The Pros and Cons of Renting and Buying a Warehouse

Many businesses rely on adequate space, especially if it involves a huge volume of stock. A warehouse or factory is a must. Some already have a warehouse, but due to the growing demand for business, an additional factory or warehouse is needed. Here’s the thing; do you really need to buy a new warehouse? Or would it be practical to rent a warehouse?

Renting vs. buying a warehouse or factory in Thailand (เช่าหรือซื้อโกดัง, term in Thai) is a difficult decision given the country’s vast inventory of property for sale and lease.Business owners have more options, especially in terms of location, size, and amenities.

Renting a warehouse

• Renting a warehouse doesn’t require much money when compared to purchasing a warehouse. You don’t need to pay a significant down payment, which means that you, as a business owner, can use the money on other aspects of your business to further grow it.

• The cost of rent is spread out over the course of the lease. You don’t need to pay all at once.

• Warehouse repair and maintenance are usually handled by the property owner. In other words, you, as a business owner, can save money from repairs. You will have spare money to be used for other aspects of business. Not only will you save money, but also time. You know how precious time is in business because time always equates to money.

Buying a warehouse

• Buying a warehouse requires a huge amount of money, especially if the warehouse is big and in a prime location. Even extremely huge businesses can do it. However, small to medium-sized businesses can’t, for the most part. Some businesses have sufficient money at hand, but they would rather use the money in other aspects of business than spend it in the warehouse.

• As a warehouse owner, you will be the one responsible for all the much-needed repairs and maintenance. It can take up not only a portion of your budget, but also a huge portion of your time.

• If the time comes that the business grows tremendously and you need to move to another location, you cannot take the warehouse with you. Chances are, you are going to put it on sale or lease, and let’s admit it, and it’s difficult to find a lessor or a buyer, especially if your warehouse does not meet the specific needs and requirements of your business.

Which is the better option?

Choosing between renting and buying a warehouse or factory is a daunting task. With rental, you are not the owner of the property, but it comes with many perks, such as the ones mentioned above. On the other hand, if you purchase the warehouse, you become the property owner. You can use it later on for whatever purpose you want to. However, you need to shell out a huge amount of money. At the end of the day, it all boils down to your budget, business needs, and personal preferences. You have to think of the greatest good for your business.