4 worst mistakes we should avoid while renting a warehouse?
The 4 worst mistakes that anyone can make while renting a warehouse are: Choosing the wrong location, the absence of proper infrastructure like roads, power labor, transport, social infrastructure, etc.…
- 1st worst mistakes Choosing the wrong location, the absence of proper infrastructure like roads, power labor, transport, social infrastructure, etc.
LOCATION is a fundamental requirement for choosing a warehouse for rent in Chennai. Choosing a location that is not logistic friendly, and does not have access to multiple zones from there will be a major mistake. If the location shortlisted has no access to road, rail, air, or seaport will increase the cost of transporting raw materials to the warehouse. The location should be ideal for procurement and the arrival of the raw materials.
When choosing the location of a warehouse the demand zones should be considered. The property should not be located in fewer-demand areas across several zones.
POWER AVAILABILITY A warehouse situated in a location there is a shortage of power for it to function will lead to a delay in production as factories require high power availability to operate huge machinery.
An Industrial property should be located in zones where power can be easily and quickly made available
- 2nd worst mistakes Choosing the wrong size of the property or matters related to improper financial planning, budgets and rentals
SIZE OF THE WAREHOUSE: An optimum warehouse size is neither too big nor too small depending on the operation’s requirement. Choosing an inappropriately sized warehouse will lead to an increase in rentals if large spaces are rented that are not being utilized. If the size is too small, storage of raw material, line of manufacturing and storage of finished goods will be a constrain to manufacturing units
To choose the right warehouse size we need to consider the common parameters to calculate space
- Loading and unloading area
- Movement space of men and machines
- office space, meeting rooms, cabins
- Pantry, Restrooms, security rooms, first aid room
- Parking areas
- Setbacks
Budget & Rentals Setting the right rental budget is vital for a property. Warehouses with better infrastructure will demand high rentals. If one is looking out for a Warehouse for rent in Chennai with better facilities, they should be prepared to spend on rental accordingly.
One should consider the following factors considering the rental budget.
- Location
- Quality of the property
- Specifications
- Internal Infrastructure
- Demand and Supply
- 3rd worst mistakes Getting a property with wrong specifications, without approvals, and without fire safety
NOC & APPROVALS: A Industrial property should have complied with all statutory compliances and the following basic approvals should be in place
- Land & Building approvals including local body approvals
- Fire and (rescue) services department – (Fire NOC)
- Pollution (Control) Department – No objection certificate (Pollution NOC) based on industry categorization by the colour – green, red, or orange.
- 4th worst mistakes Not using a local expert to guide you on local issues, matters related to government, infrastructure, market dynamics, availability of skilled manpower, unionism in labour or transport etc
INFRASTRUCTURE: There are also a few basic infrastructure requirements such as the availability of public transport facilities and ease of access for the workforce. If the warehouse is located very far away from access to public transport facilities, the workforce will find it to reach the workplace on time.
Also if a warehouse is located where the road width is too small for container access, then the goods cannot reach the warehouse. Warehouses require access for huge containers/ trailers that help in the movement of goods and the access roads to accommodate these heavy vehicles.
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