70% of APAC logistics occupiers want supplier base up in India: CBRE

Over 30 per cent of the respondents said they want to outsource more of their supply chain operation to their-party logistics (3PL) players.

Eighty-two per cent of the India-based respondents said they expect their business performance to improve over the next 24 months, the CBRE 2025 APAC Logistics Occupier Survey, conducted between March and April 2025, revealed.

Fifty-five per cent of respondents identified cost escalation as the primary challenge their businesses anticipate facing over the next two years, while 81 per cent of respondents indicated their intention to increase the size of their warehousing portfolio over the next two years.

Market competition is a major challenge for over 45 per cent of respondents.

Reverse logistics in India often contends with elevated costs, primarily due to fragmented supply chains, inefficient return processes and limited technology adoption.

CBRE Research and Optoro estimate that reverse logistics transportation alone accounts for 10-16 per cent of return processing costs. Eighty-three per cent of respondents identified reverse logistics as their primary concern.

Last-mile logistics and real estate land prices were also identified as areas of concern by 82 per cent and 81 per cent of respondents respectively. Last-mile logistics, which constitutes over half of the total logistics costs, faces significant challenges like expensive fuel and labour, urban congestion and inadequate infrastructure.

ALCHEMPro News Desk (DS)