Companies around the globe are growing. And since most businesses benefit from cost-effective warehousing solutions that can increase their sales capacity and improve their bottom line, ready-built, move-in-ready warehousing is an excellent option.
What a ready-built, move-in-ready warehouse offers
A ready-built, move-in-ready warehouse allows companies to move into their warehouse space quickly. This allows them to focus on improving business operations like inventory management and customer service rather than spending time planning a large construction project. And when the features and price are right, moving into a ready-built warehouse space is a better business decision than building a new facility.
What features are key to a ready-built, move-in-ready warehouse?
The features will vary by facility. At the very least, the warehouse must be habitable and up to code. The zoning must be accurate, the foundation must be solid, and the HVAC, plumbing, and electrical systems must be functional and safe.
Additionally, some property owners might be willing to include racking, pallets and mechanical handling equipment used by previous tenants.
How much does a ready-built, move-in-ready warehouse typically cost?
Most commercial real estate and warehouse spaces are priced per square foot or per square meter. However, there are a handful of factors that determine the actual price. Here are a few variables that could affect your warehouse cost:
- Geographical location
- Building size
- Building age
- Functionality of the HVAC, plumbing, and electrical systems
- Modern fire-safety features and systems
- Sustainable-design features such as LED lighting, solar panels, insulation, skylights, low-emitting paint, and xeriscaping
- Modern components that carry upfront costs but save on utilities, including motion sensor lighting or app-controlled thermostats
- Temperature-controlled space for frozen, chilled and AC areas of warehouse
There are also amenities that might increase the price. As you research new facilities, you’ll have to determine what you need versus what you consider a luxury:
- Parking area or other outdoor space
- Office space and common areas
- Retail showrooms
- Automated warehouse capabilities
- Shipping dock size
- Open yards and outdoor storage
You also want to make sure your rate includes critical services and building maintenance, including:
- 24/7 IT, power and water connectivity – with backup
- Controlled access and walled compounds with 24/7 security and CCTV monitoring
- Waste pickup, recycling and management
- Paved roads & drainage systems
Cost-effective warehousing is important in all aspects of the supply chain. Whether your company specializes in fields like packaging optimization or international shipping, your overhead and facility costs must fit your budget. That’s one of the many advantages of buying a ready-built warehouse.
What are the advantages of buying a ready-built warehouse over other types of warehouses?
With more and more consumers purchasing goods online, the need for e-commerce warehousing is on the rise. And because e-commerce companies often quickly need warehouse space to house their inventory and manage fulfillment, ready-built warehouses are perfect for them.
Not all companies have the time or liquid capital to build a brand-new warehouse or renovate an old facility. For companies that need affordable warehouse space right away, a ready-built warehouse is an excellent solution.
Who should consider a ready-built, move-in-ready warehouse?
Every company’s goal is to grow. And that often means increasing their warehousing capabilities. Particularly with the increase in online shopping, inventory-heavy industries like retail, consumer goods and technology need more space.
A ready-built, move-in-ready warehouse is an effective solution for all these companies and industries because it’s a fast and cost-effective way to increase their storage space. A large warehouse allows a business to keep more inventory on-site and serve more customers. And this leads to overall business growth.
What industries would benefit from a ready-built, move-in-ready warehouse?
Industries that need a lot of space very quickly can benefit from a ready-built, move-in-ready warehouse. For instance, when the COVID-19 vaccine became available to the general population, government health authorities and healthcare providers in many countries needed secure, temperature-controlled space or space to house temperature-controlled containers so that they could store vaccines and create distribution points. With no time or budget to build new facilities, move-in-ready warehouses were a solution.
The e-commerce and logistics-intensive industries—including the technology, automotive, and fashion industries—can also benefit from ready-built facilities. An existing building might require some warehouse improvement like design, layout, and automation. However, these upgrades come at a lower cost and a shorter timeline than a full build or renovation.
When are the best times to lease a ready-built, move-in-ready warehouse?
Businesses should consider two aspects of timing when they consider leasing a ready-built, move-in-ready warehouse:
- The time of year and how it might affect their operating costs
- Whether the timing is right for the company to lease a warehouse
Operating expenses fluctuate throughout the year—and this often depends on your geographical location. For instance, if your climate will have a dramatic effect on your heating and cooling costs, take that into consideration when you decide to lease a warehouse.
The timing also has to be right for the company itself. If your business is growing and needs more space to house its inventory and personnel—but isn’t quite ready to invest in a new facility—then leasing a move-in-ready warehouse can be lucrative. This allows you to invest in a larger facility for your inventory so that you can deliver goods to more customers. And since leasing a ready-built warehouse is often more affordable than new construction, it’s easier to negotiate a lease that’s within your budget.
Depending on the company’s financial health and projected future, buying a property could be a better investment than leasing. If your company has the liquid capital to buy a warehouse and plans to grow sales in the coming years, purchasing might be best. However, if you’d rather pay a fixed monthly cost and have the flexibility to leave the property when the contract ends, leasing is a better option.
How does the type of inventory you have determine if you should consider a ready-built, move-in-ready warehouse?
