The Northern Corridor led the space take-up because of its preference by third-party logistics. (Representational Image)
HYDERABAD: With an increasing number of people shifting to online shopping, companies focused on providing third-party logistics have expanded their footprint in Hyderabad by leasing nearly seven lakh square feet space in the January-June period.
According to a report on industrial and logistics leasing by real estate consulting firm CBRE South Asia Pvt. Ltd, industrial and logistics players have leased 15 lakh square feet space in the January-June period.
"Among the industry segments in Hyderabad, third-party logistics firms drove leasing with a share of about 46 per cent, followed by e-commerce (21 per cent) and retail (nine per cent) firms," the report said.
Key leasing transactions recorded in Hyderabad during this period were Flipkart leasing 275,000 sq. ft. in an independent warehouse, TCI Supply Chain Solutions leasing 200,000 sq. ft in Indian Logistics Warehouse and Safexpress leasing 140,000 sq. ft in an independent warehouse.
The Northern Corridor led the space take-up because of the preference of third-party logistics.
The report also said that rental values increased on a half-yearly basis across all four corridors (Northern, Eastern, Western and Southern) in Hyderabad because of the sustained demand for investment-grade assets.
"Rents rose by about 23-25 per cent in the Northern Corridor and about 5-12 per cent across other micro-markets on a half-yearly basis in H1 2022," the report said.
The I&L sector leasing in India, however, registered a dip of about nine per cent (Y-o-Y) and stood at 12.8 million sq. ft. during the first half of the year. On a pan India basis, the space take-up was down by 17 per cent on a half-yearly basis compared to 1.5 crore square feet recorded in H2 2021.