Businesses; whether big or small, can make use of a storage location of some sort. Sure, startups might not need a big warehouse at the moment but as it grows, more orders would come in and the need to store extra items to supply the demand would come along with the said orders. This scenario happens in every country and city. Auckland in New Zealand is not an exception. However, when is the right time to lease or buy a warehouse?
If you rent a warehouse, you need to consider the rental price. Will it be within your budget? The decision to rent a warehouse will depend on the situation itself. Take for instance some supermarkets. Big supermarkets automatically require a warehouse or warehouses to store their goods. A middle-sized supermarket also uses a warehouse; albeit at a smaller size. Small stores like the 24/7 convenience stores use the building storage facility adjacent to the store to use as their mini-warehouse. Do you need it just temporarily? It would be best to find a lease where you could hire it out for a short time. A movie producer could rent an Auckland warehouse for a few days, just for the time he needs the space.
Warehouses in Auckland
As mentioned earlier, Auckland also has its share of warehouses. Clearly, other installations use warehouses as a storage facility. Logistics companies use warehouses to store items up for delivery. Warehouses can also act as a distribution center. Warehouses typically store items for 6 months to a year. People also use warehouses as a business. They can either sell or lease the warehouse to somebody else. This brings up that very special question: When to buy? When to rent?
Rent or buy?
Each option has its advantages and disadvantages. As you may well know, Auckland is a very prosperous city in New Zealand. Business is good and starting a business here would benefit not only the business owner but the people as well. Putting that into perspective, Putting that into perspective, warehouses can provide profit whether it’s used as a storage for items or using it as the business itself. Now, if one will purchase a warehouse, it will provide more stability in the long run. If one chooses to rent the warehouse, it will give more flexibility for the owner.
Business owners can forget about rental fees if they chose to purchase their own warehouse. If the time comes and the business must transfer to another location (i.e. country), the owner can sell it. This decision to sell the property will benefit the owner because he will not have to maintain it anymore especially if he goes to another country and decides to live there permanently.
Renting a warehouse means the owner will handle the maintenance of the warehouse and not the one renting it. The lessee only needs to pay the rent and go about his business. If he chooses to relocate his business, he can still use the same warehouse unless he decides to bring his business to another country.
The bottom line
Renting or buying a warehouse totally depends on the situation of the business. However, if one would be chosen over the other, buying one is the best choice. If you were to decide, lease or buy?