Warehouse Rental Yield in Greater Noida — 2026 Reality Check

Per sq.ft. rental benchmarks (2026, on built-up area)

Grade-A built-to-suit warehouse, Ecotech / EPE-adjacent sectors: ₹22–28 per sq.ft. per month (BUA) on long leases (28 years with 5-year lock-in, 15 percent escalation every 28 years).

Grade-B warehouse, mid-tier sectors (Site V Kasna, Ecotech 1A/1B): ₹16–21 per sq.ft. per month on similar lease structures.

Generic shed / single-storey warehouse, older sectors: ₹12–15 per sq.ft. per month, often on shorter tenures (3–28 years) with smaller corporate tenants or MSME operators.

Yamuna Expressway / YEIDA industrial sectors: ₹14–18 per sq.ft. per month for newer Grade-B+ assets. Limited Grade-A institutional inventory currently — most demand is satisfied through built-to-suit arrangements with the buyer's preferred contractor.

Capital cost — the input that decides IRR

Land cost (plot): use the per-sq.m. benchmarks from the sector guides. For a 4,000 sq.m. plot in Ecotech 11 today, ~₹15–18 crore.

Construction cost (PEB structure, ~18,000 sq.ft. of GBA on 4,000 sq.m. plot at 45 percent ground coverage): ₹4.5–6 crore depending on clear height, mezzanine, dock leveler count, fire compliance level and finish quality.

Soft costs (architect, structural, legal, approvals, NPCL power load, water connection, fire NOC): ₹40–80 lakh.

Total all-in for a Grade-B+ asset in this band: ₹20–25 crore. Achievable monthly rental ₹3.6–5.0 lakh (at ₹20–28/sq.ft. on 18,000 sq.ft.). Gross yield 1.8–2.4 percent of all-in cost.

The honest yield maths

Gross rental yield on built warehouse in this region runs 1.8–2.6 percent — lower than residential rental in tier-1 cities. The investment case is not yield — it is capital appreciation of the underlying land plus modest cash flow.

Net yield after maintenance (1 percent of construction cost annually), property tax (~₹1.5/sq.ft./month), vacancy (assume 8 percent), and asset management overhead: typically 1.4–1.8 percent of all-in cost.

10-year IRR including land appreciation (assume 8–10 percent CAGR on land, 4 percent on structure depreciation-adjusted): 11–14 percent. This is the actual return profile — not the 18–22 percent often pitched.

What drives top-of-band rents

Clear internal height 12m+: enables racking 5–6 levels high, which is what 3PL and e-commerce tenants demand. Sub-9m clear height caps your tenant pool to traditional warehousing.

Dock count and configuration: minimum 1 dock per 3,000 sq.ft. of GBA, with 1.2m dock height and proper dock leveler. Insufficient docks halve your tenant pool and 20 percent of your achievable rent.

Fire compliance to NBC 2016 / UPFEA latest norms. Anything below current code is a deal-breaker for any institutional tenant.

Power: minimum 250 kVA sanctioned load for any unit above 15,000 sq.ft. — 500+ kVA preferred for cold storage / temperature-controlled inventory. Sanctioned load (not just connected) is what tenants verify.

Surface: trimix concrete floor, FM2 flatness, 4 ton/sq.m. UDL minimum. Lower-spec flooring kills 3PL deals at the LOI stage.

Vacancy and tenant quality benchmarks

Greater Noida industrial warehouse vacancy in 2026: 6–9 percent on Grade-A, 11–15 percent on Grade-B, 18–25 percent on Generic shed inventory. Vacancy is concentrated in poorly-spec'd assets — well-spec'd new assets lease up in 60–90 days.

Tenant covenant quality: Grade-A leases skew to investment-grade 3PL operators (DHL, FM Logistic, Mahindra Logistics, etc.), large e-commerce direct (Amazon, Flipkart), and Fortune 500 manufacturers. Grade-B is dominated by mid-cap 3PLs and regional distributors — more bargaining on lock-in and security deposit.

Security deposit: standard 6 months equivalent rent for Grade-A, 9–12 months for Grade-B/Generic. Negotiate hard — security deposit erosion through delayed refund at lease-end is a real risk with weaker tenants.