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.

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Printable version | Sep 19, 2020 8:45:27 PM |

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