Cap Rate in Developed Industrial Zones

In well-established industrial markets such as Chennai, cap rates for fully developed and leased industrial properties remain attractive for investors.

• Typical cap rate range is 7% to 9% for Grade A warehousing and industrial use
  
• For Grade B or smaller standalone industrial assets, cap rates may range from 9% to 11%

Factors Influencing Cap Rate

Cap rate varies based on asset quality, tenant profile, lease terms, and market location. Stable income and strong demand reduce risk and compress cap rates.

• Properties with long-term leases and anchor tenants attract lower cap rates
  
• Locations near logistics corridors and ports support stronger investor appetite
  
• Assets with higher vacancy or low-grade infrastructure tend to trade at higher cap rates