New supply of Industrial & Logistics (I&L) space in Chennai bounced back strongly in the first half of 2024 with 3.4 million sq ft (MSF) - the highest among all cities. Chennai will be one of the primary contributors of I&L supply in H2 2024, said Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE.
Chennai topped the list in the first half of 2023 but lost to Mumbai in the second half. However, in the first half of this year, the city bounced back helped by strong demand from engineering and manufacturing players.
Key locations for I&L includes Sriperumbudur, Oragadam, Mannur, Red Hills, Angadu, Koduvalli and Kannigaipair, Mevalurkuppam, Gummidipoondi and Ponneri, Paiyanur, Maraimalai Nagar, he told businessline.
Magazine said Chennai’s I&L landscape is evolving due to rising demand from multiple sectors, with engineering and manufacturing players dominating the sectoral shares. Due to Chennai’s rising prominence as an important manufacturing hub and the development of several industrial parks across the northern and western corridors, developers and investors are keen on exploring the region to build new warehousing portfolios. This is reflected in the supply, which has increased significantly over the past few years.
Chennai recorded the highest pan-India supply of 3.4 MSF in H1 2024, which was around 1.4 MSF in H1 2019. Over the last two years, the supply has increased by more than 2X. This stands as a testament to the fact that Chennai has all the reasons to shine bright. Looking ahead, it is likely that sectoral leasing will pick up pace in the second half of 2024 as consumer demand will surge during the upcoming festive season. Current momentum indicates that Chennai will be a primary contributor to I&L supply in H2 2024, said Magazine.
A CBRE release cites some key transactions recorded in the first half: Butterfly leasing 250,000 sq. ft. in NDR Industrial & Logistics Park, Crompton Greaves leasing 200,000 sq. ft. in NDR Industrial & Logistics Park, and Silueta leasing 100,000 sq. ft. in Greenbase Industrial & Logistics Park, says a CBRE release.
One of the major deals was CapitaLand India Trust (CLINT) signing a forward purchase agreement with Casa Grande Group to acquire three industrial facilities with a total net leasable area of 0.79 million sq ft at OneHub Chennai, India, for $32 million.