Of course, if you have just opened and purchased small quantities of goods for the first time, a warehouse may not be needed. However, if you think ahead and strive to develop and scale up your business, it becomes clear that without a warehouse, you will not get anywhere. It is now all your goods fit into one room, and then what will happen? And even more so the warehouse is needed by those who sell large-sized goods: household appliances, furniture, motorcycle and bicycle equipment, as well as goods that require special storage conditions. For example, food or medicine that can deteriorate.
The main advantage of investing in a warehouse is the potential profitability, which is very high, around 10%.
Dynamic profitability: The concept of occupancy rate
The concept of occupancy rate is strategic because many industrial or industrial areas are deserted, generally because the demands of tenants are too low compared to the market price. Economic conditions have driven down the price of rents. Some homeowners have not yet integrated them into their rental forecasts, which blocks the market, as no tenant is willing to pay the asking price. The occupancy rate of a given area may then be low.
Location and impact on profitability
Location is the key indicator when looking at the issue of profitability because it depends on the rate of occupancy that will be more or less important. Indeed, if the occupancy rate is low, the rental value of warehouses for rent in India forecasts will have to be adjusted downwards to hope to find a tenant.
Important note: A warehouse that remains empty necessarily has a rental value problem. Premises at the market price will necessarily be rented in a suitable time.
A lesser constraint for the owner
- In the case of warehouses, it is necessary to take into account the depreciation of the property. On the other hand, it is the tenant to ensure the maintenance of the closed and the cover.
- It is therefore important to consider the quality of buildings and have a risk approach specific to buildings.
- It is important to have a precise analysis of the costs related to the building in medium and long term
- It is not rare to have problems of soundproofing or thermal insulation. The generally metallic structure requires very high maintenance costs, which reduce the long-term profitability.
- In terms of urban planning, the constraints are minimalist, which gives great freedom for all major developments.
Management
These investments are often very profitable, but their constraint is the need to have the administrative and technical know-how to manage them.
In addition, the presence of a warehouse for rent in Noida will give you an advantage over competitors:
- Guarantees the availability of goods at any time- this is especially true for seasonal products, sales days, holidays when demand exceeds supply;
- Provide fast delivery- from the warehouse to bring the goods much easier and faster than from the supplier;
- Saves money- you can take wholesale lots, for which, as you know, many suppliers offer lower prices. So, you can afford to lower prices, give customers discounts.