Grade A warehouses: The most-sought-after asset with the highest net absorption rate in 2022

Grade A warehouses: The most-sought-after asset with the highest net absorption rate in 2022

The industrial and logistics sector in India is currently undergoing a rapid transformation. In the last few years, we have seen a rise in the number of Grade A warehouses being developed across the country. What are Grade A warehouses? Why are they becoming so popular? And what does this trend mean for the future of industrial real estate in India? Let us navigate a warehousing company in India adapting Grade A infrastructure.

Grade A warehouses- an overview

Grade A warehouses enhance warehousing operations and optimize storing spaces. A Warehouse company in India offering Grade A quality follow these standard features including–

  • 11m of minimum height at the eave
  • 1:1.5-1:3 building aspect ratio
  • 1 in 10000 SF on plinth area or lesser for docking facilities
  • FM2 industrial warehouse flooring with a minimum floor load (UDL) of 5T/SQM.
  • A minimum 25.5 m apron length in concrete
  • Should support at least 40 FT containers. 
  • Blacktop and concrete internal roads with correct dimensions for easy transit of heavy carriers. 
  • Sustainable and energy-efficient features. Safety measures like firefighting systems, CCTV, boom barriers and more. 

These specifications are proven to have streamlined the back-end operations and the supply chain. 

Functions of grade A warehouses

There are several key functions that Grade A warehouses perform which make them such an integral part of the industrial real estate market.

  • Grade A warehouse provides an optimal space solution for businesses with high-value inventory. By keeping inventory in a central and secure location, businesses can easily track and manage their stock, while also reducing the risk of theft or damage.
  • Another key function of Grade A warehouses is that they offer businesses spaces to facilitate efficient operations of the supply chain.  These warehouses are typically much larger than traditional storage units, and offer tangible benefits like additional floor load capacity and more efficient material handling space. 
  • Additionally, Grade A warehouses often come equipped with modern amenities and features that can improve efficiency and productivity, such as climate control and security systems.

Finally, Grade A warehouses can serve as a launching point for businesses. By having a presence in a major industrial hub such as Chennai, businesses can gain access to new customer bases and markets that they might not otherwise have had exposure to. 

How is India adapting new-age warehouses

Artificial intelligence is becoming more prevalent by the day. The digital transformation of warehouses is dependent on automation. The connection between technology and people, enabled by wearables, is an important aspect of a modern warehouse. Imaging, cloud integration, voice/face recognition, and personal assistants all provide enormous benefits. The benefit of such technology is that it provides real-time information regardless of the environment or location.

Hiranandani Industrial Parks offers a progressive infrastructure with Grade-A warehouses that can be customized as per business needs. These built-to-suit spaces adhere to the aforementioned standards. 

  • You can optimize your logistics costs due to the speed, safety, and convenience. 
  • These warehouses have optimum floor plates with provision for further customisations which will help you scale as your business expands. 
  • Owing to 60 acres of vast land extent and 12.5 lakh sq.ft of total leasable area, large-scale companies can even avail the largest warehouse in India on a long-term lease.

Demand for industrial warehousing services in India 

India has seen a consistent rise in demand for industrial warehousing services over the past few years. This is due to the country’s growing economy catapulted by the ‘Make in India’ initiative with lucrative reforms like tax benefits for FDI investment, GST, and state policies. 

Chennai is one such location that experienced a phenomenal industrial rise with the proposed trade corridors. Warehouse companies in Chennai have leveraged multi-modal transport like seaports, airports and railways for an efficient supply chain. Hiranandani Industrial Parks, Red Hills, Chennai enjoys a strategic location with major industrial hubs, road infra, and essential facilities accessible at a convenient distance. 

India’s Grade-A warehousing sector is projected for a 15% rise by 2025. By this period, this sector will clock in a revenue of over $2.8 Billion. (Source: CREDAI Anarock).

This will result in an increase in the absorption of industrial warehouse space. The year 2022 has already recorded a peak net absorption rate of up to 42.5 million sq.ft, with a 17% rise since 2019. (Source: Financial Express)

The main drivers of this growth are e-commerce, 3PL, and manufacturing, which are expected to see a significant increase in their consumption of warehouse space. 

Conclusion

Grade A warehouses are set to become the next big thing in industrial real estate. With more businesses looking to increase their storage and distribution capabilities, the demand for these types of warehouses is expected to rise sharply in the coming years. Market experts predict that grade A warehouse absorption will reach an all-time high in 2022, making now a great time to invest in this growing market segment.

Kickstart your business with a reliable foundation of Hiranandani Industrial Parks— offering a warehouse for sale in Chennai of Grade A quality and built-to-suit provisions. 

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