Warehousing supply to top 45 mn sq ft by 2026

Colliers India expects Grade A industrial and warehousing supply to reach 45 to 50 million sq ft by the end of 2026, according to a report published on 16 July. The consultancy tracked roughly 22 million sq ft of leasing in the first half of the year, up 12 percent from a year earlier. Fresh space is arriving faster than tenants are taking it.

Supply is racing ahead of demand

New completions rose 27 percent to about 25 million sq ft in the first half. Leasing grew slower, and the second quarter slipped 1 percent against the first. Vacancy sat at 17.2 percent. Delhi NCR and Chennai drove 45 percent of demand, while Delhi NCR and Mumbai absorbed 40 percent of the fresh supply. Vimal Nadar of Colliers pointed to a strong development pipeline and upbeat investor sentiment behind the build out. More parks are coming, not fewer.

Who is taking the space

Third party logistics took 30 percent of demand. Engineering firms took 21 percent and e-commerce 16 percent. Electronics occupiers nearly doubled their annual intake. The mix tells you where goods are moving. Manufacturing and rapid delivery both need modern racking, higher clearances and compliance grade fire safety. Older sheds no longer clear the bar. FMCG makers chasing tier 2 depth need that same standard to hold service levels through the festive season.

What an operator does with this

Lock rates now. A 17.2 percent vacancy gives tenants leverage that fades once festive stocking begins. Negotiate longer leases in Grade A parks near consumption clusters, not cheap land on a ring road. Model the working capital tied up in extra safety stock against the rent saved by a tighter footprint. The brands that win the next festive season are the ones that placed inventory closer to the buyer before the rush, not the ones scrambling for warehousing in September.