Why is it a good idea to relocate? Advantages of new warehouse facilities
16 january 2020
A long-term residency in a warehouse location means comfort – there’s no need to think about the challenges of shifting logistical operations to another building in a different location. On the other hand, changes - albeit difficult and demanding some extra effort - will frequently help companies accelerate their business growth and make considerable operational savings. With this in mind, below we have drawn up a brief set of arguments in favour of relocation.
When choosing a new location, you can have a building built according to your technical requirements, thereby making the best use of your operational space based on your experience with your existing warehouse. It is similar with offices designed and built with a developer’s architect involved in the process – they are built in line with a tenant’s expectations, to a higher standard and with no need for extension.
Having a custom-made facility goes beyond the building’s interior – external spaces such as parking facilities can also be planned and laid out to further improve the operational capacity of your new warehouse. In addition, the costs of your technical requirements can be included in your rent so that you do not have to bear any additional related expenses.
Operational costs down
Your “best practices” and “lessons learned” from your current location and operations can help you eliminate process bottlenecks, slowdowns and risks. Optimized operations will guarantee product flow improvements and therefore will bring logistics costs down.
You will save on service charges
General ergonomics standards in industrial construction have evolved over recent years. Since 2014, heat transfer coefficients for walls and roofs have increased and so has the thickness of the building fabric. In practice, this means that new warehouse buildings are better insulated against external weather conditions, which translates directly into lower heating costs in winter and a comfortable work environment in summer.,
LED lighting is fitted as standard in modern warehouses – it is more electricity-efficient and lasts longer than traditional lighting such as discharge lamps or linear fluorescent lamps. Automatic lighting control systems are also frequently fitted so that lighting in unused warehouse premises is either dimmed or switched off entirely – with a noticeable effect on your electricity bills!
You will pay less property tax
One of indisputable advantages of new warehouse buildings is that they are exempt from property tax during the first calendar year of their lease. This means that a tenant leasing 10,000 sq m will save more than PLN 240,000, or EUR 50,000, per full calendar year. Property tax savings can be higher in the case of longer exemption periods of three, five or even ten years!
Logistical operations made easier
Developers will go the extra mile to meet tenants’ requirements by implementing solutions to facilitate warehouse operations and make a better practical use of available space – the absence of the first line of columns in the dock area or having a 24x24 column grid will make acceptance, release and picking of products easier; a reinforced floor will be strong enough to accommodate more or heavier products; and a higher fire resistance will make it possible to store larger quantities of goods on a smaller space.
Logistical operations can also benefit from new IT infrastructure that can accelerate the exchange of data between a client’s ERP system and WSM software used in managing warehouse operations.
A new warehouse = fewer problems
The costs of repairs to a new warehouse are incomparably lower compared to older facilities. An advantage of new industrial parks is that their key structural elements are covered by two- to ten-year-long guarantees. During that period, repair and replacement costs are borne by the general contractor, with no additional burden on the tenant.
When deciding to lease a custom-made building, you can have green or sustainable systems fixed such as solar panels, heat pumps or a system for maximum water efficiency, or have a building delivered that meets sustainable certification requirements (e.g. BREEAM or LEED).