A built-to-suit warehouse is a type of warehouse wherein there is an agreement between the lessor (developer) and the lessee (client) and the warehouse space is customized according to the client’s requirements by the developer.
The developer shares all the design and construction requirements at the outset, which when agreed upon, the actual warehouse construction commences.
Customised design as per client’s needs is brought to life using resources and expertise of developers.
This allows for the dynamism and flexibility that businesses require to handle contemporary logistical challenges and bottlenecks, with the advent of e-commerce logistics and booming warehousing market in India.
A smart warehouse is one where all gadgets and devices are connected via the Internet (Internet of Things). There is the widespread use of automation and robotics in such facilities.
The average trending size for warehouse development in metros is increasing from 1-1.5 lakh sq ft to 3-5 lakh sq ft.
In non-metro markets, it is between 50,000 sq ft and 75,000 sq ft. The ease with which it allows the option of flexibility and customization as per the business needs results into value for money.
Compared to other assets the turnaround time here is fast (9-12 Months). Tenants are increasingly looking for expansion options within these parks.