Selecting a Vietnam warehouse for rent that meets the needs of industrial businesses is a vital decision for any owner to consider because it affects production and business processes, as well as the business’s budget. If you are thinking about leasing warehouse space, you need to examine many aspects.
The following article from Savills Industrial will provide you with the most precise information about warehouses for rent in Vietnam.
Factors you Need to Consider when choosing a Vietnam warehouse for rent
Warehouses are critical to the global economy’s growth and development. As a result, everyone conducting international business needs this critical component of industrial processes. It may be difficult to find a Vietnam warehouse for rent, but it is an important decision that you must make with the assistance of a real estate adviser team.
Savills advises you to consider these important factors when leasing warehouse space.
Finding a Vietnam warehouse for rent to store your products and industrial equipment may be a tough process.
You need a location to keep your products and move precise gear and equipment. You must also ensure that your parking requirements are addressed in a leasing agreement.
The placement of the Vietnam warehouse for rent is often determined by the geographical location of industrial enterprises. To ease product delivery and consumption, the bulk of companies situate facilities near large cities. This not only helps company owners save the time it takes to deliver products, but it also helps them avoid exorbitant transportation expenses.
It’s critical to examine your company’s location while searching for a small or midsize Vietnam warehouse for rent. Is it more convenient for your company to be located on a busy street or farther away from the downtown area? Do you want to be near other industrial parks where you may be able to create business opportunities? It is advisable to choose the site that you think is most suited to your needs.
- Operating and Maintenance Costs
Storage maintenance costs are extremely significant in terms of economic success or failure with many logistical decision issues, such as lot size planning or the adoption of logistics ideas, such as just-in-time manufacturing. Their decrease has a high potential for rationalization.
Storage maintenance expenses average approximately 50% of logistics costs in the industrial industry. That’s why, in order to operate successfully, commodities storage incurs financial expenses that must constantly be carefully balanced against the costs and risk of delivery delays.
Check to see whether maintenance and operational costs are included in the agreement before signing the residential lease. You must understand who is responsible for taxes and insurance, you or the owner. Taxes, insurance, and upkeep are all part of the warehouse’s operating costs. You must understand what the landlord will pay for. As a result, you will be aware of your responsibilities.
Savills Industrial can assist you in looking into the Vietnam warehouse for rent terms and conditions, as well as offering advice and planning a discussion with the landlord to obtain the best solution for both parties.
- Zoning Regulations
If you want to locate a Vietnam warehouse to rent for storage, be sure that the zoning regulations in this region allow it. Vietnam’s industrial zones are dispersed throughout the nation and centered in three administrative regions: Northern, Central, and Southern. Each area has its own distinct features, as well as its own set of incentive schemes.
As Vietnam continues to attract FDI, the infrastructure of industrial zones has been improved to meet international standards. Higher quality industrial parks in general, with investors paying special attention to the quality of factory buildings and warehouses, electricity and water sources, wastewater treatment plants, garbage disposals, fire prevention systems, improved telecommunications, access to banks and post offices, logistic services, and internal roads. As a result, although commuting is simple, it is also extremely secure and separated from the general population.
- When looking for a Vietnam warehouse for rent, usable space is critical
Be mindful that sometimes the estimate of a warehouse’s square footage contains area that isn’t usable. Since you will be using space within the warehouse. Make sure to consult with a real estate professional about how landlords calculate and what they include in their calculations. This is also an essential consideration when leasing warehouse space.
You don’t want a lot of empty space, but there should be enough room to grow. Consider the ceiling height as well: how much can you stack vertically safely? Storing goods this way lowers the amount of square meterage required to store the same quantity of stock.
You also need enough space to maneuver about the facility securely. This includes clearly defined receiving and distribution zones: placing these locations too close together risks stock confusion and a build-up of pallets in high-traffic areas.
Savills Industrial – A leading industrial real estate Team
With the difficult developments of the current state, the occupancy percentage of industrial zones in five major industrial provinces temporarily fell to 72 percent, slightly lower than in the second quarter of 2021. Despite that, the market in Hanoi’s southern provinces, such as Thai Binh, and the northwest provinces, such as Phu Tho and Vinh Phuc, is very busy, with several big projects.
In the southern area, in addition to a drop in the number of newly registered FDI projects, the market for industrial land, ready-built factories and Vietnam warehouse for rent saw a number of manufacturing companies relocate orders out of Vietnam to deal with the issue. However, the order movement is just transitory, and no FDI firms have yet to leave Vietnam.
Savills reports a fast rise in land rental prices, as well as the fact that industrial parks in Bac Ninh resumed production in July, and that FDI continued to flow into the area, namely in Hai Phong and Bac Ninh, helping the region’s average industrial land price rise by 6.1 percent over the same time last year, reaching 108 USD/m2/lease cycle.
As one of Vietnam’s leading industrial real estate offices, Savills Industrial provides businesses and investors with bespoke lease and investment advice to occupiers, developers, and investors. Savills Industrial is committed to providing unbiased counsel, financial guidance, and industrial consulting services.
Hopefully, the article will help you to better understand leasing industrial properties in Vietnam. Contact Savills Industrial now if you need consultations and advice on deciding on a Vietnam warehouse for rent or various other industry needs.