Industry

Demand for city warehouses to rise as delivery targets quicken

Representational image.

Representational image.   | Photo Credit: K.V.S. Giri

Demand for small warehouses within city limits is expected to rise over the next one year as e-commerce firms are targeting to ensure same-day deliveries of food and groceries to customers, according to a report.

The demand is likely to be for warehousing of 5,000-10,000 sq ft size, property consultant Colliers International said. “E-commerce companies are focussing on same-day delivery with the pandemic-influenced lockdowns placing greater dependency on e-commerce for food and grocery items,” the firm said.

The consultant said e-commerce companies are now trying to stock a larger proportion of inventory closer to their customers’ locations for efficiency and to improve the quality of products upon delivery.

“Over the next 12 months, we believe in-city warehouses will gain traction, to be used as small distribution hubs. We expect occupiers to scout for in-city warehousing space in the range of 5,000-10,000 sq.ft. in major demand hubs such as Mumbai, Bengaluru and Chennai and NCR,” the consultant said. Even the older and lesser utilised ground-level office spaces and service centres are being considered to set up small warehouses. Anarock chairman Anuj Puri said e-commerce was flourishing in India even before COVID-19, and lockdowns and closure of malls had accelerated this growth.

“In terms of new trends, multi-level warehouses within city limits could see higher demand,” Mr. Puri said.

Currently, warehouses in top Indian cities are largely restricted to the peripheries, quite far away from a larger customer base. In-city warehouses will help companies to minimise transportation costs and execute faster delivery timelines, Mr. Puri added.

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Sep 19, 2020 8:45:27 PM | https://www.thehindu.com/business/Industry/demand-for-city-warehouses-to-rise-as-delivery-targets-quicken/article32306611.ece

Next Story