What is Grade A warehousing, and how does it compare to Grade B?

Grade A warehousing signifies modern facilities built to international standards, emphasizing efficiency, safety, and tenant requirements. These structures typically offer ceiling heights of 12–14 meters, flat high-load-bearing floors, wide column spacing, and advanced fire safety systems. Many also feature automated racking systems, dedicated docking bays, and ample parking for trucks while incorporating sustainable measures like solar power and rainwater harvesting.

In contrast, Grade B warehouses are older or less uniform. They may have irregular layouts, lower roofs, and minimal or outdated racking systems that impede automation and scalability. Maintenance practices in Grade B facilities may also be subpar, leading to higher vacancy rates and lower rental yields compared to Grade A buildings.

Logistics providers and corporate tenants often prioritize Grade A assets for long-term leases due to superior safety features, operational flexibility, and brand reputation. As India’s warehousing sector matures, institutional investors increasingly prefer Grade A developments, driving consistent upgrades in design, technology, and environmental compliance across the industry.