The decision to select an appropriate area of land is probably the most critical in determining whether or not your company will be successful. The location you select for your business will have a significant impact on your operational cost to build and operate your facility; the efficiency of your operation; and ultimately the long-term viability of your business. Therefore, in this blog post, I will discuss the major land-based factors that help determine which locations are most suitable for conducting industrial type operations; why those factors are so important; and how those factors influence overall business success.
1. What Is Industrial Land?
In addition to meeting the physical aspects of the land, as well as the zoning laws that apply in your local jurisdiction, you must comply with any/all local regulations that pertain to land use in an industrial context. For example, a manufacturing facility, warehouse, or other industrial facility can have different zoning requirements than a residential area or an agricultural area. Prior to developing an industrial site, a developer must obtain the necessary zoning approvals and/or regulatory approvals for their project. Additionally, a developer of industrial property may need additional infrastructure beyond what is required for residential or agricultural uses.
2. Top Land Types Favoured for Industrial Use
Flat or Gently Sloping Land
Why is it important: Flat topography does not require a large amount of "cut" or "fill" to develop that particular land parcel as well as many times the cost to do so may be too expensive .
Advantages:
- less cost associated with excavating and grading the site
- construction of large, heavy structures will be easier and less time consuming
- layout of factories, roadways and utility lines will be much simpler and less time consuming to develop
Ideal for: large factory buildings, warehouses and logistics centers.
Strong, Stable Soil with High Load-Bearing Capacity
Soil characteristics industries prefer:
- Sandy soils and soils with a high gravel content
- Granular soils that are well graded
- Soils with low potential for shrink-swell
Why this is important:
Most industrial developments require significant equipment , storage areas, and very large footprints for buildings and facilities. Therefore, poor quality soils may cause foundation settlements, cracks in structures over time, and other long-term maintenance concerns.
Selecting land with stable soils greatly reduces the risk of foundation failure, which also saves engineering costs.
Good Drainage and Water Management
In order to allow for adequate drainage of rainwater (which reduces the potential for waterlogging) a site that drains easily is preferred.
Why does this matter?
Too much water in the ground or on the surface could result in weakened building foundations, damaged machinery/equipment and disrupted normal operational activities.
Drainable soils are typically sandy and coarse soils which retain less moisture compared to fine textured soils as they have a lower water retention capacity.
Proximity to Utilities and Infrastructure
Industry relies upon (access to):
- Highways and roads
- Ports and rail lines
- Grid for electricity and water
- Sewage and water supplies
Located strategically near major transportation routes, land can improve industry’s connectivity and lower cost of transporting goods by improving the supply chain.
Zoning and Legal Clarity
Before purchasing industrial land, ensure:
- Local zoning permits industrial use
- No environmental or land-use restrictions
- Proper titles and clear ownership
This avoids legal roadblocks and future redevelopment costs.
Economic and Regulatory Considerations
Some locations may offer:
- Tax incentives
- Industrial subsidies
- Infrastructure support
- Government-backed industrial parks
Such incentives can transform a good land choice into an excellent business opportunity.
3. Types of Land Locations for Industry
Urban Industrial Land
- Features: Close to cities, labor forces, and consumer markets.
- Best for: Light manufacturing, data centers, food processing units.
- Pros: Excellent infrastructure and access to supply chains.
- Cons: Higher land prices and stricter regulations.
Rural/Semi-Urban Land
- Features: On the outskirts of cities or in satellite towns.
- Best for: Agro-based industries, large factories requiring more space.
- Pros: Lower land cost, easier expansion options.
- Cons: Might require additional infrastructure investment.
Resource-Based Land
- Features: Near natural resource deposits (minerals, metals, etc.).
- Best for: Cement plants, steel mills, and heavy processing industries.
- Pros: Reduced raw material transport costs.
- Cons: Often remote locations with limited workforce availability.
4. Factors You Must Evaluate Before Buying
Prior to investing in industrial land you should assess the following:
- Soils quality and engineering reports :
You will need to conduct geotechnical investigations to determine how much weight your industrial building can bear and to find out about the potential for settling of your site. - Connection to highway, rail lines, logistics corridors etc., :
Determine what routes are available to reach your facility. - Availability of workforce :
The availability of a large enough pool of skilled and unskilled labor impacts both your operational cost and the ability to expand your business. - Environmental and regulatory compliance:
Ensure that all pollution controls and regulations such as land use approvals and CMAs (conditional use agreements) are met.
5. Why Choosing the Right Land Matters
Choosing the best land for your business is as much about the potential of that land as it is about the size of the property. Here are some ways to use land to help you create a better long-term plan for your company:
- Use less money in initial construction and later maintenance
- Improve your supply chain and transportation
- Recruit and retain highly educated employees
- Comply with environmental and regulatory requirements
- Create sustainable growth opportunities with lower risk to your operations.
The most suitable land for an industry is a combination of the strongest soil quality, the flattest terrain possible, the best infrastructure to be found at that location, clear legal structure as well as the best strategically located property. Whatever type of facility you plan to build (factory, warehouse, logistics hub), this will ensure that your investment will generate returns over time, and allow you to have the advantage of being able to compete effectively.
To get personalized help and assistance in finding the best industrial plot(s) for leasing purposes, check out what Maha Industry has available here.
