorption trends in the coming year.
Indiaโs warehousing and intralogistics sector is entering a new phase of growth, driven by the rapid expansion of e-commerce, quick commerce, manufacturing, and third-party logistics. Against this backdrop, Godrej Enterprises Group (GEG) has marked the 25th anniversary of its Chennai manufacturing facility, reaffirming its commitment to advancing Indiaโs logistics infrastructure through continued investments in automation, engineering excellence, and next-generation warehousing solutions. A cornerstone of the companyโs Storage Solutions business, the Chennai facility has evolved into one of the regionโs largest and most advanced intralogistics manufacturing hubs. Backed by over seven decades of expertise in intralogistics, the business has announced further investments across its Chennai and Bengaluru operations to strengthen production capabilities, accelerate innovation, and support the growing demand for intelligent warehousing infrastructure. The milestone comes at a time when warehousing is becoming increasingly critical to supply chain resilience and operational efficiency. With annual warehousing absorption in India crossing approximately 39 million sq. ft., demand for automated, high-density storage systems continues to rise as businesses seek greater speed, scalability, and cost efficiency across their supply chains. Over the past 25 years, the Chennai facility has expanded its manufacturing and engineering capabilities to deliver complex intralogistics projects with greater precision and faster execution. Today, it produces advanced systems that support automated warehouses, high-density storage environments, and large-scale distribution operations, reinforcing its role as a strategic enabler of Indiaโs industrial growth. Commenting on the milestone, Vikas Choudaha, Business Head โ Storage Solutions, Godrej Enterprises Groupย stated,ย โAs we mark 25 years of our Chennai manufacturing facility, it reflects how we have steadily scaled our capabilities to support Indiaโs rapidly evolving logistics and warehousing ecosystem. As supply chains become faster and more complex, the need for intelligent, technology-led and future-ready infrastructure is intensifying, and at Godrej Enterprises Group, we are actively shaping this transformation through investments in advanced engineering, innovation, and automation-led capabilities.โ The company has strengthened its market position through automation-led manufacturing, precision engineering, and integrated digital design-to-delivery systems. Its portfolio includes automated racking solutions and rack-clad warehouses designed to maximise storage density, imp