Industrial Land Use is a piece of land for industrial purposes, eg. manufacturing, warehousing, processing or open storage. Industrial land is required in areas where pollution (like air & sound pollution) is likely to be high. Industries are normally placed away from urban residential areas. Normal FSI in industrial buildings 0.5 to 0.75 for single level structures

1. TOPIC-Industrial Real Estate
TABLE OF CONTENTS
● LAND
● WAREHOUSE
● FACTORY
● COLD STORAGE
● INDUSTRIAL PARKS
● FTWZ
● CFS
● ICD
● DRY PORT
● BONDED WAREHOUSE
● DISTRIBUTION CENTERS

2. What is Industrial Real Estate?
Land
Industrial Land Use is a piece of land for industrial purposes, eg. manufacturing, warehousing, processing or open
storage. Industrial land is required in areas where pollution (like air & sound pollution) is likely to be high. Industries
are normally placed away from urban residential areas. Normal FSI in industrial buildings 0.5 to 0.75 for single level
structures
Land Attributes to be considered while working on Industrial land
▪ Location (Village name)
▪ Google Coordinates
▪ Survey No
▪ Extent
▪ Zoning and conversion status
▪ Road width
▪ Frontage

3. ▪ Ownership Profile
▪ Price
▪ FSI achievable
▪ Cost / Sq. Ft on FSI
▪ Sketch
▪ Rental rate per sft in the area
▪ Any Gaps / Water bodies / Cemetery / Temple land/ HT Lines
Warehouse
A warehouse is a building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport
businesses, customs etc. They are usually large plain buildings in industrial parks on the outskirts of cities, towns or villages.
They usually have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and
unloading of goods directly from railways, airports, or seaports. They often have cranes and forklifts for moving goods which are
usually placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials,
spare parts, components or finished goods associated with agriculture, manufacturing and production. In India, a warehouse is also
referred to as a godown.

4. Factory
A factory, manufacturing plant or a production plant is an industrial site, usually consisting of buildings and machinery, or
more commonly a complex having several buildings, where workers manufacture goods or operate machines processing one
product into another.
Most modern factories have large warehouses or warehouse-like facilities that contain heavy equipment used for assembly
line production. Large factories tend to be located with access to multiple modes of transportation, with some having rail,
highway and water loading and unloading facilities.
Cold Storage
Cold storage is basically a term used for temperature controlled storage that included chiller and frozen storage facilities,
usually used to store food, Pharma products, chemicals or pharmaceuticals. "Cold storage" could be something as small as a
walk-in cooler or freezer or a large facility with bulk or palettized storage in chambers
Industrial Parks
An industrial park (also known as industrial estate, trading estate) is an area zoned and planned for the purpose of industrial
development. An industrial park can be thought of as a more "heavyweight" version of a business park or office park, which
has offices and light industry, rather than heavy industry. It includes warehouses and storage spaces and hybrid buildings

5. FTWZ
The Free Trade and Warehousing Zones (FTWZ) is a special category of Special Economic Zone and is governed by the
provisions of the SEZ Act and the Rules. FTWZ is designated as a deemed foreign territory and are envisaged to be
integrated zones and to be used as International Trading Hubs. These places are custom bonded
CFS
A container freight station is a facility where freight shipments are consolidated or de-consolidated and staged between
transport legs. A CFS is typically located in proximity to an ocean, port, or airport where cargo containers are transported to
and from.
ICD
ICD means Inland Container Depot situated at inland points away from sea ports. ICD is a term used in India in the field of
Imports and Export of sea shipments. ICD is formed to help importers and exporters to handle their shipments near their
place of location
Dry port
A dry port (sometimes inland port) is an inland intermodal terminal directly connected by road or rail to a seaport and
operating as a centre for the transshipment of sea cargo to inland destinations.

6. Cold Storage
Cold storage is basically a term used for refrigerated or frozen storage facilities, usually used to store food or pharmaceuticals.
"Cold storage" could be something as small as a walk-in cooler or freezer.
Bonded Warehouse
These warehouses are owned, managed and controlled by government as well as private agencies. Bonded warehouses are
storage facility used to store imported goods for which import duty is still to be paid. The bonded warehouses run by private
agencies have to obtain license from the government.
Distribution Centres
This type of storage facility usually has large space, which enables fast movement of large quantities of stores for short period.
While on the other hand, conventional warehouses hold goods for long time, say 6 months or 1 year. These warehouses
basically by nature, serve as points in the distribution system at which goods are procured from different suppliers and quickly
transferred to various customers. These centers provide computerized control, which make movement of goods quick, fast and
reliable. In order to minimize delivery time, these storage facilities are found close to transportation centers. In some cases,
distribution centers handle the goods for less than a day period such as in case of fast foods or perishable products. Most of
the goods enter in the early morning (dawn time) and are transferred/distributed by the evening time. E-tailing is the demand
driver for industrial real estate.

7. Challenges for Realtors in closing transactions in Industrial Real estate
• Large Spaces are not available in the market. With growth in E-commerce and mass manufacturing Realtors find it
tough to match demand with supply
• Availability of “A” Grade Space–There is a storage of Grade A space across India as current needs require height for
vertical stacking, more loading bays and areas to enable faster despatched and many more such technical points.
Specifications will be explained in the next article by me.
• Approvals – older warehouses do not have the right kind of approvals, today and current tenants demand a fully
approved warehouse space
• Fire NOC – apart from extinguishers, fire hydrants and sprinkler systems have become mandatory to obtain NoCs.
Most older buildings do not have the space or provisions for the same
• Dangerous goods and chemical storage facilities – many material require specialized storage with safety precautions
and these have not been provided for.
• Clients Budget vs Location – clients are looking for enhanced specifications at market rates for older Warehouses in
locations closer to the city, which cannot be matched

8. • STP & ETP – sewerage treatment plants and effluent treatment plants are required for pollution NoCs and the guidelines
are being implemented now stronger than ever before
• Slow Decision – multiple approvals from tenants at multiple levels make the process slow apart from varying client needs
and a non buoyant economy
• Generating genuine enquiries – most enquiries in the industrial space are for data collection and to access market rentals
and renegotiate with existing landlords rather than to find a newer space
• Competition working for “0%” Brokerage – many large corporate Realtors have adopted a strategy of not charging the
tenant a fee only to obtain an exclusive mandate and they use the mandate of a good profile client to extract a larger fee
from the landlord
With this I have covered the basics of industrial Real estate without touching up on the potential for brokers as the potential in
this sunrise sector is well known and can be a separate article by itself
The author Amit Damodar MRICS is a member of the Royal Institute of Chartered Surveyors with over 15 years of experience in the
Real estate sector with proven capabilities in Land acquisition and Industrial leasing under the brands of Chattels Realty and
AllWarehouses.in. He runs a full service consulting firm in Chennai with a large team and services clients PAN India through tie up

9. Thank you