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 |
| 1 | The space is used for storage | The space is used for manufacturing |
| 2 | The tenant invests minimally in property improvement | The investment on upgradation of property is high |
| 3 | The investment on business infra is minimal | The Investment of Business infra is huge |
| 4 | The operations conducted inside are fairly simple | The operations are most commonly plenty and require skilled workforce with a higher count |
| 5 | The landlord needs to keep the tenant happy and property maintained to ensure that the tenants stays for longer | The tenant depends on the landlord for further expansion in the same premises |
| 6 | The agreement terms and lock in are shorter periods | The agreement terms and lock in are for longer period |
| 7 | Easier 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 |
| 8 | Damage to the property is minimal | Damage to the property is more but however the tenant needs to maintain the property fully himself |
| 9 | Tenants can vacate at short notices as material and racks can be shifted easily | Tenants need longer term notices to vacate as production plans need to re-set |
| 10 | Warehousing tenants vacate spaces if they get better deals elsewhere and have issues with annual increments | The tenant stays long term as the cost of setting up in an new alternative property is high |
| 11 | Post tenant vacation repairs are minimum | The repairs to the property post tenant vacation are very high |
| 12 | The constant churn of tenants keep the vacancy period longer | The vacancy time over long term periods are less as fewer tenants occupy the space |
| 13 | A 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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