Rental Income for Warehousing or Logistics Use

If the land is developed into warehousing or logistics facilities, rental income depends on built-up area, location, and property grade (Grade A or B).

  • In established industrial zones, Grade A warehouses command ₹18 to ₹25 per square foot per month
  • Grade B facilities may earn ₹10 to ₹15 per square foot per month depending on accessibility and infrastructure

Rental Income for Manufacturing Units

Developed industrial sheds or build-to-suit manufacturing spaces may offer slightly lower rents but longer lease tenures.

  • Typical rental rates range from ₹12 to ₹20 per square foot per month
  • Long-term leases (5–9 years) with escalation clauses are common in manufacturing agreements

Example Calculation

For a 50,000 square foot industrial shed:

  • At ₹20 per sq ft/month, monthly rental income = ₹10 lakh
  • Annual rental income = ₹1.2 crore
  • Yields can range between 6% to 10% annually depending on development cost and tenant quality