Leasing of warehousing space at record 51.32 mn sqft in FY23

A record 51.32 million square feet of warehouse space were leased last fiscal year across eight locations, driven largely by the retail and third-party logistics industries.Industrial space for light manufacturing/assembling is included in the data for warehousing demand.The India Warehousing Market Report, which Knight Frank India released on Tuesday, revealed that rentals increased by 3–8% in seven out of eight cities.According to the data, the total area leased for warehousing increased to 5,13,24,207 square feet in the most recent fiscal year from 5,12,94,933 square feet in the fiscal years 2021–22.Leasing activity increased in Mumbai, Bengaluru, and Kolkata but decreased in NCR, Pune, Hyderabad, Chennai, and Ahmedabad across all cities.In the most recent fiscal year, leasing of warehouse space increased 10% to 9.5 million square feet. Last fiscal year, demand increased in Bengaluru by 25% to 7.4 million square feet and in Kolkata by 18% to 5.1 million square feet.In Delhi-NCR, the leasing of storage space decreased by 5% to 8.6 million square feet. Pune experienced a 2% reduction to 7.4 million square feet, and Hyderabad saw a 7% decline to 5.1 million square feet.