6 Factors in Choosing an Ideal Rental Factory or Warehouse for Your Business.

6 Factors in Choosing an Ideal Rental Factory or Warehouse for Your Business.

6 Factors in Choosing an Ideal Rental Factory or Warehouse for Your Business.

We present six vital factors in determining the right factory or warehouse for your business.

Picking the appropriate premises will make a difference in your business. Your rental property would have a substantial impact on your business outcomes, from the efficiency of your operations to the profitability of the business. Whether building your factory and warehouse or renting a property, selecting the right place will help your company meet the needs of customers more effectively. Therefore, we have presented six methods, which can guide you to find the right property.


6 factors in selecting a good factory or warehouse.

1. Rent

Rent is the first and foremost important factor that we have to consider. It is of tantamount significance that you consider all the costs involved in the lease because sometimes there are other hidden costs besides the rent. For example, some landlords may charge for the common fees, utility surcharges, or outdoor areas. The low rental price may contain other hidden costs. It would be best if you weigh all these factors into account.

Generally, the property owner would quote the rental fee based on the property's square meters. The rate per square meter would depend on the location, the age of the property as well as prices quoted in nearby projects. In addition to the rent, rental factories nad warehouses in industrial estates, free trade zones, and large warehousing projects, the developers would add other additional costs on top of the rent. The common fees, water and electricity surcharges, waste disposal charges, and the owners would add these other charges toward your final rental amount. Thus, it would help if you intelligently evaluated all these factors when deciding on the location of your factory or warehouse.

2. Supply of skilled labor and wages

The skills of workers and salaries depend on the population of that area. For factory and warehouse purposes, the most qualified staff are usually in specific regions, namely in industrially-concentrated provinces. Therefore, when setting up your factory or warehouse, it is critical to concentrate on the location, in which you are most likely to recruit talented workers at the most reasonable price.

In some regions, although the skill levels are relatively low, the wages are still high due to high employment demands. The Thai unemployment rate in 2020 is as low as 1.1%. Please refer to the link here for further information: https://www.ceicdata.com/en/indicator/thailand/unemployment-rate.)

Because of the high demand for labor, wages, and other forms of compensation inevitably increase, and consequently, this will raise production costs. Also, another challenge from the low unemployment rate is the skill gap in the workforce. Companies have to have a skillful workforce that can meet the demands of customers while managing labor costs. Otherwise, the quality standards of your products and services may be lower. Therefore, when choosing a factory or a warehouse location, a place that has enough quality labor at reasonable rates is indispensable to the company's success.

3. Roads, expressways and transportation

6 Factors in Choosing an Ideal Rental Factory or Warehouse for Your Business.

The prime location for your factory or warehouse should have excellent transport access, which is well connected to major roads, highways, and other transport means, whether sea, rail, or air, depending on your business. Thus, we present that well-connected transport access is another major factor in your company's success. The site location would have direct effects on business logistics methods and costs.

  • When you evaluate the options, you may consider the following factors:
  • Does it have easy access to the expressway?
  • Which part of the expressway is it connected?
  • Is public transport available in the area? (This point is especially significant to your staff.)
  • What is the average traffic speed? Is the area heavily congested?
  • What is the average traffic density?
  • How is the traffic during rush hours?
  • How are the conditions of nearby roads? Are they relatively well maintains? Can they handle heavy trucks?
  • For road safety, are there suitable road signs and warning signs?

If the road conditions are quite poor, transportation may take longer than necessary, and you may waste away avoidable costs, such as fuels consumptions, time, and accidents.

4. Located near the airport, train stations and seaports

6 Factors in Choosing an Ideal Rental Factory or Warehouse for Your Business.

For the evaluation of a rental factory or a warehouse, another contributing factor would be your business' dependence on imports and exports. The distribution channels of import-export raw materials and goods would determine your factory or warehouse location. For example, if your business relies heavily on imports through air cargos, then it is probable to pick your rental the airport. However, if your business import your raw materials and exports your finished products through rail networks, then your site should be near a train station. Finally, for ocean freight business, you should decide on factories and warehouses for rent near seaports. Your chosen property can have significant impacts on your costs and transportation time.

5. The local market and its environment

In the business environment, suppliers, manufacturers, and markets are critical determinants in businesses' success. Your chosen rental factory or warehouse should be near the manufacturers or your most notable customer to help reduce transportation time and costs. Besides, it would help if you considered the local environmental factors, such as weather and the risk of natural disasters. You would also find it helpful when you appraise whether there is any risk of earthquakes, floods, and other natural disasters. Other conditions, such as land, traffic conditions, and the neighborhood, should be taken into account.

6. Property's Ability for Future Expansion and Modification as well as Utility Expenses

6 Factors in Choosing an Ideal Rental Factory or Warehouse for Your Business.

When your business prospers, moving to a new location should be the last resort. Since relocation costs, machine relocations, new logistical, and distribution modules for your materials and products, recruiting new staff, are only a few of the many critical problems that you have to face. Therefore, we suggest you should search for a new factory only when your current location can no longer support your expansion.

An ideal rental factory or warehouse should give you ample room to accommodate your future expansions. It should be flexible enough to optimistically suit the growth as well as contractions of your business. You should evaluate the available properties on a long-term basis, whether your chosen factory or warehouse fits your subsequent business plan.

Finally, utility rates, namely electricity, water, and the Internet, will also help correct judge your costs. It would help if you discussed the prices with the property's owner before finalizing your decisions.

In sum, great factory and warehouse locations will profoundly affect your business success. Therefore, before on a rental factory, we provide our contributing factors that should help you with your decision. These factors assist you in finding the most suitable rental factory and warehouse for your business.


If you are interested in renting a high-quality factory or warehouse in Thailand, please feel free to contact us anytime. Our projects are in an excellent location near Suvarnabhumi Airport, Burapha Withi Expressway, and the Motorway. Our tenants enjoy free repair services throughout the rental contracts. Also, we have a superb customer service team, who will help up with all essential issues, such as documents and license applications, factory modifications, machine placements, and utility applications. Our units are in high-security projects with 24-hour security guards and CCTV systems. Contact us for more information. Or, please follow the link below for further details.


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