What is a warehouse in commercial real estate?

A warehouse in commercial real estate is a large, purpose-built industrial building designed for the storage, handling, and distribution of goods. Warehouses form the backbone of supply chain infrastructure connecting manufacturers, importers, retailers, and consumers in a systematic logistics network.

Types of Warehouses

• Public warehouse: Available to multiple users on a shared or rental basis.
• Private warehouse: Owned and operated by a single company for its own goods.
• Distribution centre: Focused on rapid throughput and distribution goods don't stay long.
• Contract warehouse: Dedicated facility operated by a 3PL for a specific client.

Key Specifications

• Clear height: 8–12 metres for standard; 14–18 metres for high-bay racking.
• Floor loading capacity: 3–7 tonnes per sq mt.
• Dock levellers and truck access bays.
• Fire suppression systems (sprinklers, hydrants).

Warehouses are the most actively traded industrial real estate asset class in India with cap rates of 7–10% and strong demand from e-commerce, manufacturing, retail, and FMCG tenants. Investors seeking stable, income-generating commercial assets with long lease terms should evaluate Grade A warehousing as a compelling portfolio component.