Calcutta and its adjoining areas absorbed 3 million square feet of warehouse space in 2023, down by 21 per cent from the year before even as supply more than doubled to 5.8 million square feet.
A research report prepared by consultancy firm CBRE pointed out that third party logistics (3PL) companies were the biggest occupiers of logistic space in Calcutta and its adjoining areas, followed by retail companies and electronic and electric materials manufacturers.
Share of the 3PL firms was 30 per cent in Calcutta leasing activities, while retail and electronics/ electrical were 23 per cent and 13 per cent respectively. National Highway 6, which connects the metropolis with Mumbai, was the leasing hotspot according to the report.
CBRE listed three large transactions that took place during the year viz. retail firm Spencer’s taking up 120,000 square feet space in NDR Industrial and Logistic Park, Cabcon and Polar Electricals leasing 100,000 square feet and 85,000 square feet respectively in Sankrail Industrial & Logistics Park.
While absorption in Calcutta could not keep pace witnessed in 2022, the industrial and logistic sector on a pan-India basis recorded an all-time high leasing activity in 2023, achieving an 8 per cent growth. Total leasing in 2023 stood at 38.8 million square feet across eight cities and supply was 36 million square feet, again a historic peak.
CBRE noted a drift towards more structured operational models of industries such as retail, FMCG, and manufacturing driving an increased demand for efficient last-mile delivery solutions. The majority of space uptake in 2023 was characterised by small-sized deals (under 50,000 square feet).
Anshuman Magazine, chairman & CEO, India, southeast asia, Middle East & Africa, CBRE, said the numbers indicate the sector's resilience despite global economic challenges. “The leasing landscape in 2023 reflects a pronounced influence of 3PL players, commanding a substantial 45 per cent share,” Magazine added.
Ram Chandnani, managing director, advisory & transaction Services, CBRE India, noted the significant involvement of domestic occupiers, underscoring the strategic importance of local players in shaping the future of leasing dynamics.
“The strategic alignment with 3PL firms signifies a collective pursuit among occupiers to address storage needs, enhance flexibility, curtail costs, and mitigate challenges tied to labour sourcing,” Chandnani pointed out.
