5 Things you Need to Know When Choosing a Factory for Rent and a Warehouse for Rent in Thailand

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

Quality factories or warehouses for rent can boost the tenant's company image and creditability. Also, quality factories and warehouses for rent can help employees excel by increasing pride in their work and efficiency. However, when finding a fine rental warehouse or factory, you must consider many aspects to best fit your business needs. Today, we have gathered five things you must consider when choosing a factory or warehouse for rent in Thailand.


1. Principles for considering the selection of factories for rent and warehouses for rent

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

The starting point is finding a rental warehouse or factory for your business needs. The nature of your business operations and transportation means is one of the most vital factors when selecting your rental warehouse or factory.   Convenience in moving products in and out of the warehouse and a proper fit for your business operations are essential when choosing your rental warehouse and factory.

The size of the rental warehouse and factory is also essential. It would help if you made some preliminary calculations for your current and future business uses. Since each factory or warehouse relocation is costly, correctly selecting the right property size is very important. When evaluating the appropriate rental warehouse size, you should allow sufficient space to support your future business demands in line with your future production lines.

In addition, you cannot overlook the location of the warehouse for rent. Your rental factory or warehouse should ideally be close to principal transport means, such as seaports, major roads, expressways, and airports. This benefit would help ship your products to customers faster and cheaper. The rental warehouse or factory should also be away from natural disaster-prone areas. It will help if you avoid sites that consistently flood. Samutprakarn is an area that is flood free. If you would like to know more about flooding areas in Thailand, please click on the link to read our article on flooding: 

Also, the rental warehouse and factory should equip with complete infrastructure and communication systems- an appropriate water supply system, electrical system, telephone, and high-speed internet.


2. Things to consider when finding the right warehouse or factory for rent

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

Suppose you have already found a few potential warehouses or factories for rent. In that case, the next important thing to consider is: evaluating their properties. You should examine the rental warehouses' built years, civil structures, weight capacity, area sizes, and building heights. These characteristics are the factors that can determine the suitability of the warehouse or factory for rent. 

Also, you have to consider the outside characteristics of the rental warehouse or factory. Roads, loading areas, parking areas, security systems, and fire-prevention mechanisms are some of the external factors you should consider when evaluating.

You should also assess transportation routes, ease of commute for you and your worker, staff accommodations, and eating spots as parts of your evaluation criteria. Careful consideration of these vital factors will help the business to become more sustainable and prevent future problems.


3. Factory lease agreement and warehouse lease agreement

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

After finding your desired warehouse for rent, you need to consider the local laws governing the business activities in your rental warehouse locates. In Thailand, the town-planning laws would dictate the nature of your business operations. For example, certain factories are only allowed in specific area zones. 

Another legal aspect of your consideration is the details of the lease agreement. For example, the lease term should specify the landlord's responsibility if property damages occur before your lease agreement begins. Your warehouse lease agreement terms should outline which party's responsibilities for maintenance, repairs, and property taxes. Carefully evaluating these terms can benefit your business since Thailand's warehouse or factory lease contracts are usually between 3-6 years or more.

You can read more information about the lease agreement in the article 8 Things to Consider in a Factory and Warehouse Rental Contract in Thailand. Click!


4. Other expenses that may arise.

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

In addition to the rental rate, you should consider other expenses related to the rental. Whether it is tax expenses, costs related to land and building taxes, common fees, or utility surcharges, you must consider these expenses in your evaluation. Some landlords may incur additional parking costs, repairs, and property insurance premiums on top of the rent. It would help if you considered these costs when making a sound rental decision to obtain a suitable factory or warehouse for rent.

You can also read more on Thailand's taxes related to your rental factory and warehouse by reading: 4 Taxes Related to Factory and Warehouse Rental in Thailand. Click!


5. Other factors you need to look at when choosing a warehouse or factory for rent

5 things you need to know when choosing a factory for rent and a warehouse for rent in Thailand

The creditability of the landlord is also vital when considering renting a warehouse or factory. Currently, many scammers seek to get the tenants' deposits and advance rent payments. The scammers can impersonate the owner of the leased property to deceive the deposit. Therefore, you should carefully check the ownership of the leased property.

Your rental contract should cover the unique situations which may arise. For example, your rental agreement should cover the terms of natural disasters, penalties for late payments, and eviction clauses. If you are unfamiliar with Thai industrial rental contracts, it would be incredibly beneficial to seek help from professionals. These terms can help prevent future conflicts and problems.

If you wish to know more about the rental scams in Thailand, please click on the link to read: 5 Typical Scams in Factory and Warehouse Rentals. Click!


In summary, we have outlined the main factors you should consider when searching for a factory or warehouse for rent. We have listed the suitability of the rental warehouse, its location, transportation means, unit size, and warehouse functionalities as your top considerations. Also, you need to evaluate the readiness of utilities-water, electricity, and internet, surrounding communities, rental rates, and related expenses. These factors can help ensure the suitability of your selected factory or warehouse for rent for your business. A good factory or warehouse for rent can help facilitate your long-term business growth.











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