Big or small, warehousing decisions are essential for all kinds of businesses. Not everyone can set up a company-owned warehouse. There are always, however, investment opportunities in warehouses in industrial parks. The Covid-19 pandemic highlighted the importance of adequate warehousing and its effect on supply chain management. Real estate experts say warehouses and distribution centres will be the next big thing for anyone who wants to strike the iron. Warehouse investment in India is more profitable than other forms of commercial real estate. Warehouses offer some unique advantages other than appreciating in value over time due to internal and external causes.
The Indian warehousing market is desirable for domestic and international investors. In 2017 it attracted Rs. 25000 above and was expected to reach Rs. 50000 by 2021. In the e-commerce industry, people rely on digital platforms to fulfil their needs, which have increased during the pandemic, and the demands for goods have been at an all-time high. To keep up with this new trend, companies and industrial parks have started leasing out warehouse investment properties closer to cities to help e-commerce and even small businesses cater to a larger segment of the population without sacrificing turnaround time.
A large number of industrial parks in India offer warehousing solutions that meet the needs of businesses. Each tenant or buyer of a warehouse property has preferences regarding location, direction, and distance from the city and surroundings. Warehouses in industrial parks have their advantages, essential for project efficiency.
Warehouses do not require much hassle to be construct. If companies built their warehouses, they would be built very quickly. However, getting all the necessary permits, utilities and location next to highway exits should be arrange for and agree upon. This can add to the time and cost of constructing a warehouse. However, in warehouses located in industrial parks, the whole process takes much less time as all the utilities and requirements are connected to the industrial park’s location and are prepared in advance for development. The permits are already granted, making the process much more manageable.
Better Accessibility of Infrastructure and Workforce
Setting up a warehouse facility requires careful considerations and detailed analysis of the surrounding area for transport, accessibility, infrastructure, and workforce availability. However, placing a warehouse in an industrial park simplifies this as the developer already has data on these items. Some industrial parks also have lodging and transport facilities for employees. The recruitment process is also simplified as existing parks form a community of workers and employers around them, which guarantees their visibility as an attractive place of work.
Easy Administration and Operation
Building a warehouse requires millions in initial investment, though that is not the end. The most basic everyday issues are often overlook, such as cleaning services, security, catering etc. These issues are already work out in industrial parks and thus do not require additional labour from the tenant or buyer. The territory is always secure, and companies are contract for cleaning, waste removal and catering etc. Companies can also hire their own services that their specific areas may need.
Building a freestanding warehouse doesn’t guarantee that your client suppliers and customers will build their facilities on neighbouring sites. Not everyone requires large units, and neither is everyone looking to buy them. The neighbouring plot may also be problematic in terms of landscape or permits. One can avoid all these risks by investing in a warehouse in an industrial park. Speculative housing often exists or can be built on the same land. Which makes it easier for satellite operator companies to rent or lease smaller units, which eventually is beneficial for the developer and the tenant companies as the proximity simplifies logistics and enhances the interaction between companies.
The level of interest in warehouse real estate is high at the moment. Freestanding warehouses are pretty common, but the warehouses that acquired the most funding are located inside the industrial park. This makes sense from an investor’s point of view as custom-built warehouses are easier to adapt for speculative leasing in an industrial park than outside. The reasons for this assumption are the same- management Synergy and infrastructure. Many players in the market would instead rent than have their own warehouses. In certain situations, a developer may have surplus space for some time. If they are located in an industrial park, they find tenants for occupying that space more quickly than when they are freestanding. Thus, the residence status gives certain freedom of action that adapts to changes in company strategy or requirements space after a certain period.
In conclusion, as the Indian market is guide by western experience despite a saturate market, high quality commercial real estate continues to grow actively. In the Indian market, demand for warehouses and industrial parks is increasing exponentially, making it easier for businesses and retailers to find storage and logistic solutions. One can confidently say that this is not a short term trend, and it is only going to go upwards in the future, making warehouse investment in India a lucrative option.