Leasing activity continued to witness strong growth during the first half of 2017, as close to 7.4 million sq. ft. was leased across cities.
The transaction activity grew by almost 50%,when compared to H2 2016, primarily driven by large sized space take-up from 3PL, engineering and manufacturing, Fast Moving Consumer Goods (FMCG) companies. Collectively, companies from these three sectors leased approximately 75% of the warehousing space during the review period.
Bangalore (25%), Delhi NCR (22%) and Chennai (19%) were the preferred micro-markets for companies from these sectors to lease space during the current review period.
The average size of space take-up increased from approximately 50,000 sq. ft. during H2 2016 to close to 65,000 sq. ft. during H1 2017. The number of large sized transactions (above 2,00,000 sq. ft.) also more than doubled, when compared to H2 2016.