The Industrial Park Glossary: Key Terms You Need to Know

The world of industrial parks comes with a unique set of terminology. Understanding the key terms will help you make informed decisions and speak easily to anybody in the business.

 Here’s a handy glossary to guide you through the essential jargon.

A - C

Anchor Tenant: A major business or company that serves as the primary occupant of an industrial park, often attracting smaller businesses.

Build-to-Suit (BTS): A real estate development model where facilities are designed and constructed to meet the specific needs of a tenant.

Cluster Development: The strategic grouping of businesses within an industrial park to maximize efficiencies, share resources, and foster collaboration.

D - F

Dedicated Infrastructure: Essential utilities and services, such as power, water, roads, and telecommunications, designed specifically to support industrial operations.

Economic Free Zone (EFZ): A designated area offering tax incentives, relaxed regulations, and other benefits to encourage investment and trade.

Foreign Direct Investment (FDI): Investment by a foreign company into a business or facility within an industrial park, often bringing capital, expertise, and job creation.

G - I

Greenfield Development: Industrial development on previously undeveloped land, offering companies flexibility in design and layout.

Heavy Industry: Manufacturing sectors that involve large-scale production, such as steel, automotive, and chemical industries.

Industrial Estate: Another term for an industrial park, referring to a designated area developed for manufacturing, logistics, and related industries.

J - L

Joint Venture (JV): A business arrangement in which two or more companies collaborate to develop or operate within an industrial park.

Logistics Hub: A key location within an industrial park dedicated to storage, distribution, and supply chain management.

M - O

Mixed-Use Industrial Park: A development that includes a mix of industrial, commercial, and sometimes residential spaces.

Occupancy Rate: The percentage of leased or occupied units within an industrial park, indicating demand and business activity.

Operational Expenditure (OPEX): The ongoing costs required to maintain and run industrial facilities, including utilities and maintenance.

P - R

Plug-and-Play Facilities: Ready-to-use industrial spaces equipped with essential infrastructure for immediate business operations. 

Renewable Energy Integration: The use of sustainable energy sources, such as solar or wind power, within an industrial park.

S - U

Special Economic Zone (SEZ): A specific area with regulatory and tax advantages aimed at boosting economic activity and attracting foreign investment.

Supply Chain Management (SCM): The coordination of production, transportation, and logistics to optimize efficiency within an industrial park.

Utilities Corridor: A dedicated space for essential services such as water, power, and telecommunications to support businesses within the park.

V - Z

Value-Added Services (VAS): Additional services offered by industrial parks, such as business consulting, training, and financial support.

Warehousing Facilities: Storage spaces designed to accommodate goods before distribution or manufacturing.

Zoning Regulations: Government-imposed rules dictating land use and business activities within an industrial park.