Warehouse sale in Abu Dhabi is expected to hold this year despite the economic slowdown, as new supply plugs a gap in the market. The shortage of proper quality warehouses has led to the expansion of existing warehouse projects.
This article will point out why investing in a warehouse represents the best alternative to the luxury market. It is important because one needs to know how efficient and profit-making the investment will be.
Before the selection process for the location of the warehouse, it is essential to find out all the details of the property, document them, analyze them and compare them side by side with all other available options. After thinking through and analyzing everything one can be able to come up with a proper decision.
Below are five criteria’s that need to be kept in mind while selecting a warehouse location.
- Taxes and Rent: The primary factor to keep in mind when it comes to selecting a right location for a warehouse is the cost and the budget. While keeping in mind the rate, we also need to keep in mind how the tax structure of that area is and if any incentives need to be paid and also government programmes that help to promote the industries could be kept under consideration as well.
- Roads and traffic flow: It is essential to keep a lookout for the availability of proper roads and highway which is the primary concern when it comes to transportation. This is important because an adequate functioning for warehouse is handicapped without its trucks and vehicles that will help in the transportation of goods and services.
- Markets & Local Environment Factors: It automatically becomes more comfortable and time-saving if the suppliers and local markets are near and it should be kept in mind before purchasing a location for a warehouse. The area of the warehouse should be near suppliers, markets, and consumers so that it can reduce the cost of transport and give easier access to customers as well. As far as the local environment is concerned, it is important to check if the area is prone to any natural disasters or calamities so the correct precautions and insurance can be taken.
- Proximity to airports, ports, and stations: In case the goods in the warehouse need to be sent to a location that is unreachable by modes of cars and trucks, it is important to have airports, ports or stations nearby. If not, then one should quickly explore facilities that will help them send their cargos quicker to the airport or stations. It is probably for the best to be as close as possible to the most predominant transportation to control the drayage costs.
- Utilities: There needs to be a way of double checking utility depending upon the needs of the warehouse, for example, a refrigerated warehouse will need more water supply and electricity. One significant and important efficiency that most people overlook is internet services and if the building is adequately wired for such amenities. In this day and age, the internet is so vital, and people need to be connected and aware of all the things that are happening around. It helps in the growth of clientele and advertising the warehouse and its services.
It is crucial to understand and analyze the needs of the warehouse so that it can be built with a proper strategy and proper planning. The result of a right warehouse will only result in profit and better business. Hence before purchasing one, it is important to see that all the boxes for the needs and wants of the warehouse are ticked.
When looking at investing in Warehouses, consider the below factors:
- Flexibility: The versatile nature of a warehouse is that it can easily be converted into a showroom or a retail space, or be used as an office space. Manufacturers have the liberty to transform their warehouses into a production base for their goods or to sell their inventories. The great thing about a warehouse is that it can have multiple purposes and can be modified according to one’s needs and wishes.
- Stability: Nowadays there’s a continuous need for storage spaces, the volume of transactions in storage spaces are an all-time high, the rental price index has maintained a balance between both the investors and the manufacturers. The price range depends on the natural environment and the area where it is situated. The need for storage spaces in Abu Dhabi has increased and is in high demand. Hence the price has also increased for both renting and purchasing. But even though the rate improves the balance between the buyers and sellers on reasonable levels.
- Multiple Sectors: One of the leading industries especially in Abu Dhabi is the food and beverage industry, and that leads to the increasing demand for warehouses. This sector experienced a wave of growth mainly because of increasing numbers of population and the ever growing flow of tourists. The main reason to choose to build warehouses in Abu Dhabi as the place for flourishing wholesale and retail trade is that of its incredible infrastructural benefits, services rendered by the government, and facilities available at all ports and airports. And of course, the industrial trade is becoming a vital reason for the importance of warehouses. Because of this, the government is also providing its support in the emergence of warehouses.
- Easily accessible: If the warehouse is situated near the place of work then it is more comfortable and more accessible for a smooth running of daily business transactions. It helps to minimize costs and offers the convenience to move the goods efficiently.
Warehouses are extremely important these days, and hence it’s even more crucial that we fully understand all the complications that come with it before we commit to an investment like that. It is a lot of hard work that needs proper analyzing, ethical decision making and sufficient budget. Hence before coming up with a warehouse or scouting locations for one, one should properly research and document everything that is necessary.