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    Who is a preferred tenant – Manufacturing Industrial or warehouse ?

    Is there a preferred tenant? This is a common question, Manufacturing Industrial or warehouse and Why? Make your choice as both have their advantages and disadvantages of manufacturing industrial and warehouse

    There are many factors that go into determining the preferred tenant for a property. The type of business, location, and proximity to customers are all important considerations.

    The type of business is an important factor in determining which one will be the preferred tenant. Manufacturing Industrial tenants typically require more space than Warehouse tenants, so they would be more likely to be the preferred tenant if there were two choices. If there were three or four choices, then location and proximity to customers would become more important factors.

    S.no

    warehouse

    Factory/ Manufacturing 

    1The space is used for storage The space is used for manufacturing
    2The tenant invests minimally in property improvementThe investment on upgradation of property is high
    3The investment on business infra is minimalThe Investment of Business infra is huge 
    4The operations conducted inside are fairly simple The operations are most commonly plenty and require skilled workforce with a higher count
    5The landlord needs to keep the tenant happy and property maintained to ensure that the tenants stays for longerThe tenant depends on the landlord for further expansion in the same premises
    6The agreement terms and lockins are shorter periods The agreement terms and lockin are for longer period
    7Easier to design and develop as a single shed Tougher to plan as too many amenities are to be built and provided to the tenant – example additional areas like – transformer yard, first aid rooms, workers canteens, restrooms for Blue/ white collar and women and children etc 
    8Damage to the property is minimalDamage to the property is more but however the tenant needs to maintain the property fully himself
    9Tenants can vacate at short notices as material and racks can be shifted easilyTenants need longer term notices to vacate as production plans need to re-set
    10Warehousing tenants vacate spaces if they get better deals elsewhere and have issues with annual incrementsThe tenant stays long term as the cost of setting up in an new alternative property is high
    11Post tenant vacation repairs are minimumThe repairs to the property post tenant vacation are very high 
    12The constant churn of tenants keep the vacancy period longer The vacancy time over long term periods are less as fewer tenants occupy the space
    13A warehousing tenant can be vacated faster and easier as the investment is low in the property and the material can be moved out easier In case of financial failures and liquidation, the landlords problems are long term as the premises may be locked for long periods with creditors and shareholders 

    So, what is your preferred choice on preferred tenant and why? comment it 

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    For more information and knowledge you can read  cost of a warehouse 

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