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Ways to Save on Warehouse Rental Cost

Ways to Save on Warehouse Rental Cost

While there are many types of warehouses and industrial properties available in the market, here are some tips which may be help your company save costs.

Long Term Lease

Unlike residential properties, most industrial users prefer to go for long term leases as they would have invested in the initial set up cost of the warehouse. While very long term lease may seem like a good idea, there is usually a cap as to how many years lease a company can sign at a time.

Go West

If you have not considered western Singapore such as Tuas, you may want to give it a go. Besides having more attractive warehouse rental rates, the future Tuas mega port is also just around the area. After all, all the existing ports will be consolidated to Tuas. Some companies may also have partners or suppliers operating in Tuas or in the West and it may be strategic to be nearby business partners. You may also want to consider Tuas South due to its strategic location.

Racking Systems

If your warehouse has got a good high ceiling height, your company may want to maximise the available space by having multiple tiers of racking. It is advisable to make sure that the maximum loading of the racking system is sufficient to withstand the items that your company will be storing at the warehouse.

Upper Floor Units

For some higher floor units, rental rates may be lower, making it more attractive to take up leases for top floor industrial units. You may also have a higher ceiling height if you are at the upper most level for certain developments but this would depend on the specifications of the building.

High Ceiling

While high ceiling may not always be useful for residential properties, it can be an added advantage to have high ceiling for industrial properties as your company will be able to use the space by racking up. Your company may also need to invest in stackers or forklifts in order to load and unload your products more quickly and efficiently. Do note that if you are stacking up and having many tiers, it is advisable that you take note of the maximum floor loading of the industrial space so that it is within the maximum allowable loading.