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India's manufacturing sector is experiencing unprecedented transformation, driven by PLI schemes, the 'Make in India' initiative, and global China+1 supply chain diversification. With ₹2 lakh crore in realized investments and industrial absorption projected to exceed 80 million square feet in 2026, the opportunity for manufacturers has never been stronger.
The right commercial real estate strategy is the foundation upon which manufacturing success is built. Strategic facility selection directly impacts production efficiency, supply chain resilience, and bottom-line performance. A well-located Grade A facility with proper infrastructure can reduce logistics costs by 15-20%, ensure uninterrupted operations through reliable power and connectivity, and provide the flexibility to scale with demand. Conversely, poor facility choices create operational constraints that limit profitability for years.
Beyond location, commercial real estate decisions determine access to skilled labour pools, proximity to supplier networks, and eligibility for government incentives worth crores. With industrial rentals appreciating 5-10% annually across major Indian markets and vacancy rates tightening, manufacturers who partner with specialized tenant advisors gain competitive advantage through market intelligence, technical due diligence, and negotiation expertise that protects their interests.
Define Operational Requirements
Before beginning your site search, document your technical specifications: production footprint, power demand (KVA requirements and backup provisions), clear height needs (10-12 metres for Grade A), floor loading capacity (3-5 tonnes/sqm standard), and regulatory requirements including environmental clearances and factory licenses. With 80% of manufacturers investing in smart manufacturing technologies, ensure your facility can support future automation and Industry 4.0 integration.
Shortlist Markets Based on Strategic Criteria
India's eight major metropolitan regions offer distinct advantages for manufacturers. Supply chain connectivity, labour availability, and government incentives should drive your market selection. Delhi NCR and Chennai together account for 46% of total industrial leasing, while South India leads with 40% of commercial real estate revenue.
