What location metrics attract national logistics or manufacturing tenants?

Hello LandBank

When evaluating land for large-scale industrial development, national logistics and manufacturing tenants rely on specific location metrics that affect operational efficiency, cost competitiveness, and long-term scalability. These metrics are used by decision-makers in site selection, due diligence, and lease/purchase negotiations.

Below are the key location-based metrics that attract high-value tenants:

1. Proximity to Major Transportation Infrastructure

  • Distance to National Highways (NH) or expressways should ideally be within 5–10 km.
  • Rail connectivity (especially for container and bulk cargo) within 20 km is highly desirable.
  • Port access (for export/import-driven businesses) within 100–150 km is a strong advantage.
  • Airport connectivity is important for time-sensitive manufacturing and high-value logistics.

2. Access to Labor and Industrial Ecosystem

  • Presence of an existing industrial workforce in the surrounding 15–20 km radius.
  • Proximity to ITI colleges, engineering hubs, or training centers.
  • Availability of worker housing, transportation access, and low attrition zones supports long-term operations.
  • Nearby industrial clusters or anchor industries (auto, pharma, electronics) offer supply chain and vendor synergy.

3. Utility Availability and Load Capacity

  • Confirmed access to high-tension power lines and transformer capacity.
  • Water availability of 20–100+ kiloliters/day based on industry type.
  • Presence or planned provision of sewage and stormwater drainage networks.
  • For logistics firms, fiber optic and data connectivity are an increasing requirement.

4. Regulatory and Zoning Readiness

  • Land must be within a pre-zoned industrial area or an approved layout by a development authority (e.g., SIPCOT, MIDC, GIDC).
  • Absence of environmental or legal encumbrances.
  • Fast-track approval zones or single-window clearance availability are highly preferred.

5. Scalability and Expansion The land parcel should be part of a larger industrial belt, with future scope to expand operations.

  • Surrounding land should be free from sensitive uses (residential schools, heritage zones).
  • Flexibility for built-to-suit options, warehousing design, or multi-phase plant setup.

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