The Role of Location in Selecting a Warehouse for Lease

Everybody’s got too much stuff they don’t want to get rid of—but can you blame them? There’s a sense of sentimentality to them. On the other hand, some business owners are running out of storage space for their stocks and products. The solution to both of these problems is renting out warehouses! But with so many warehouses for lease on the market, how do you find one that’s appropriate for you? In today’s article, we’ll be focusing on how important site selection is when it comes to choosing warehouses for lease.

Why is location a determining element in choosing a warehouse?

Selecting the right location for your warehouse can influence how your business operates, and it can improve it by providing an efficient supply chain and lower operational costs; this is why many warehouses for lease are strategically placed in prime locations. With quicker delivery, you can expect enhanced customer service and improved logistics.

Important factors to consider when choosing a warehouse location:

Accessibility to suppliers and customers. Your choice of warehouse should be located in proximity to your supplier so you can lower transportation costs and shorten lead times. Ideally, it should also be located within reach of your target market, adding more exposure to your business, reeling in more clients, improving customer satisfaction, and reducing your delivery times.

Land costs and development. Keep in mind that prime locations come with a pretty hefty price tag, so you should work on creating a realistic budget. Be that as it may, acquiring a good site is a great investment; as long as you have the budget for it and the business chops, you can see your return on investment sooner than later.

Speaking of budget, you also need to factor in the future development of both the land and your warehouse; you can allocate more space for other infrastructure, or you can do environmental remediation if needed.

Labor market. Aside from suppliers and customers, you also need to check if the site location of your future warehouse is within reach of the local workforce. It’s better to hire local skilled workers to help out with your operation, but do check their labor costs since it can also impact your operation expenses.

Transportation infrastructure. Your ideal location must also have easy access to transportation terminals and major highways to enable efficient transportation of your products. For those involved in international endeavors, it’s best if your warehouse is also near the airport for timely imports and exports.

Local regulations. Before everything else, you also need to make sure that your warehouse is situated in the right zone—it should fall under industrial or warehouse use. Aside from this, also check the local property tax rates since they could vary depending on which jurisdiction it falls into.

All the aforementioned are some of the main factors that can determine if your location of choice is a good site for your warehouse. Ultimately, it’s crucial to conduct a thorough site analysis to ensure that the site is compatible with industrial uses.