Find, Inspect and Lease the best Warehouse for your Business

Tenant Leasing Group (TLG) is a commercial property advisory specialised in sourcing and lease negotiation for Warehouse (3,000sqm +), Head Office, and Multi-Site Retail in Australia and New Zealand.

In this edition of How To Lease Good (#HowTLG ) we explore how to locate and secure the best warehouse deal, and consider the below:

• How to find a warehouse to rent near you
• Lease a bonded warehouse for your supply chain
• Negotiate the terms of your industrial property lease agreement

To find the right warehouse site to lease, you first need to know that it matches your requirements. Here are some of the big questions you may want to consider asking, to make sure you get the lease you need.

Size

How big: many square metres (sqm) do you think you need?

How do you know: what are these calculations based on?

Contingency: does this site account for inventory and excess stock, or future commercial expansion?

Have you considered sub-leasing? Or of having the ability to sub-lease part of your warehouse depending on future requirements?

Location

Suburbs: which regions or postcodes are you looking in – are they metropolitan or regional?

Proximity to logistical nodes: do you need to be close to airports, train stations, arterial roads, CBD, or other logistical nodes?

Proximity to services: residential, commercial catchments or specific services? For example, scaled logistics infrastructure, food & beverage, transporation, recreation?

Would you consider other options? Other sites, other areas, or other parts of the area? Relocation can be profitable – check out this example from our client Koala in Sydney.

Zoning and Premises type

Does the the site need to be single or mixed-use?

For example, is it 100% industrial usage you require permission for, or do you also need usage as an office, or recreation space? What ratio of office to industrial space do you need?

What license do you require?

All private and general warehouses that are to store excise equivalent goods (EEG), either solely or in addition to other goods, must be licensed by the Australian Taxation Office (ATO)

Do you know the legal zoning status of your shortlisted sites?

Are you in communication with the lessor?

As well as securing a pre-committment from a local developer, when we worked with climbing gym business BlocHaus Bouldering, we ensured that zoning on their industrial site in Canberra allowed for recerational use – a sticking point of the deal.

Clearance

• What is the maximum clearance height you could require in your warehouse?5, 7, 11 metres? How do you know?
• Does it have to be open-plan?

Access

• Does the site need to be on the ground floor?
• What types of vehicles need to be able to access the site?
• Are there customer access requirements?

Warehouse site attributes

Power: how many AMPS does your operation require? Will you need to upgrade to cater for growth?

A case study in this vein is our project sourcing and negotiating a lease deal for Culture Kings’ 3,700sqm distribution centre and screen-printing facility at Villawood Logistics Estate . As part of the deal, 3 phase power was upgraded from 250 amps to 1,000amps.

Other site features to consider:

• Ventilation and plumbing
• Lighting
• Hydraulic systems and specialist industrial machinery
• Roller doors, fencing, lifts
• Car parking, for staff or customers?
• Surveillance and security

Amenities

Bathrooms: do you need bathrooms on site (and do they need to be accessible)? What about end of trip facilities?

Kitchen: will you need one, or more? Wet or dry?

Office: do you require space for an office?

Partitions: will you need separate internal spaces for different activities?

Fixtures and fit-out

• Should the site be empty, furnished or plug and play?
• Do you need a bespoke fit-out?

Good warehouse site sourcing begins when you know what you need.

Not clear on all your requirements? You’re not alone.?Get in touch.

When you are clear on what your business needs, you can conduct a more accurate and thorough search of the suitable and available warehouse sites for lease on the market.

You may need a warehouse for storage, blending, unpacking, repacking and packaging of certain types of goods. It may act as a distribution centre, returns house, or some other fulfilment operation.

Depending on the types of goods you sell, you may need a customs warehouse license (sometimes referred to in the industry as a “bonded warehouse”).

The next step is creating and culling your short-list of sites. And then most importantly – negotiating your rent and lease terms with the lessor. This is where cost savings and sustainability are decided.

Hopefully this article gives you some food for thought when looking at leasing a warehouse for your business – eCommerce, retail, entertainment, or otherwise.

Phil’s calm style of negotiation has consistently got us optimal commercial results… His experience is invaluable to us.

How TLG can help your business find and negotiate the right warehouse site

Tenant Leasing Group (TLG) bring over half a century of combined experience in retail and industrial property – we specialise in finding and negotiating the best warehouse leases for growing retailers and other businesses. TLG:

• Leverage relationships with agents
• Access extensive property data
• Know about opportunities that may currently be ‘off-market’

We have the access, partners and networks to help get the job done. Appointing industry professionals from the start of your journey can save time and money.

Tenant Leasing Group (TLG) is a commercial property advisory specialised in sourcing and lease negotiation for Warehouses (3,000+ sqm), Head Offices and Multi-Site Retail.

Impeccable service with an entrepreneurial spirit. Trusted for 50+ years' across Australia & New Zealand.

We do property so you can do business growth.

tl-group.com.au

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