One of the most obvious trends that we have seen in the market for commercial units, is the rise in the demand for warehouses. Traditionally, warehouses in the UK have been used mainly for the storage of products, often before or after export. Additionally, warehouse spaces can often be transformed to have other uses – offices added as a business’s base where a mixture of office and warehouse space is needed, for example.
The rise in demand, however, reflects wider changes in the world of business and commerce. For example, we are now seeing businesses looking to buy or rent warehouses to be used as distribution centres, data centres, or activity centres, for example.
In this article, we are going to take a look at the variety of uses for commercial warehouse space that have led to the significant rise in demand for it in the last few years, and some of the factors that you will need to consider if you are looking for one of these units.
Public Storage
A public storage warehouse provides storage space for anybody who wishes to rent some space in it. This is most commonly businesses that rent anything from a small area to the entire warehouse, owned and maintained by a third party. They most commonly use it for storage – archived files and spare office equipment, for example.
Public storage warehouses will normally provide flexibility – generally with round-the-clock access, and sometimes other benefits such as inventory management, delivery options, security, and specific environmental conditions. This can all be very beneficial to businesses – especially smaller ones who do not have the need for an entire space that they would then have to manage themselves.
It does, however, mean that an individual will have less control over their specific requirements (such as climate control or specific access needs).
Some of the main considerations include:
- Location and access
- Services offered by a third-party provider
- Cost
- Amount of space available
- Flexibility of access
Private Warehouse
Private warehouses are entire warehouses that are bought or rented by an individual company for whatever needs they have – storage, distribution centre, manufacturing, etc. The most important factor when you are thinking about renting a commercial warehouse is what you are going to use it for, ensuring that it works in the space and that regulations as well as your contract with the landlord allow you to use the warehouse for what you need it for.
Some businesses, for example, might build in a more secure storage area within the warehouse, or add an office space, build in toilets, or likewise, inside the building. It is essential that this doesn’t break any rules. Likewise, if you are looking at using certain machinery or using the commercial unit as a place to manufacture products, for example, there may be other regulations and laws that must be abided by.
Considerations include:
- Location and access (if important)
- Cost
- Amount of space available
- Viability of the space for what you need it for
Distribution Centre
With the rise in the number of businesses that operate online, we have seen a massive increase in the number of businesses looking for distribution centres. Many businesses are run online (or abroad) and instead of having products near to them which are then sent out, they will have products stored in distribution centres around the country. This means that products can be sent out, arriving to customers quickly and efficiently.
If you are looking for a warehouse to use as a distribution centre, some of the most important factors to consider are:
- Location compared to the source – near ports, airports, or manufacturing facilities
- Location in relation to transport links for delivery
- Cost
- Amount of space available
- Security
- Ensuring that there is access at the times you will need it
Bonded Warehouse
Bonded Warehouses are commercial units that are held by businesses that import a high number of products. They are used to store items that have been imported but crucially have not had import taxes or customs duties paid on them yet. They are essentially a custom-free area, whereby a business can store its items before paying the taxes, thus, helping to ensure that cashflow is not badly affected by importing goods. It can be used if you are still waiting for clearance from customs or are looking to export them back out straight away.
There are two types of bonded warehouses – wet and dry. A ‘dry’ bonded warehouse is used to store goods excluding alcohol and tobacco. And a ‘wet’ bonded warehouse, yes, you guessed it, can!
Some things that you need to think about include:
- Location in relation to the proximity to ports/airports as well as where the goods will then be sent to
- Cost
- Security
- Size and capacity requirements
- Environmental requirements
- Access options
Data Centres
With the enormous increase in demand for cloud storage – thanks to the growth of the internet in everyday life and business, there is also a massive demand for space to store data for the online world. This data is kept in a data centre.
Data centres require huge areas, but they don’t need to be in a particularly good location for transport links – in fact, they are usually better off in areas that are far away from anything else. Many data centres used by the UK are overseas.
For a data centre, some of the considerations include:
- Area
- Location
- Ability to cool
- Capacity for cable feeds
- Security
- Cost
Warehouses are essential for modern Britain to function properly. Whether it is for businesses to store their documents and equipment, store products before they are sent out to customers, manufacturing, enabling the world’s online needs to be met, or a whole host of other uses.
Here at Boxpod we have a range of warehouse commercial units for rent or to buy, or you can also list your commercial unit here to find your ideal tenants. Why not take a look at our website and see how we can help you today?