3PL Players Drive Logistics Leasing
WAREHOUSING & LOGISTICS

3PL Players Drive Logistics Leasing

Third-party logistics (3PL) providers continued to dominate the industrial and logistics leasing market in the first half of 2024, reflecting their critical role in managing supply chain complexities for various industries. According to a report, the robust leasing activity was driven by the increasing need for efficient warehousing and distribution networks, especially amid the ongoing growth of e-commerce and the demand for streamlined supply chain operations.

3PL players accounted for the majority of leasing transactions during this period, focusing on strategic locations near major transportation hubs, highways, and urban centers. These logistics service providers are expanding their footprints in key markets, including major cities and emerging industrial corridors, to meet the growing demand for quick and reliable delivery services.

The report highlighted that the demand for industrial and logistics spaces is particularly strong in Tier-I cities, where e-commerce, retail, and FMCG companies are ramping up their operations. Additionally, Tier-II cities are witnessing increased interest due to their potential for future growth, lower costs, and improved infrastructure.

This leasing momentum is not only limited to traditional warehousing but also includes specialized facilities such as cold storage, last-mile delivery hubs, and cross-docking terminals, reflecting the evolving needs of modern supply chains. The rise of omni-channel retailing has further driven the need for flexible and scalable logistics spaces that can adapt to varying business models.

Logistics parks are emerging as preferred destinations for 3PL providers, offering state-of-the-art facilities, scalability options, and easy access to transportation networks. Developers and investors are responding to this demand by launching new projects and expanding existing logistics parks to accommodate the needs of 3PL companies.

The outlook for the logistics sector remains positive, with continued expansion anticipated in the second half of 2024. As 3PL players increasingly focus on technology integration, automation, and sustainability, the demand for high-quality, strategically located industrial spaces is expected to rise further, solidifying the role of 3PL providers as key drivers of the logistics real estate market.

Third-party logistics (3PL) providers continued to dominate the industrial and logistics leasing market in the first half of 2024, reflecting their critical role in managing supply chain complexities for various industries. According to a report, the robust leasing activity was driven by the increasing need for efficient warehousing and distribution networks, especially amid the ongoing growth of e-commerce and the demand for streamlined supply chain operations. 3PL players accounted for the majority of leasing transactions during this period, focusing on strategic locations near major transportation hubs, highways, and urban centers. These logistics service providers are expanding their footprints in key markets, including major cities and emerging industrial corridors, to meet the growing demand for quick and reliable delivery services. The report highlighted that the demand for industrial and logistics spaces is particularly strong in Tier-I cities, where e-commerce, retail, and FMCG companies are ramping up their operations. Additionally, Tier-II cities are witnessing increased interest due to their potential for future growth, lower costs, and improved infrastructure. This leasing momentum is not only limited to traditional warehousing but also includes specialized facilities such as cold storage, last-mile delivery hubs, and cross-docking terminals, reflecting the evolving needs of modern supply chains. The rise of omni-channel retailing has further driven the need for flexible and scalable logistics spaces that can adapt to varying business models. Logistics parks are emerging as preferred destinations for 3PL providers, offering state-of-the-art facilities, scalability options, and easy access to transportation networks. Developers and investors are responding to this demand by launching new projects and expanding existing logistics parks to accommodate the needs of 3PL companies. The outlook for the logistics sector remains positive, with continued expansion anticipated in the second half of 2024. As 3PL players increasingly focus on technology integration, automation, and sustainability, the demand for high-quality, strategically located industrial spaces is expected to rise further, solidifying the role of 3PL providers as key drivers of the logistics real estate market.

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?