Warehouse leasing in Lucknow on the rise: CBRE

economictimes.indiatimes.com:

Lucknow has witnessed approximately Rs 400 crore of investment by leading players like Amazon, Mondelez, Flipkart in the last five years, and an additional Rs 70 crore investment is expected in the development of warehouses in the city, according to a report by CBRE. Demand for quality warehousing space has consistently grown in Lucknow over the past 5 years and attained record levels in FY23. The total leasing in Lucknow region in 2022-23 stood at 0.18 mn.

sq. ft., an over 300% Y-o-Y increase in the last three years. Currently, the Lucknow region has a total of 5.2 mn.

sq. ft. of warehouse stock with approximately 1.4 mn.

sq. ft. of Grade A supply in the pipeline on the Lucknow-Kanpur highway cluster.

The capital city of Uttar Pradesh is one of the most important consumption markets in the state and is strategically located with seamless access to East, West, and Central India, emerging as one of the largest logistics hubs of Northern India. The increased warehousing demand has led giants like Amazon, Mondelez, Flipkart, Tata Croma, Airtel, DHL, Whirlpool, Delhivery, Ecom Express, and Mahindra Logistics to set up their warehousing facilities in the region. “Being the state capital, Lucknow has become an ideal location for the development of warehouses.

Demand for quality warehousing space has consistently grown in Lucknow over the past 5 years and attained record levels in FY23,” said Anshuman Magazine, Chairman & CEO — India, South-East Asia, Middle East & Africa, CBRE. Currently, a few developers, including Welspun, BG Link, Nanak Logistics, and Reciprocal, constitute the Grade A warehousing landscape in the Lucknow warehousing market. According to estimates, the sector has the potential to generate direct employment