Should you Buy or Rent a Warehouse Space Here’s Everything to Know
Looking at the current market scenario, the warehouse industry has seen a great hike in the demand for renting and buying. This increasing demand creates a mess for the new business owners whether they need to buy or rent warehouse space for their business. Well, in this guide, we will try to clear this dilemma by comparing both pros and cons of buying and leasing warehouse space. After going through this guide, we hope you will have a clear vision of what you need to do as per your business requirements.
Factors to Consider while Buying/Renting a Warehouse Space
Although there are a lot of factors that influence while buying or Industrial Space for Rent in Gurgaon, we will consider only the major ones that you should never skip while making your decision.
- Available Capital
- Projected Future Growth
- Storage Requirements
Buying Warehouse Space
First, let’s consider the pros and cons of buying a warehouse space for your business. Do note that, the decision is solely yours whether you want to buy or choose a warehouse space for rent Gurugram or any other place, but it is important To consider the given points to make a profitable and suitable decision for you.
- Flexibility: By owning a property, you are flexible to make any changes or in simple words, you can easily use the warehouse space in the way you want without any permission.
- Stability: In contrast to the yearly increment in the rentals of the warehouse, owning a warehouse space will only cost you a one-time investment.
- Equity: Buying a warehouse space is a sort of investment that grows continuously in terms of value. So, with your business, the value of the warehouse space will also increase.
- High Upfront Cost: It is one of the biggest con of buying a warehouse space. You need to afford a huge upfront cost of the deposit.
- Property Maintenance: Another downside is building maintenance. You are responsible for all the maintenance of the warehouse to make it running that costs directly from your pocket.
Leasing Warehouse Space
Now, let’s see the pros and cons of leasing warehouse space for your business.
- Multiple Options: While leasing warehouse space, you will have tons of spaces to choose from as per your needs as well as budget.
- Flexibility: With a rental warehouse, you are free to move to a better facility as your business grows to some extent.
- No Building Maintenance: Since you are leasing a warehouse, you will not be responsible for building maintenance.
- Fluctuating Rates: Since leasing a warehouse space is based on monthly rentals, it fluctuates regularly which is one of its disadvantages.
- Less Control: With rental warehouse space, you will not have any control over what happens to the property. This might affect your business growth.
So, that’s the end of this guide. I hope, you now have a clear vision before you buy or rent warehouse space. I hope it helps!