You are currently viewing 7 Central Tips Before Leasing a Warehouse in Chennai

    7 Central Tips Before Leasing a Warehouse in Chennai

    1. Location of Warehouse in Chennai 

    Warehouse Location

    Real estate is all about location. Whenever you look for a warehouse in Chennai look for a location that has

    • Good access from the highway
    • Public transport
    • Basic social good infrastructure
    • Good roads
    • Water facility/ sources
    • Easy entry and exit

    Logistics defines your location: Being accessible is one of the fundamental requirements for choosing a property for a storage facility. For example in the case of Chennai, a location for an E-Commerce distribution center alongside Poonamallee is considered central & is highly preferred due to ease of access to multiple zones from there

    Raw Material Warehousing 

    The first and most important aspect that goes into choosing a property is to identify from where and how your raw material will arrive. Raw materials may arrive by road, rail, air, or by seaport. Depending on these, it is advisable to choose a location to ensure that the procurement/ arrival of raw material is made easy. For example, for a thermal power plant, it is imperative to be close to a seaport if the coal arrival is by ships

    Demand & Supply factor of your produce/ product/ service:

    The consumption (demand) factor needs to be considered when choosing the location of a property. The supply could be for local or domestic consumption or export and this should define the ease of supplying the material as per the demand enters.

    The demand zones play an important factor in determining the location of a warehouse. For instance, an e-commerce giant has a hub in the heart of the city in Chennai at MKB Nagar as it can easily cater to most of its high-demand areas across several zones.

    2. Focus on Size before leasing Warehouse 

    A basic understanding of the size needed is very essential when you look for a warehouse for rent in Chennai. A storage facility that is too small will be cramped and will be uneasy to manage. A very large property will be wasting space and also will be a financial drain on unutilized space.

    Size of Warehouse

    The shape of the warehouse should make it efficient to utilize. The outer open areas should have some state-of-the-art landscaping, parking, good driveways. Optimum size is required to be taken into account so that rentals are saved on wasteful spaces and yet space is not less for manufacturing/ processing/ storage etc. We need to plan and calculate spaces for:

    • Common parameters: Loading and unloading area; Flow of material (ease of); Processing space & movement of men and machines; Office space/ meeting rooms/ cabins/ dining areas/ waiting areas etc; Restrooms/retiring rooms/ security rooms/ toilets/ first aid room etc; External areas for parking for staff vehicles and heavy vehicles; Setbacks for fire engine movement/ water & sewage facilities etc;
    • Warehouses for rent in Chennai has high demand material will naturally mean a huge amount of stocks being stored. This thus dictates the size of the warehouse required apart from the above
    • Manufacturing It is important to consider sufficient spaces for storage of raw material, line of manufacturing, and storage of finished goods.

    3 .Budget:

    Businesses have certain affordability. It is important to understand where the goods are coming from and where they are going. Last-mile transportation can be very expensive and therefore for retail and multiple deliveries it is imperative to be closer to the city and pay more.

    For lesser frequent deliveries and larger packages, it may be more economical to pay lower rents away from cities. Properties that are better located with better facilities will command a higher rental and those that are built for a particular (customized) use will command even higher rentals. The rentals depend on factors such as :

    • Location – a location closer to the city/ demand center will command higher rentals
    • Quality of the structure/ property – depending on age and suitability, the rental will vary
    • Specifications – A property with better features will command a better rental – detailed in another document
    • Internal good Infrastructure available within the property
    • Demand and Supply – A location where demand outstrips supply will command a higher rental

    4. Height:

    It is important to use a warehouse in cubic feet rather than in square feet and height at the eaves or side height could help to stack and to rack and make your warehouse in Chennai highly efficient financially. A floor height of 1.2 meters is needed for sheds where the material is delivered by trailers and container vehicles which lower dock height is needed for delivery using smaller vehicles

    5. Shutters, docks, and dock doors:

    To enable faster and more efficient movement of goods into and out of your warehouse for rent in Chennai, it may be important to have more dock doors and have them at the right locations to enable multiple vehicles for loading and unloading at the same time to enable warehouse services

    Dock Doors

    6. Safety parameters:

    A state-of-the-art warehouse for rent in Chennai should have all approvals in place. NOCs including Fire NoCs etc should be in place. Following government norms ensure the safety of occupants and goods and material. Fire hydrants, sprinklers, emergency exit doors save money and problems though expensive initially.

    7. Financials, Market intelligence & the right people to work with:

    A warehouse in a new location means that you need to know the right price to pay as a rental. Market intelligence on local problems and issues will save you the wrath of problem creators. Always choose a local expert or a warehouse expert broker who knows all warehouses and all warehouse owners in the local market and he can help you with the above.

    For any other Questions regarding Warehouse rental in Chennai/ Area-wise Warehouse Rent in Chennai Contact Us.


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