Mumbai - Grade A warehousing demand is likely to grow at a compound rate of of 12.5 percent a year until FY30, with the retail and e-commerce sectors providing the impetus, according to an analysis by Alvarez & Marsal India, a global professional services firm.

The report estimated that over the next five years, retail, third-party logistics (3PL) and e-commerce will drive 80 percent of Grade A warehousing demand, with absorption seen at 410 million square feet (msf).

Currently, up to 70 percent of demand for Grade A warehousing