Market View India Logistic

The warehousing and logistics industry continued to

witness an increase in market activity during the first half

of year 2012. The demand for logistic and warehousing

spaces was not only limited to leading cities such as

NCR (National Capital Region), Mumbai and

Bangalore, but was also spread across leading tier II

cities as well.

A popular trend witnessed during this review period has

been consolidation of multiple facilities into a more

efficient asset with better quality & modern amenities.

Most of the third party logistics (3PLs) companies are

also in the process of merging smaller warehouses into

big modern qualitative assets to showcase their

capabilities to gain more business.

Private Equity Funds have gradually consolidated their

land banks and moved some of their old assets up the

value chain by developing warehouses by tying up with

local partners.

A large numbers of domestic developers are moving up

the value chain by taking initiatives to provide modern

logistics parks with quality warehouse facilities. They are

also building assets with better specifications and

support infrastructure. They are encashing their old but

strategically located land banks to deliver solutions for

various specialized requirements such as service parts storage, in city retail distribution, repair and return etc.

Rental values increased by 3-7% across most micro

markets, due to an increase in demand for warehousing

and logistics facilities. The coming months are likely to

witness additional supplies across cities, which will

positively impact transaction activity in these locations.