CBRE report resurfaces: 70% of APAC occupiers plan to expand India warehousing within two years
Resurfacing a July 2025 CBRE finding, India's warehouse demand is set to strengthen as nearly 70% of APAC occupiers and more than 80% of India-based occupiers plan expansion within two years, CBRE said. E-commerce, 3PL, FMCG and manufacturing demand were expected to drive activity beyond major metros.
What happened
CBRE reports strong Indian warehousing demand, with APAC and India-based occupiers planning portfolio expansion. Growth is supported by 3PL, e-commerce, FMCG
Key facts
- Nearly 70% of APAC occupiers plan to expand warehousing footprint in India over the next two years
- More than 80% of India-based occupiers plan warehouse expansion over the next two years
- Nearly 90% of India-based respondents intend to expand logistics footprint over the next two to five years
Why this matters
Prioritize partnerships or acquisitions in regional warehousing, fulfillment and logistics platforms to capture India’s accelerating non-metro supply-chain buildout.
What to watch
- Quarterly Grade A warehouse absorption, pre-commitment rates and net effective rent growth in major and tier-II markets.
- New leasing announcements from e-commerce, 3PL, FMCG, electronics, auto and consumer-durables companies.
- Completion timelines for expressways, freight corridors, ports, rail terminals and multimodal logistics parks.
- Land acquisition activity, warehouse project launches and vacancy-rate changes around emerging logistics nodes.
- Interest rates, industrial credit availability, consumption growth and freight-volume trends.
- Adoption of GST-linked network consolidation versus localized quick-commerce and same/next-day delivery expansion.
- Developers and REITs increase land banking and speculative Grade A warehouse construction near tier-II city ring roads, industrial corridors and expressways.
- 3PL providers expand multi-client facilities, cold-chain capacity and value-added services such as packaging, returns processing and inventory management.
- Retailers and e-commerce platforms shift toward distributed inventory placement, increasing demand for warehouse-management systems, automation and last-mile partnerships.
- Warehouse rents and land values rise fastest in supply-constrained micro-markets with strong highway, rail, port or airport connectivity.
- State governments intensify logistics-policy incentives and infrastructure investments to capture new warehouse clusters.