Kolkata records warehouse leasing volume of more than 1 million sqft

Kolkata: In the industry sector, Kolkata recorded warehouse leasing volume of over one million sqft in the first half (H1) of 2024 with a growth of 20 per cent over second half (H2) of 2023. Third party logistics (3PL) firms were the chief contributors in terms of lease volume followed by the e-commerce and retail sectors.

According to a report by the global real estate services firm, Cushman & Wakefield, the 3PL firms had a share of around 44 per cent. E-commerce and retail sectors followed with shares of 18 per cent and 17 per cent respectively in half-yearly leasing activity.

The report revealed that the warehousing sector is likely to get further support going ahead from the state government’s focus on development of multi-modal logistics parks and streamlining of regulations, including single window mechanism for approvals and clearances.

Statistics showed that the NH16 submarket dominated leasing activity in H1 with a share of 62 per cent in half-yearly lease volumes. Within NH16, Amta-Ranihati Road recorded major transactions by 3PL, retail and e-commerce firms. The NH19 and Old Delhi Road each contributed 19 per cent to lease volumes. Within NH19, Singur and Dankuni, a prime-warehousing corridor in the city, witnessed transactions by prominent 3PL firms.

Kolkata recorded a new warehousing supply of around 0.6 msf at NH19 and Old Delhi Road in H1. Moreover, built-to-suit (BTS) facilities are under development across both NH16 and NH19 micromarkets.

The report claimed that developers are looking to enhance supply at NH19, which is witnessing high demand amidst declining vacancies over the past few quarters. On the other hand, completions are moving ahead at Old Delhi Road as well where transaction activity has been quite strong. “City-wide headline warehouse rentals recorded a growth of 4-5 per cent yoy in H1 while land rates moved up by 10-12 per cent on an annual basis,” the report said.

However, Kolkata did not record any industrial lease transaction in H1. City-wide headline industrial rentals increased by 3-4 per cent yoy in H1 and there was a 5-7 per cent yoy growth in land rates.