Advantages of Renting a Factory or a Warehouse
03 February 2022
When business owners and entrepreneurs look to expanding their business operations, one of the biggest challenges is finding an appropriate factory or warehouse that can support and encourage future success.
Another problem that business owners deal with is whether or not they should rent the factory / warehouse, or go ahead and build it themselves.
In this article, we're going to take a closer look at the various pros of renting a factory or warehouse, for your convenience.
By the end of this article you should have a thorough understanding of the advantages and be able to make an informed decision as to which course of action will be best for you and your business.
More available capital
One major benefit of renting a factory and warehouse rather than building them, is the flexibility you gain with capital allocation. You see, when you invest in renting a factory or warehouse, it is significantly lower than having them built instead. With all of this extra capital available to you, you can allocate your money more wisely on things like greater inventory, new machinery, or indeed expanding your business operations.
Tax deductions
As the old adage goes: “there are two certainties in life: death and taxes”. Like it or not, tax is something that we all have to contend with but renting a factory and warehouse can certainly soften the blow. In fact, many business owners don’t realise that renting can actually offer a huge tax benefit. This is a fully tax-deductible expense and well-worth exploring further.
Of course, when buying or owning properties, you can only record your expenses through the building’s depreciation costs. That, and some additional costs such as the land purchase or land filling are unable to be reflected in your business expenses and are thus non-tax-deductible.
Save on repairs and maintenance costs
When you rent a factory or warehouse from a reputable company like Frasers Industrial, you can enjoy regular repair and maintenance services. With these services you do not have to worry about repairs and maintenance yourself and can instead rely on our expert staff to focus on the upkeep for you.
Not only can these additional services save you money, but time as well. When you own a building outright you are solely responsible for its upkeep – when renting however, the burden falls to us and not you.
More precious time
When you own a factory or warehouse, business owners will invariably encounter a wide variety of issues such as:
- Finding the perfect plot of land
- Obtaining all of the necessary planning permissions and construction licenses
- Generating architectural drawings and designs
- Finding suitable contractors to assist with construction
- Monitoring the construction process
- Applying for all of the necessary utilities
- Having technicians repair and maintain your facilities
- And so much more
These are exhausting and time-consuming problems that you will never need to worry about when renting a factory or warehouse with Frasers Industrial. All of our factories and warehouses are already build in strategic locations so you can simply pick a set-up that suits you and get to work!
Greater flexibility to move and expand
As your business continues to grow, a few years down the line your factory or warehouse may no longer be suitable for you. If you own the property outright, then you’ll be in a less desirable position as you will need to find a new buyer and deal with all manner of red-tape and legislation.
If, however, you are renting a warehouse or factory, this offers you far more flexibility when handling your future expansions – allowing you to respond to changing demands as and when they arise.
Plenty of choice and variety
When you rent a factory or warehouse you get a choose from a wide variety of existing locations, each with their own strategic advantages. Similarly, a pre-made factory or warehouse may be suitable for your needs, or tailored to meet them with additional fixtures and the installation of new machinery.
Hit the ground running (less start-up time)
Another great advantage to renting a factory or warehouse is that you can simply hit the ground running, rather than having to wait for a construction project to get the green light and see it through to completion. If you want to continue or kick-start your operations as quickly as possible, renting allows you to do so with less start-up time.
Less red-tape and paperwork
Constructing your own warehouse or factory requires a lot of paperwork, permits, registration, and red-tape that can be avoided by simply renting an existing pre-made property. If you’d prefer not to have to worry about setting up applications and utilities such as water, plumbing, and electricity, then renting is almost certainly the more convenient option. Instead, you can dedicate your time and brain-power to simply getting started, rather than all of the bureaucracy that goes with starting from scratch.
Conclusion
And there we have it! Certainly, there are some benefits to owning your own factory or warehouse space but ultimately, renting from an established and reputable company like Frasers International can save you an awful lot of time, money, and energy.
If you would like to explore our services and available properties further, then please do not hesitate to contact us today. We are always happy to help!
Shared
View more in blog
Difference between a Data Center and a Data Warehouse
Learn the key differences between a data center and a data warehouse. Understand their unique purposes, architecture, and how each supports data storage, management, and analysis in businesses. Find out which solution best fits your organizational needs for secure storage and efficient data processing.
Renting Factories and Warehouses in Today's Economic Climate
Explore the benefits and challenges of renting factories and warehouses in today's fluctuating economy. Learn how businesses can adapt to current market trends, optimize operational costs, and secure flexible industrial spaces for growth.
Thai's Rating of Energy and Environmental Sustainability for New Construction
B2.9/2 PLOT P25 PIN1
Key Considerations for Short-Term vs. Long-Term Warehouse Rentals
Explore the key considerations when choosing between short-term and long-term warehouse rentals. Learn the benefits, costs, and factors to help you decide the best option for your business storage needs.
Cross-Docking: Benefits and Implementation Strategies
Discover the advantages of cross-docking for your logistics operations. Learn how to reduce storage costs, improve delivery speeds, and streamline your supply chain.
Thai's Rating of Energy and Environmental Sustainability for New Construction
AMN-M1.7 Plot G702/20 (Ready-built Factory
Logistics and Connectivity: The Strategic Advantages of Chonburi’s Industrial Estates
Strategically nestled in the heart of Southeast Asia, Chonburi's industrial estates boast unparalleled logistics and connectivity. They're a magnet for businesses looking to tap into dynamic markets. With state-of-the-art infrastructure, these hubs are transforming the landscape of regional trade.
