E-commerce growth has led to huge demand for Grade A warehouses

 This exponential growth has spurred robust demand for Grade A warehouses across the country. India is in a structural sweet spot with respect to warehousing, with industrial and consumption led demand outstripping the supply addition in most key markets across the country. Multinational tenants (across industrial categories, E-commerce players and 3PL Logistics companies) are increasingly gravitating towards larger, higher-quality warehouses. While 7 in 10 online shoppers reside in Tier 2+ cities, only ~28% of the warehousing stock is in Tier II cities, which is driving demand for Grade A warehousing assets in cities like Jaipur, Lucknow, Kolkata, Nagpur and Ludhiana. Between 2017-2022, institutional players have invested close to ~$10 bn towards building Grade A warehousing assets.

Property Share – India’s first and largest commercial real estate investment platform, recently unveiled its latest real estate investment opportunity — a prime distribution centre leased to a leading e-commerce company, a subsidiary of the largest retailer in the world. This rare investment opportunity offers retail investors a chance to invest in a brand-new built-to-suit Grade A+ warehousing facility. This opportunity marks Property Share’s first foray into the Indian warehousing space, having already invested ~£20 mn across 3 warehousing assets in the UK.

The investment opportunity is a direct play on the logistics and warehousing market which is one of the fastest growing segments within real estate on the back of rising e-commerce and online shopping post the pandemic.

Building classification is a complex affair. Agility Logistics brings out this complexity in brief. “Unfortunately, building classification isn’t always consistent from market to market, and confusing language sometimes arises. Commercial real estate agents use the Class A designation on a variety of facilities, such as office space, light industrial space, distribution centers, and even warehouse space” Location of the property is very significant; it is said that location is everything in real estate is particularly true with warehouses. Class A warehouses are located at the confluence of airports, railways, ports, and highways for quick access to major domestic and export markets. In general , today, all businesses, big or small , are concerned with warehouses.