FROM WAREHOUSES TO WEALTH: GREEN FINANCE IS REDEFINING LOGISTICS REAL ESTATE

A recent report by JLL highlighted that investors are increasingly drawn to green warehouses as attractive investment opportunities.

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India’s warehousing sector is undergoing a profound transformation as it stands at the crossroads of economic growth and environmental responsibility. The transition from conventional industrial spaces to sustainable logistics infrastructure represents not just a change in building specifications, but a fundamental shift in how we conceptualise the future of logistics in one of the world’s fastest-growing economies.

According to property consultant JLL, institutional Grade A stock has tripled since 2019, with over 78 per cent of this space being green certified or in various stages of certification process. The projection of 270 million sqft of green warehouse stock by 2030 signals not just growth, but a fundamental realignment of the market toward sustainability.

WAREHOUSING AS AN ASSET CLASS

Investors, today, are increasingly drawn to green warehouses as attractive investment opportunities. From an investor's perspective, green warehouses are becoming a preferred investment decision.

Potential for higher rents: Some tenants are willing to pay premium rents for green spaces, potentially increasing the income generation potential of the asset.

Higher asset value: Green warehouses often command premium valuations due to their enhanced features and sustainability credentials. These properties tend to depreciate more slowly, maintaining their value over time better than traditional warehouses.

Increased tenant attraction and retention: Sustainable warehouses attract high-quality, environmentally conscious tenants, often leading to longer lease terms and lower vacancy rates. This tenant preference can result in more stable and predictable cash flows for investors.