Industrial rental property takes a substantial chunk of the commercial rental segment in India. Owing to their intensive nature, these leased out industrial properties usually serve as long term agreements between owner and tenant.

In most cases they are plots of land leased out to be developed as industrial structures or industrial projects which due to the owner's incompatibility to run the industry are being leased out to any other company.

Industrial rentals are considered profitable for the tenants who rent them as readymade properties with all the government sanctions being cleared, as required for obtaining industrial land in various cities like Gurgaon, Delhi, Mumbai and Hyderabad.

Industrial rentals also involve the transaction of huge finances as in the case of large plots of land, factories or other industrial buildings.

As most of today's industrial companies are operating from a global perspective and, in turn, dealing with increasing import and export demands, industry consolidations and potential technological advances are at par with international standards.

Current Scenario

In the industrial rental arena, the buzz is significant in cities like Noida, Delhi, Mumbai, Chennai, Kanpur and Hyderabad. Industrial rentals involve huge financial transactions. The rental rates for industrial buildings and structures reflecting superior and cost effectiveness are shooting up.

Also driving it are the business needs of the industrial companies that operate to global standards of excellence

Developments in the real estate sector are being influenced by the developments in the retail, industries, economic services and many others. About 250 ancillary industries such as cement, steel, brick, timber, building materials etc. are dependent on the real estate industry.

All variety of industrial properties is available nowadays. There is a premium for industrial space or setting up an industrial facility. All industrial units in the new industrial area in Chandigarh will also focus on allied services like ancillary units and low-end manufacturing, besides trading.

There will also be an inbuilt housing accommodation for labor employed in the units.

Several estates and areas which have government sanction provide well laid out land plots of different sizes with basic infrastructure like factory sheds, all season roads, sewerage and drainage, electricity, water, telecommunication, weigh bridge etc.

Additionally, the industrial Areas provide residential buildings on lease/ rent for employees of interested industrial units.

Several kinds of industrial renting are available. It includes industrial land, production unit, industrial shed, manufacturing facility, warehouse and container yard on lease on medium to long term basis.

Land can be converted for industrial purposes. Factories are available for rent at locations that are very desirable. Even those that have been closed down or are defunct have an opportunity to earn rent. They serve as godowns for some other industrial company for keeping inventory or manufactured goods.

Industrial Building

The traditional economics of the industrial marketplace is changing with Special Economic Zones (SEZs) and specialized industrial areas.

With construction costs remaining relatively unchanged over the past few years, rental rates for existing facilities are on the rise and with building technology becoming more sophisticated and cost effective, developers today are beginning to look at and evaluate potential sites in a much different way than they did earlier.

In the leasing of commercial structures and industrial rentals like the industrial buildings, the real estate side, landlords, owners and managers who expect to decrease vacancies will need to re-tool their building, financing and marketing strategies as well as increase their abilities and enthusiasm to make the right decision for customer needs and the work environment.