Developer demand for fully raw but strategically located industrial land parcels remains strong in growth regions, especially where urban expansion, logistics infrastructure, or policy incentives align with future development potential. Though these sites lack utilities or pre-built infrastructure, their strategic positioning offers long-term value and flexibility, making them attractive to specific developer profiles. Here’s an analysis of the demand under key dimensions:
1. Logistics and Warehousing Developers
- Seek large contiguous land parcels near highways, freight corridors, ports, or intermodal terminals.
- Prefer raw land for cost-efficiency and to design the layout optimally from the ground up.
- Avoid fully developed sites that impose restrictive legacy infrastructure or lease obligations.
- Use raw land to build high-clearance warehouses, cold storage units, or multi-tenant logistics parks.
2. Industrial Park and SEZ Developers
- Target raw land to develop phased industrial parks or Special Economic Zones (SEZs).
- Prioritize areas with future road and utility access identified in master plans.
- Large developers absorb infrastructure development costs as part of long-term monetization.
- Use the flexibility of raw land to create customized zoning blocks for various industries.
3. Build-to-Suit and Custom Facility Developers
- Cater to corporate clients needing tailor-made industrial facilities.
- Require unencumbered raw land to meet precise specifications for layout, access, and expansion.
- Favor land with minimal regulatory overlays or legacy development constraints.
- Often enter pre-purchase or joint development deals with landowners to reduce capital lock-in.
4. Real Estate Funds and Institutional Investors
- Acquire raw land for long-term land banking in areas slated for rapid industrialization.
- Seek entry before large-scale infrastructure upgrades are priced in.
- Engage in entitlement work, rezoning, or bundling with nearby parcels before resale or development.
- Focus on clean title, access potential, and policy alignment rather than immediate usability.
5. In-House Development Arms of Corporations
- Large manufacturing or logistics companies sometimes buy raw land for full control over building and compliance.
- Prefer greenfield development over retrofitting existing industrial zones.
- View land cost as part of a long-term operational cost optimization strategy.
- Focus on energy access, water sources, and local labor supply when assessing raw parcels.
