During the years 2021–2025, the e-commerce business in Southeast Asia is predicted to develop at a high annual growth rate. The figure reflects the growth of online trade platforms as well as customer demand for a more convenient shopping experience. Because of customers’ growing expectation for speedier delivery, retailers have struggled to process their online purchases. Small warehouses are critical elements in the supply chain that contribute to the resolution of difficulties. Therefore, demand for the small size warehouse for lease in Southeast Asia has lately grown which may help firms obtain competitive advantages and attract more big investors.
Why Invest in The Small Size Warehouse for Lease in Southeast Asia?
The trend of warehouses in Southeast Asia
Small or micro warehousing is a type of storage that is commonly found in densely populated places or urban centers when square footage for a big factory is expensive and restricted. Small warehouses are typically less than 200,000 m2, and many businesses are searching for areas as small as 50,000 m2.
Internet usage rates in developing Asia are fast increasing, swiftly transferring customers online and fueling e-commerce adoption—the single most important driver driving investment in the logistics sector. Southeast Asia as a whole had 370 million internet users (more than the whole population of the United States) in 2018, with most nations experiencing a double-digit increase in digital activity. The region’s digital economy is expected to be worth US $240 billion by 2025. As the retail environment evolves, big logistics developers are expanding their operations in new areas.
Also, manufacturing is shifting from traditionally dominating locations such as China to new markets in Southeast Asia. Because the region is a burgeoning industrial hub for global corporations, warehousing and logistics facilities are in high demand. For example, owing to a mix of tax breaks and cheap labor costs, Vietnam has increased its attraction to multinational firms while also boosting supply chains.Thus, its industrial sector, particularly logistics services, will see more potential growth.
As a result, many countries are encouraging the small size warehouse for lease in Southeast Asia, particularly those equipped with robots and automation systems. When it comes to the e-commerce market, perhaps the size of a warehouse does matter. Large warehouses are less desirable than small ones. Because of the growing demand, the availability of small storage is at a low vacancy rate. Smaller-sized warehouse rental rates have climbed dramatically in the previous three years.
The benefits of renting small warehouses
When dealing with challenges caused by customer expectations, small warehouses equipped with innovative technology will be the most appropriate business answer. The following are some advantages of micro storage facilities.
1. Lowering high operational expenses
The huge decrease in transportation costs is one of the most significant benefits of converting to a mini fulfillment center. Managing end-customer shipments on your own may increase operational expenditures and diminish efficiency due to restricted resources and logistics network constraints. The money saved by employing external fulfillment and storage services may be used to help the firm grow even more quickly.
Furthermore, small-scale storage can reduce investment costs. The first benefit is a decrease in the cost of premise leasing. Businesses that hire workshops will save a lot of money as a result of this. Small warehouses for rent may also help firms save money on maintenance and renovation. Restoration costs are calculated based on the scope of the job. The cost of rehabilitating a large facility will be higher. Small companies will save money on maintenance as a consequence.
2. Reducing warehouse space
Because online businesses often have limited storage space, high-density solutions for an effective in-store fulfillment process are crucial for sellers. Large warehouses do not appear to fit their needs because they merely need a suitable location to handle their orders. Excess warehouse capacity can harm a company’s performance.
3. Efforts to enhance the supply chain
One of the most challenging aspects for online companies is warehouse control and delivery to last-mile consumers. Fast delivery solutions must be established to maintain company competition because it has a direct influence on client retention and brand image.
Small warehouses assist retailers in locating items closer to consumers, resulting in rapid delivery and in-person pick up in these tough conditions.
One of the primary benefits of renting smaller warehouses for e-commerce businesses is the possibility to create customer fulfillment centers in heavily populated urban regions, which implies quicker delivery times, fresher products, and more specialized customer care.
What to Consider When Leasing a Small-sized Warehouse in Southeast Asia?
When it comes to the small size warehouse for lease in Southeast Asia, it is critical to consider all of the following elements, take notes, and then compare your notes to all or any of the available criteria. The final decision should be made purely based on the information that has been obtained and examined. To choose the ideal warehouse in Southeast Asia for the warehouse sector, business owners must examine several things.
Cost is an important consideration when choosing a warehouse in Southeast Asia. There is a hidden cost that has a negative influence on the cheap lease rates. Thus, cost concerns should always be considered in any aspect of the business.
