Warehouse or godown leasing is a very strategic decision which controls your entire supply chain. This decision will have an effect on overall efficiency of the distribution process. Many factors will influence your decision. We have given a comprehensive list which needs to be considered before finalizing your warehouse or godown for rent.

  • Location:

    • This is very important to be near to your customer and logistically viable.

  • Zone:

    • You need to enquire about zones whether warehousing activity is permitted and products to be handled are safe to be handled in the said area.

  • Type of property:

    • This will depend upon the product you are going to handle and your height requirement. Normally with RCC the maximum height you can get is 16 ft and with shed 24-50 ft depending upon project.

  • Property Title:

    • Title of the property and whether it is authorized along with all necessary government approvals in place.

  • Passage Adequacy:

    • This is for the vehicles which will be ferrying around whether they will be able to ply on the approach road.

  • Dock:

    • Number of docks or shutters and dock height to ensure smooth operations during inbound and outbound of material from warehouse.

  • Leakage profile and waterlogging during the rainy season.
  • Fire & Safety issues:

    • This point needs to be evaluated for insurance and safety point of view.

  • Electricity:

    • Power requirement along with service provider and load shedding history.

  • Labour:

    • Labour availability and labour union issue in the compound is a major factor to be considered for smooth day-to-day operation.

  • Transportation :

    • No entry hours in the city for big vehicles.Transportation should be an independent affair sometimes the local union imposes conditions to ply only their vehicles thereby creating issue when outside vehicle is used for day today affair.

  • Value Addition:

    • Property with fire hydrant and sprinklers.

  • Basic Rent of warehouse:

    • This is most critical factor to decide your monthly cost. Deposit: This is normally calculated in terms Monthly Rental x Nos. (Example 2 Months’ Rent).In North and Western parts of India it’s usually between 2-3 Months of rent .However in case of southern cities of India like Chennai, Bangalore it ranges between 6 Months to 9 Months of rent.

  • Maintenance/Security:

    • If the property is within a compound. This is additional cost which needs to be paid along with basic rent and is generally 0.5 to 1 Rs/Sq ft. added to base rent.

  • Availability of forklift/hydra:

    • In case you have the requirement of forklift or hydra. Same needs to be checked beforehand

  • Brokerage and service fee:

    • This needs to be agreed beforehand and paid after conclusion of the deal. Try to engage with reputed broking firm who can provide professional service and help you to take an informed decision. Godamwale can help you with your leasing and liasoning requirements professionally.

The above points are basic guidelines which needs to be considered before leasing a warehouse. You need to further take reviews about the property owners conduct and any issue which are faced by other existing tenants of the area.

The above process requires due diligence and market intelligence for taking correct decision. Godamwale can help you in your decision making process by shortlisting property as per your specification and helping you throughout the process of site visit, rent negotiation, agreement and helping you to set up the operation with all material handling equipments and necessary modification.