As city skylines grow taller, industrial areas expand, and prime locations get increasingly costly, businesses are having to choose between paying higher for a great warehouse location or settle for a cheaper spot far away from their audience. This is where multi-client or shared warehousing steps in, reshaping the way businesses approach their storage needs. This model allows multiple companies to share a single facility, controlling costs while maintaining access to prime locations.
The multi-client warehousing market trajectory reflects a promising compound annual growth rate (CAGR) of 9.43% from 2024 to 2031. As land prices continue to soar, third-party logistics (3PL) providers offering multi-client warehouses are becoming the smart choice for companies looking to stay competitive and efficient without breaking the bank.
The rise in land prices
In major metropolitan areas and key logistics hubs, land prices have skyrocketed, with some regions reporting up to 50% price appreciation in the past two years. The primary drivers for the surge in land prices are urbanization, population growth and e-commerce boom, intensifying the demand for strategically located distribution centers in India. This rise has placed immense pressure on businesses, forcing them to reconsider their traditional warehousing strategies and partner with tech-enabled and strategically-located warehousing companies.