Mumbai | October 9: Institutional leasing of Grade-A industrial logistics parks and warehousing space in India’s tier-2 cities climbed 18% year-on-year, according to the latest commercial real estate advisory quarterly reports. Cities adjacent to major industrial corridors, including Nashik, Nagpur, and Coimbatore, have emerged as primary beneficiaries.

Logistics Companies Expand Footprint Third-party logistics operators and FMCG retail giants accounted for the majority of new leasing commitments. Companies cite competitive land values, improved multimodal road expressways, and abundant regional workforce availability as key factors driving warehousing decentralized expansions outside congested tier-1 metropolitan limits.

Institutional Capital Allocations Global private equity real estate funds continue to deploy capital into dedicated logistics park platforms. Property analysts expect demand for temperature-controlled storage and automated fulfillment centers to sustain robust absorption rates across regional economic corridors through 2027.

Source: National Real Estate Developers Council (NAREDCO) Report