Your inventory is one of the main factors in determining how much warehouse space you need—and in creating an efficient warehouse layout and design. The more inventory you have, the more warehouse space you need. And to keep track of each inventory unit, your warehouse has to be well organized.
A great solution for companies with large inventory quantities is to lease a ready-built, move-in-ready warehouse. E-commerce and supply chain companies that receive their inventory in shipment after shipment of large containers need warehouse space they can move into immediately. And since they don’t have time to build or renovate a warehouse, they often turn to move-in-ready facilities.
Advantages of a ready-built, move-in-ready warehouse
A ready-built, move-in-ready warehouse comes with myriad benefits and advantages.
These facilities can save time, money, and stress. Since logistics park operators, landlords and property owners prepare their commercial real estate listings to be attractive to buyers and lessees, there shouldn’t be much to do once you move in other than to organize your warehouse layout. It can positively impact your company’s bottom line—and there are even tax benefits associated with leasing these properties.
What can a ready-built, move-in-ready warehouse do for both customers and employees?
A ready-built, move-in-ready warehouse can help both your customers and your employees.
One of the by-products of the increase in online shopping and supply chain changes is consumers’ expectations of rapid delivery, sometimes in as little as a day. To achieve rapid delivery, a company’s supply chain must be smooth and efficient. Any kink in the line will disrupt the production. A ready-built factory or storage space can help your company streamline its supply chain to decrease costs and increase productivity.
Additionally, this solution can benefit your employees. A business relocation can be a long process that takes hours’ worth of planning and execution. And planning the relocation takes employees away from performing their daily responsibilities. A ready-built, move-in-ready facility takes much of the stress away from the move and allows your employees to focus on doing their jobs.
How does a ready-built, move-in-ready warehouse affect your business’s bottom line?
Because ready-built warehouses are priced to sell or lease quickly, your business can save money on the actual property and building. You also won’t have to spend much on aesthetics or design options because the facility has been prepared for a tenant to move right in.
Many businesses that move into ready-built warehouses also save on labor costs because the employees spend less time laying out the warehouse plan from scratch. Although you’ll likely have to hire a moving company to transport your office materials, your employees can stay focused on their daily work tasks instead of organizing and planning the move.
What are the tax advantages of buying a ready-built, move-in-ready warehouse?
Move-in-ready warehouses can also come with tax benefits. Your company might qualify for tax savings via depreciation, interest, or deductions.
The actual tax advantages might depend on whether your company is registered as an LLC or a corporation. Before you estimate how much money you might save on taxes, be sure your company actually qualifies for such benefits.
How to source a ready-built, move-in-ready warehouse
It takes time and resources to relocate a business or storage operations. It’s a very exciting time in your company’s history, but it can also be stressful and labor intensive. You can make the process easier by knowing what to look for in a ready-built warehouse—and knowing where to turn for help.
What should you look for in a ready-built, move-in-ready warehouse?
As you look for a new warehouse space, you should create a checklist of what your warehouse needs to include for your business to run smoothly. Here are a few criteria to consider:
- Facility location: Find a location that your employees can easily commute to. And if you’re running an e-commerce business, look for a warehouse space near airports, ports, rail lines and road networks to expedite shipping. Location can affect the price, so be sure to budget accordingly.
- Warehouse layout: Although you can’t completely customize a move-in-ready warehouse, you can plot out each pallet rack, shipment processing area, and office space. The facility has to work well for your needs.
- Technology accessibility: Make sure the facility has the technological capabilities that you need. For instance, if the building doesn’t have access to reliable internet, you’ll have trouble tracking and processing orders.
- Building health: Before you sign a purchase agreement, have an inspector verify that there are no issues with the building itself. If there are problems with the foundation, plumbing, or electrical system, you could spend valuable time and money on repairs.
Where can you find a ready-built, move-in-ready warehouse?
Research and analytics are necessary during your search to find a ready-built, move-in-ready warehouse. You must make sure you’re looking in the right geographical areas and within your price range.
Because ready-built warehousing has become popular among e-commerce companies and supply chain businesses, many people see it as the future of warehousing. Fortunately, that means that these facilities have become relatively accessible and easy to find.
Who can help you source a ready-built, move-in-ready warehouse that suits your needs?
Your company might excel in areas like warehouse management, inventory management, and fulfilling your customers’ orders – or use a 3PL provider to handle those processes for you. Although your team has many talents, finding commercial real estate probably isn’t one of them.
Commercial real estate is a niche industry. Most companies who need a warehouse solution need expert help to find a ready-built warehouse to suit their needs. If your company is ready to invest in a new facility—regardless of whether you’re going to purchase or lease—you can partner with a real estate agent to help you find the best facility to help you grow your business.
Grow your business with a ready-built, move-in-ready warehouse
Increased consumer demand means that companies throughout the world are growing. Ready-built, move-in-ready warehousing is an excellent solution for many fast-growing businesses because they can increase your sales capacity and improve your bottom line.
As a leader in supply chain services and innovation, Agility has the knowledge, technology, and experience to help your business grow. Contact us to find out how we can guide you to invest in the best warehouse for your company, your customers, and your employees.