Tax benefits, government regulations, and taxation policies should all be considered because they are different among Southeast Asian countries. Government-sponsored special programs targeted at supporting certain industrial segments may potentially benefit your firm.
Every country does not have the same level of labor quality, cost, or stability. In highly populated locations, low labor supply and high demand will drive up wages and increase turnover rates. The optimum location in terms of workforce availability is one that finds the right balance between levels of income and education.
Because of the proximity to key transportation networks, the shipping process will be expedited. The best warehouse location will find a balance between client proximity and distance from the factory site. The objective is to be close to the delivery region, with quick access to main roads or highways—all while decreasing traffic jams, which become increasingly difficult as population density increases. All of these carrier issues will have a substantial impact on total shipping costs.
It is necessary to check the provider’s profile before signing any lease contracts. A firm should choose reliable companies operating in that field to ensure the quality of warehouses. Maybe the leasing rate of big companies will be more expensive than the smaller ones, but it is worth it for the service and remuneration. Savills Industrial Vietnam is one of the biggest companies with appropriate qualifications in the warehouse leasing industry.
Savill Industrials – The Best Warehouse Provider in Vietnam!
Vietnam’s leading industrial real estate company
Savills Vietnam launched a full-service solution for industrial real estate in 2017 after significant growth in the manufacturing and logistics industries.
Manufacturing and logistics real estate consulting is provided by industry specialists with considerable market knowledge and skills. Our services range from market entry through leasing, investment, evaluation, transactions, and disposal.
Conduct in-depth market research on small size warehouse leasing in Southeast Asia especially Vietnam
A detailed understanding of the target audience, competitors, and market is necessary to get a competitive advantage. Savills Industrial Real Estate Services provides technical and macro analysis to ensure that all market components are tracked to ensure project success. Savills Industrial Services Department may assist you if you are considering entering the market for the first time or extending or expanding your activities.
Consulted by specialists
Savills Industrial offers a team of trained professionals that advise on the warehouse or factory industrial perspective in Vietnam, as well as the best industrial properties for each company’s features and nature. Consumers will receive specialist guidance throughout the working process, answer inquiries regarding rental issues, and resolve any difficulties that emerge. Customers will be accompanied by specialists until they make a final decision.
Available Small Size for Lease in Vietnam of Savills
The following are some of Savills Industrials’ small warehouses for leasing in Vietnam:
– Location: Long Thanh, Dong Nai Province
– Total area: 60,000 m²
– Vacant area: 36,000 m²
– Price: $5/m²
– Key features:
+ Comprehensive infrastructure system (Japanese standards)
+ Strategic location: 54km from HCMC, 51km from Tan Son Nhat international airport, 38km from Cat Lai port.
+ Convenient traffic system
+ Loading capacity: 5t/m2
– Location: Can Giuoc District, Long An Province
– Total area: 17,680 m²
– Vacant area: 9,984 m²
– Price: $5/m²
– Key features:
+ Building specifications of high quality
+ Flexible unit size
+ Suitable for FMCG, e-commerce and logistics
+ Easy to access location: 25km from HCMC, 27km to Tan Son Nhat Airport.
+ Loading capacity: 2t/m2
+ Ceiling height: 12.9m
– Location: Tu Son Dist, Bac Ninh Province
– Total area: 100,000 m²
– Vacant area: 18,800 m²
– Price: $5/m²
– Key features:
+ Created to encourage for the movement and/or storage of products.
+ Smart LED lighting
+ Rainwater capture
+ Skylights in roof
Read more: The Emerging Trend of Industrial Park Leasing in Southeast Asia
With rising e-commerce enterprises and their operating regions, limited resources to handle stocks, and unanticipated consumer requirements, micro storage is one of the most sustainable solutions for emerging industries like Southeast Asia that is steadily finding its way throughout the whole digital commerce ecosystem.
Savills Industrial Vietnam provides a variety of warehousing alternatives to meet the needs of its customers. Savills Vietnam is creating the benchmark for being a dependable and leading industrial real estate service in Vietnam by providing completely functional small warehouses around the country. If you want to lease a small warehouse with the aid of specialists, call Mr. John Campbell right now!