5 Factors to consider when choosing a location to rent a Factory
28 October 2022
There are several points to take into consideration when choosing a proper location to rent a factory in Thailand. These Factors are important for the supply chain and logistical processes of your business therefore the next time you are renting a factory, do proper research and evaluate the options you have. This will affect all aspects of your business from branding, employee workflow to your customers' satisfaction. However, in order to make an informed decision, this article will run through the main points to get the best out of your factory rental.
1. Location
The location of where you are renting a factory dictates everything. Depending on the nature of your business, whether that's heavy machinery or the quick transportation of goods, you need to find a location that can quickly deliver products to your target market.
Conversely, do not rent a substantially large factor to eliminate wasted space. Keep in mind that you need a space that's not too small that it won't store all your goods properly.
The location of your property should also have all the utilities like electricity, water, internet, and can easily access to main transports. These include important highways, airports and seaports and other main public transportations. This is also crucial if your type of business is importing goods from international suppliers and need access to the airport to reduce transportation costs.
Frasers Property Industrial (Thailand) can help you to locate factories in industrial zones that fit your needs and preferences. We also offer built-to-suit factories for rent. These strategic locations (that) are not heavily congested and will reduce high fuel consumption costs and product delays as it is closely located to all prime destinations and is within safe parameters.
2. Facilities of the Rental Factory
The facilities of your chosen location should have everything you need for convenience. You can ask yourself these questions to determine if the functionality of your rental factory meets your business goals:
Does the factory come with enough parking area?
Are the dimensions of the factory; in terms of its size and height, outside road width, and loading capacity, meet the needs of your Business operations.
Asking yourself these questions will help you weigh the best option for a proper rental factory.
3. Rantal Contracts and Terms
As you would probably know, the rental price and leasing terms depend on the contractual negotiations with the landlord. At Frasers Property, we understand the hassle of property taxes and zoning laws in Thailand therefore we will happily assist you in these procedures as you are in good hands with our team of Thai experts. All the conditions will be laid out and written to avoid any scams and further costs to your business. Such conditions stipulated on the rental contracts will cover any unexpected events like a natural disasters and who’s accountable to take care of it. Other things such as: do you have to pay for renovations? Will you have any sudden changes if you decide to renew the lease contract? These are all important factors to consider.
4. Other Expenses
There are always some unexpected hidden costs that can arise later on. However, these can be avoided from at the beginning by stipulating the clauses and rental contract terms between the owner of the property and the tenant. The responsibilities of who will cover property damages such as fire hazards or any other renovations needed should be clearly defined in the contract.
It is also imperative that you inspect the factory in terms of all the facilities and other factors mentioned earlier on to reduce any other surcharges that come through utilities, parking fees, insurance, etc. Furthermore, you should check to see if the unemployment rate is high in the area and if the market has skillful workers to. The strategic locations we offer will give you ample opportunities to a vast labor pool as well so you are at a further advantage.
By evaluating all these costs, you can then determine if the rental factory is suitable and flexible for the growth of your business in the long term.
5. Sustainable Measures
Last but not least, you want to ensure that your factory adopts practices that meet CSR (Corporate Social Responsibility) goals.
Frasers Property adopts sustainable measures which aim to reduce greenhouse gases emission to 0% by 2050. We can take your business in a greener direction while helping you achieve your business goals.
Final Thoughts
Every successful business owner knows that it is essential to consider all the factors mentioned above before making any decisions. Perhaps other points you might want to consider are the competition and market saturation. If this is the case then you might want to reduce your rental costs and find something more affordable.
Choose an intelligent investment by renting a factory that helps your business instead of hindering its development. With Frasers Industrial Properties, you can be sure of success right up until the end. Just contact us via our website or send us a rental enquiry and we'll get in touch with you as soon as possible. We are always up to date with the latest trends and can assist you in locating a suitable factory premise for lease around Bangkok, Ayutthaya, Chonburi, Prachinburi,Pathumthani and Samut Prakan.
If you are unsure whether you'd like to buy a factory instead to have more control and security over the property and reduce additional surcharges, or simply to reap the benefits of increased real estate value, then buying might be the better option for you.
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There are several points to take into consideration when choosing a proper location to rent a factory in Thailand. These Factors are important for the supply chain and logistical processes of your business therefore the next time you are renting a factory, do proper research and evaluate the options you have. This will affect all aspects of your business from branding, employee workflow to your customers' satisfaction. However, in order to make an informed decision, this article will run through the main points to get the best out of your factory rental.
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