Bangkok Warehousing 2024: Adapt to Evolving Market Needs
Bangkok's warehousing market is undergoing a transformation as dynamic as the city itself. In 2024, the landscape is defined by rapid technological advancements and shifting economic currents. Businesses are finding that staying ahead means adapting quickly to these changes.
Sustainable Practices for Modern Warehouses
In today's eco-conscious market, sustainability isn't just a buzzword—it's a business imperative. Modern warehouses are at the forefront of this shift, adopting practices that reduce environmental impact while boosting efficiency. They're proving that going green can mean more than just saving the planet; it can save on costs, too.
Everything You Need to Know About Getting a Factory License in Thailand
On October 27th, the Factory Act came into effect, creating adjustments to aid factories in becoming more comfortable and adaptable in the market. According to this new act, a factory is define as a building, place, or vehicle with at least 50 employees or machinery with a total power of 50 horsepower or more. This marks a major change from the 1992 Factory Act, which set the criteria for 5-20 horsepower and/or 7-20 employees.
How Smart Warehouses are Using IoT Devices
The world is changing, and the internet of things is at the forefront of this change. Businesses of all types are beginning to adopt IoT (Internet of Things) technology in order to improve efficiency and bottom lines.
5 Factors to consider when choosing a location to rent a Factory
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.
Factory for rent in Chonburi – Pros & Cons
Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.
Warehouse and Warehousing - what is the difference?
Warehouses are associated with storing goods. Many businesses use these facilities to store their products, such as raw materials, packing materials, components, or unfinished goods until they are ready to be shipped to the distributor or manufacturer where it turns into finished goods.
Warehouse for Rent in Chonburi – Pros & Cons
Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.
8 Tips When Looking for Warehouse Space
If you are a business owner looking for a new warehouse space, it is paramount that you know exactly what you need before starting your search. First, you must do plenty of research and put together a solid plan of action. That way, when you do start looking at prospective warehouses, you can save time by instantly recognising which units are unfit to accommodate you, and which units should immediately be added to your shortlist of potentials.
Built-To-Suit Warehouses are on the Rise, why Purpose built Warehouses and Factories make sense for Businesses
As e-commerce demand continues to grow, built-to-suit warehouses are becoming more and more popular. But what is a built-to-suit warehouse and why are they so valuable for e-commerce retailers and logistics companies alike? In this article, we’ll tell you everything you need to know!
A Guide to Cold Storage Warehousing
Cold storage and transportation is what makes it possible to send fresh foods and medicine all over the world without the risk of unnecessary storage. If you’ve ever wondered how your favourite ice creams gets delivered to your local shop – that’s how!
How AI and Automation Are Impacting Warehousing in Thailand
The impact of AI in warehouse automation has been revolutionary as it is leveraged across multiple multiple applications such as robotics, computer vision, and language processing tools to streamline warehouse operations. In this article, we’re going to look at how AI and automation are impacting warehousing in Thailand, and what it means for the future
Buying or Renting a Factory – Which is best?
There are a number of important factors to consider when you are trying to decide whether buying or renting a factory is the best move for your business. In this article we’re going to explore these factors, ask some important questions, and try to determine which would be the best option for you. Read on to find out more.
Why Warehouses in Asia are on the rise in 2022
Warehouses are in high-demand all across the world at the moment and in 2022 we’re only going to see that popularity rise even higher. But why is that? What’s with all of the hype and desire for warehouses right now? In essence, businesses (especially retailers) are running out of room to hold all of the items that we are ordering online.
Advantages of Renting a Factory or a Warehouse
When business owners and entrepreneurs look to expanding their business operations, one of the biggest challenges is finding an appropriate factory or warehouse that can support and encourage future success.
Good Manufacturing Practice (GMP) – What it is, what it covers and what the benefit are
In this article, we are going to explore GMP (good manufacturing practice), and what benefits it can bring to your business. As with any industry, in order to experience the highest levels of success, one must adopt the best practices in everything that you do, whether it be manufacturing, customer service, or hospitality. By gaining a thorough understanding of these ‘good practices’, you can optimize your business to function at peak performance, increase profits, and bolster your brand reputation. Let’s get stuck in!
Supply Chain Challenges and how a Warehouse can take your business Forwards
There have always been challenges in the supply chain, and what with the COVID-19 pandemic, many of these issues have been exacerbated. In any case, as business owners are faced with new challenges it encourages innovation—which leads to some surprising ways to overcome said challenges. One thing that can really help drive your business forward and combat a number of supply chain issues is by investing in the appropriate warehousing. But, before we get into that, let’s look at some of the biggest problems faced and what might be done to combat them.
Factory Rentals in Thailand - All you need to know
Are you looking for factory rentals in Thailand? If so, then you may be feeling a little overwhelmed at the task; trying to find the ideal premises in a strategic location, and for the right price. But don't panic! It's not as difficult as you might think, particularly when you do your research.
Warehouses in Thailand – What you need to know.
Whether you are a new business owner looking to expand, or you are long-established and simply need to upgrade, having a warehouse comes with a great number of benefits. As someone who is unfamiliar with warehouses or is perhaps looking at them for the first time, then you’ll need to plan your approach with careful consideration.
Warehouse Security and our approach to Dangerous Goods Warehousing
A large explosion and fire destroyed the Ming Dih Chemical factory compound that had been producing plastic foam and pellets in Tambon, Rachatewa, causing extensive damage to the surrounding communities, earlier this month in July 2021.