Why Built-to-Suit Industrial Properties Are Gaining Momentum in India.
India’s industrial real estate market is evolving rapidly. With the expansion of manufacturing, logistics, e-commerce, and global supply chains, businesses are demanding customised industrial spaces rather than generic sheds.
This shift has led to the rapid rise of Built-to-Suit (BTS) industrial properties — facilities designed and constructed specifically to meet a tenant’s operational, technical, and compliance requirements.
Built-to-suit industrial properties are emerging as one of the most in-demand asset classes across major industrial hubs.
What Is a Built-to-Suit (BTS) Industrial Property?
A built-to-suit industrial property is a facility developed as per the exact specifications of the end user. The design, layout, structure, power load, floor strength, and compliance standards are finalised in consultation with the tenant before construction.
Common BTS Industrial Uses
-
Manufacturing units
-
Logistics & distribution centres
-
E-commerce fulfilment hubs
-
Cold storage & food processing
-
Pharmaceutical & chemical facilities
-
Heavy engineering plants
Why Are Built-to-Suit Industrial Properties in High Demand?
1. Customisation for Operational Efficiency
Every industry has unique requirements. BTS facilities allow companies to design:
-
Column spacing
-
Floor load capacity
-
Clear height
-
Dock layout
-
Machine foundations
-
Utility placements
This improves productivity and workflow efficiency.
2. Compliance with Global Standards
MNCs and export-oriented units require:
-
Fire & safety compliance
-
Environmental norms
-
ESG standards
-
Labour welfare infrastructure
BTS properties are developed keeping future compliance in mind, reducing regulatory risk.
3. Long-Term Cost Advantage
Although BTS projects involve planning time, they:
-
Reduce retrofitting costs
-
Lower maintenance expenses
-
Improve energy efficiency
-
Minimise operational disruptions
Over the lease tenure, BTS facilities often prove more economical.
4. Stability for Property Owners
From a landlord’s perspective, BTS properties offer:
-
Long lease tenures (9–15 years)
-
Strong tenant commitment
-
Lower vacancy risk
-
Predictable cash flows
This makes BTS assets highly attractive to investors.
Industries Driving BTS Demand in India
Built-to-suit demand is strongest among:
-
Automotive & auto ancillary companies
-
Electronics & EV manufacturers
-
FMCG & consumer goods brands
-
Pharmaceutical & biotech firms
-
Third-party logistics (3PL) providers
-
Cold chain operators
These industries prefer tailor-made infrastructure rather than adapting existing sheds.
Why Industrial Hubs Are Ideal for BTS Development
Industrial corridors and MIDC zones are witnessing higher BTS activity due to:
Availability of large land parcels
Infrastructure connectivity (highways, ports, rail)
Power & water supply readiness
Zoning clarity and approvals
Locations like Chakan, Talegaon, Ranjangaon, Bhosari, and logistics corridors near highways are increasingly seeing BTS developments.
Key Considerations Before Opting for BTS
Tenants and investors should evaluate:
-
Land title & zoning permissions
-
Construction timeline
-
Lease structure & escalation
-
Exit clauses
-
Expansion flexibility
-
Compliance responsibility
Professional advisory is essential to structure a successful BTS transaction.
Role of Industrial Property Consultants
Built-to-suit transactions involve land, design, compliance, finance, and leasing — making them complex.
A specialist consultant like Authentic Properties assists with:
-
Identifying suitable land parcels
-
Coordinating with developers & owners
-
Aligning design with business needs
-
Structuring long-term lease terms
-
Ensuring regulatory compliance
Conclusion
Built-to-suit industrial properties are redefining how businesses approach industrial real estate in India. With the focus shifting toward customisation, compliance, and long-term efficiency, BTS developments are set to dominate the industrial property market in the coming years.
For companies planning expansion and for property owners seeking stable, long-term returns, built-to-suit industrial assets offer a future-ready solution.
Authentic Properties provides expert advisory and execution support for industrial sheds, BTS facilities, warehouses, and manufacturing units across Pune and key industrial belts.