Industrial Investment

In build-to-suit (BTS) and income-generating industrial property transactions, certain types of purchase agreements (PAs) are structured to make tenant lease execution a mandatory condition for deal closure. This ensures that the buyer acquires a secure, income-producing asset and that the seller delivers a stabilized, lease-backed property. Below are the main types of purchase agreements where tenant...

Securing financing before tenant occupancy—especially in build-to-suit (BTS) or speculative industrial development—requires careful structuring to mitigate risk for lenders or investors. Developers typically blend debt, equity, and pre-lease commitments to bridge the construction period, maintain liquidity, and ensure timely completion. Below are the key financing structures used to support...

Aligning development timelines with tenant occupancy expectations and future resale objectives is critical for optimizing cash flow, lease-up success, and asset value at exit. Well-planned timelines reduce holding costs, ensure timely possession, and create a window for stable rental history before asset disposition. Below are the key timeline benchmarks and how they support tenant delivery and...

Build-to-suit (BTS) assets generally trade at premium valuations and lower capitalization (cap) rates compared to speculative or multi-tenant industrial properties. Market comparables reveal that investors are willing to pay more for BTS assets due to their predictable income, long-term leases, and tenant-specific infrastructure. Below are the key factors and patterns that comparables typically show...

Anchor tenants play a crucial role in industrial parks and build-to-suit developments. Their presence attracts secondary users, increases land value, and de-risks the project for investors. To secure their long-term commitment—typically 9–15 years—developers must offer a mix of financial, operational, and strategic incentives tailored to the tenant’s business priorities. Below are the key...

When industrial property is intended for sale to institutional buyers (such as REITs, funds, or core asset investors), the creditworthiness of the tenant becomes a central valuation factor. Institutional buyers prioritize stable, long-term cash flows backed by financially sound tenants. As such, sellers must perform thorough due diligence to confirm and document the tenant’s financial health, legal...

While build-to-suit (BTS) properties are designed to meet a specific tenant’s operational needs, over-customization can negatively affect resale or re-leasing potential once the original occupant vacates. The more a facility is tailored to one user’s niche processes, the less adaptable it becomes for the broader market, resulting in a limited buyer pool, higher retrofit costs, and longer vacancy...

Build-to-suit (BTS) industrial projects often require customized layouts, structural upgrades, and regulatory-specific features, making their cost-per-square-foot (₹/sq.ft) significantly different from standard shell buildings. The benchmarks vary depending on usage type, location, construction grade, and tenant specifications. Below are the cost benchmarks categorized by industrial use type, with...

Build-to-suit (BTS) demand is led by industrial users who require customized facilities that align with specific operational, spatial, or regulatory needs. These users typically prefer long-term leases or ownership, high-performance infrastructure, and strategic location benefits. Regional build-to-suit trends are influenced by proximity to supply chains, ports, highways, and workforce hubs. Here are...

Designing industrial buildings and infrastructure with adaptability in mind allows future buyers or tenants to reconfigure or expand usage without major structural modifications. This strategy increases the asset’s long-term value, widens its buyer appeal, and supports multiple industry types over its life cycle. Below are the key construction specifications that promote future-use flexibility: 1....