In recent years, companies' average space requirements have skyrocketed due to the dramatic rise of e-commerce logistics and the burgeoning warehousing market in India. Expanding businesses have three options when looking for a new facility: they can acquire some acres of land and then erect a facility on their own; lease or purchase an existing warehouse and make necessary renovations, or collaborate with a developer to construct a new facility. Today, in this blog we will be laying our focus on the third category, i.e., built-to-suit warehouses. Read on to know more about its meaning, significance, benefits and why there is an increase demand for built-to-suit warehouse in Jharkhand and other major states in India. What is a built-to-suit warehouse? In layman's terms, a built-to-suit warehouse is a property that is tailored specifically to meet the demands and specifications of an end-user like a tenant, occupier, or buyer. A built-to-suit warehouse is constructed based on a pre-lease agreement that takes place between the developer and the occupier. The tenant specifies the requirements and preferences, after which the developer shares his/her designs that match the clients’ specifications. Following the client's approval, the warehouse construction process gets underway. Why is a built-to-suit warehouse important? Businesses increasingly encounter logistical bottlenecks and challenges that call for dynamism and flexibility in their warehouses. Moreover, the requirements of the tenants may vary with respect to size or height. A build-to-suit property appeals particularly to entrepreneurs, whose warehouse space needs are quite specific. In the event that no warehouse space exists that suits the requirements of the company, build-to-suit development is the best option. What are the benefits of a built-to-suit warehouse? Freedom of choice of location - This advantage serves as one of the key reasons for choosing a built-to-suit warehouse. Nonetheless, if the location selected by the tenant is not part of the developer's land portfolio and is not one of the developers' preferred locations, the lease term for such a construction will be at least 10 years. In addition, the building surface area must exceed 10,000 square meters. Due to limited demand for warehouse space and industrial space in certain locations, the construction of buildings must be profitable for the developer during the lease term. Rents are therefore generally quite high. Flexibility in terms of size of industrial space - To reduce investment and maintenance costs, businesses decide to use BTS rather than buy a plot of land and constuct a building. The reason is that it is cheaper to maintain BTS properties with customized solutions that are tailored to the customer's needs and industry. Synchronization of technologies - As the expectation of same-day delivery continues to grow, it is more important than ever before to update the facilities to meet global requirements. Consequently, many BTS warehouses typically use semi- or fully automatic racking systems and robotics for picking and storing products with the main objective of fulfilling the needs of individual clients. Final words
The developer's rules and policies must be known before hiring any built-to-suit warehouse company. If you are seeking a built-to-suit warehouse in Jharkhand, then you can get in touch with Warehousewale, Mamoon Warehouse Solutions, or StoreFresh. They specialize in creating customized warehouses for each customer simply by understanding their specifications; floor plans; parking area; and other requirements.
2 Comments
9/14/2022 09:56:47 am
Thank you for your sound advice and tips. Really appriciable and useful post!
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9/22/2022 09:52:49 am
I love this blog. I don’t know what I’d do without you and your great info! Thank you so much!
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