Amazon leases 9 lakh sq ft warehousing space in Gurugram
NEW DELHI: Logistics real estate platform ESR recently leased 9 lakh square feet of warehousing space to Amazon India at the e-tailer’s upcoming 74-acre facility in Sohna, Gurgaon. This thing is revealed by the two people with direct knowledge of the deal. ESR had acquired in January 76.84 acres to construct a logistics park with 2.5 million sq ft of warehousing space in Gurugram.
Another anonymous person said that “The facility will be ready by early next year and most of the pre-leasing has been done. ESR is also in talks with other e-commerce players to lease the remaining space”. However, ESR declined to comment on this deal.
Warehouses in the National Capital Region (NCR) have seen 13.9% vacancy levels in comparison to other markets such as Bengaluru and Pune. These markets have vacancy levels of 29.7% and 21.8% respectively.
Amazon India spokesperson said “At Amazon, we are committed to investing in India for the long term. Our vast and advanced infrastructure of nine fulfillment centers, with a storage capacity of 5.5 million cubic feet in the NCR region, helps offer a convenient and safe shopping experience to customers in the region and across the country”.
ESR had bought the land from the Mayar Group.
28% of the warehousing space was leased by e-commerce firms in 2019-20, followed by the manufacturing sector (24%).
During the Covid-19 push, the e-commerce sector is set to gain a larger share in consumption because of the shift in buying behavior. It is likely to boost demand for warehousing in the future.
Walmart-owned Flipkart 140 acres of land in Manesar in Gurgaon to set up its largest fulfillment center in Asia in a transaction concluded after the easing of lockdown restrictions.
Gurgaon has become a preferred place for warehouse developers.
According to a Knight Frank India report committed land for warehouses across the country is estimated at 21,163 acres. This land has the potential of adding 63% more supply to the existing 307 million sq ft of warehousing stock.
