A warehouse in India is a significant part in this competitive world of business, which is aimed towards escalating the turnover of the sales and profits in a short amount of time. Warehouses also provide a number of other services that include such as receiving the goods, proper storage of the goods, picking those items and then shipping or transporting those goods to the decided location.
Until these items are dispatched, ready to be sold to the consumers, a warehouse stores and preserves these goods. There is also usually, a time gap between the production of the goods and their consumption, and by bridging this gap, time utility is created by storage.
Industrial real estate in India is actually an area, which is always in constant motion, with new and improved players, coming into the playfield. Companies are always in need of storing their goods, especially having bulk items, so that they can be made available as and when the need arises.
Investment in industrial real estate is always a good thing to consider, since warehouses and logistics parks can be really profitable, if used correctly. One can use a warehouse for storing, for different events, and even rent it out to other parties.
Now, in today's unstable economy, buying a warehouse space in Pune, Chennai or metro cities like Delhi, has become quite difficult. The maintenance and other costs that come with owning a warehouse, can take a toll on the company. Also, matters like expansion can be difficult, if an organization owns a warehouse.
That is why, there is a new method for businesses to store and preserve their goods and that is to take manufacturing space for lease. Renting a warehouse is not only easier on the budget, but also allows a company, to have several warehouses in multiple cities.
However, there is a procedure, that one should follow, should they want a good warehouse with the proper legalities and still be safe from any frauds.
Here are a few tips, that an organization should follow, before signing a lease:
1. Find the Industrial Space:
Finding ample warehouses in India, is not that difficult, as one can easily find warehouse space in Delhi, Chennai and other states too. There are also agencies like IndoSpace and more, that can help a company to find suitable warehouses or manufacturing space.
But, before selecting on any one, the company should do a thorough check online, going through the many websites that lists such type of properties. There are also different types of industrial spaces, so one should also decide on what type of space the company wants. Search online, and give a visit to multiple properties, before settling on one.
2. Evaluate the Terms of the Lease:
Some companies also take the services of a professional industrial real estate developer, to find a good space. But, the real work is found after the company has selected on a space. The paperwork and evaluation of the terms in the lease, is both important and at the same time can be tedious.
Since a warehouse hold a principal part in the proper management of supply chain in India, an organization has to make sure, that they are not duped by their landlord. That is why, a company must go through the whole contract, ask about any hidden expenses, know the rental obligations, and also do a good background check on the potential landlord.
3. The Negotiation of the Lease Agreement:
Once the selection for a warehouse space in Chennai, Delhi or Pune has been done, then negotiating the terms of the lese agreement is the last step. After proper evaluation of the terms, the last step is to negotiate on those terms to best protect and benefit the company. That is why, releasing a pro forma lease copy, asking the landlord for any concessions, and for any add- on clauses is of great import. Also, it is advisable, that one hire an attorney, to go through the legal paperwork.