The growing trend of leasing warehouses rather than owning them
Authored article by Aditya Virwani , COO Embassy Group
Warehousing industry has witnessed a huge shift from being ramshackle buildings to becoming the pillar of the MNCs, manufacturing, e-commerce, 3PL and start-up industries in India. Warehousing as an industry is fast growing; and is matching the rhythm with the competitive business environment and in the current fast paced technology with adaptation of the trend. These factors bring dynamic transformation for the business to cater effectively to varied sectors. Embassy Industrial Parks was formed to help companies and businesses avoid the extra sweat as we build and manage quality Grade A industrial, light manufacturing and warehousing spaces all over India with a successful and effecting leasing business model.These modern well planned, technology-enabled industrial and warehousing solutions are targeted at industry verticals like E-Commerce, 3PL, Automobile Ancillaries, FMCG and Retail. Embassy Industrial Parks are built with a commitment to offer a superior experience. We provide clients with class infrastructure and meet the demands of the companies by offering a customized experience.
There is a lot of hard work required to set up warehouses to cater to modern businesses. We take into consideration factors like strategic land positioning that makes business more convenient. We keep our focus on detail and provide globally approved amenities like rest areas for drivers, dormitories, round the clock canteen, first aid centres, 24/7 security coverage, an excellent fire fighting system, and ample parking space for trucks so the flow of the traffic remains unaffected and does not hamper workflow. We offer a larger infrastructure by setting up self-reliant logistic parks revolutionizing the concept of stand-alone warehouse building to provide built-to-suit space where clients can have up to 2X expandability on the same leasing model.
According to a recent published report leasing of warehouse spaces went up by 31 percent to over 13 million sq. ft. across eight major cities in the first half of this year. USD 200 million investments were received in industrial real estate segment. There is an evident explanation to the success of leasing model and why it has great prospects. When clients want to move into an office, they don’t buy office space, they rent it. Similarly, there is no reason to buy a factory/warehouse when leasing is faster and easier. Embassy Industrial Parks are integrated parks that are green and environment friendly. All upcoming parks meet standards that match IGBC Silver to Gold ratings. An initiative like ours fosters start-ups. If a well-funded start-up wants to take their business forward aggressively then they would take minimum risks and avoid hurdles they are likely to face while setting up a warehouse for e.g., land buying approval which is not their core area. We are offering good solutions and so are other upcoming players in the market. We offer the businesses the best quality infrastructure which is what they need for a smooth operation, not having to invest huge fund in it and also save time, we are completely responsible for the space and the management of the parks. It is a win-win situation for our clients and the business in general. Leasing is a potential model to work with as it helps in so many ways to the existing and new businesses. With the strong on going performance of real estate industrial sector one can expect expansion and partnership in leasing activity to strengthen by occupiers in the industry overall.
Embassy Industrial Parks is currently operational in Chakan – Pune, Sriperumbudur – Chennai, Farrukhnagar and Bilaspur – Delhi NCR and Hosur and Kothur – Hyderabad. We are planning to build 8 to 10 industrial parks around eight key-cities that include Mumbai, Delhi, Bangalore, Pune, Chennai, Hyderabad and Kolkata and then gradually move to metros. There will be more than one park in Delhi and Mumbai; 9 parks, over the next 3 years which will total to 35 million sq. ft. of potential development.