Normally imagined as a large storage space, warehouses are a fundamental structure used to maintain many business operations and therefore, provide the groundwork for a prosperous economy.
In Perth, a commercial or industrial warehouse can entail a lot more services beyond merely storing products. For some business owners, their warehouse is the source of all their operations, including production, logistics, storage, and distribution. The functional offering of a warehouse is often the most important aspect when buying or selling a warehouse property.
This article breaks down the key differences between various warehouse forms and functions and shares the considerations to make when looking to buy, sell or lease a warehouse in Perth. For more specific considerations when buying a warehouse, see this article titled ‘Commercial Warehouses For Sale: Top Considerations’.
Private –
Private warehousing is the most common status of a site in Perth as it describes the warehouses owned and operated solely by one business for its own storage and distribution activities. A private warehouse may provide a specific function or a wide variety of functions to the owner, as we describe in more detail below.
Public –
A public warehouse is owned by an independent company and space is then leased out to one or multiple businesses. Often this is an attractive prospect for a retailer whose products or services are a seasonal provision, meaning their occupation of the warehouse space is on a short-term basis.
The stereotypical storage function of a warehouse is undoubtedly important; however, many warehouses in Perth require more functional attributes to achieve their purpose. Here we explore some of the most common warehouse functions.
Distribution – Commonly referred to as a distribution centre or DC, this warehouse is used to store incoming products for a limited time before they’re separated and transported out to vendors or outlets where the products will be on sale. A warehouse used for distribution has a large volume of inbound and outbound deliveries so being in a prime location with efficient transport avenues is pivotal to success.
Production – A warehouse with the purpose of manufacturing a product would be referred to as a factory, but in some instances, a warehouse is needed to hold raw materials within a manufacturing or production site. This warehouse isn’t involved with business-to-business (B2B) or business-to-consumer (B2C) affairs, rather, it manages the demand for materials, or semi-finished goods that are awaiting further use at the site. The benefit of this is to ensure production isn’t delayed or halted due to material shortages.
Pick, Pack, Ship – The process of picking, packing, and shipping, is often utilised within ecommerce vendors. A warehouse would hold the stock until an order is received online or from a brick-and-mortar store, before proceeding to collect the ordered items. From there, the items are packed, labelled, and delivered direct to the customers location.
In some large-scale operations, this process may be automated within a ‘smart’ warehouse. This can be beneficial as it reduces administration and the risk of mistakes or accidents which may arise if undertaken by a manual workforce.
Temperature and climate-controlled – A temperature-controlled warehouse will store goods at a specific temperature, particularly useful for perishable, refrigerated products. Most warehouses in Perth would have a temperature-control function given the extreme heat, but for companies with sensitive products, this function needs to be more extreme.
Climate-controlled storage warehouses take temperature control to another degree, where they may be required to maintain airflow and humidity levels as well. Some highly sensitive products such as some fabrics, wood, expensive paintings, and electronics, may have an increased risk of growing mould or being damaged by water vapour. A climate-controlled facility should be equipped with heavy-duty HVAC systems, specialised insulation, and dehumidifiers to achieve the perfect air and climate quality.
Bonded – A bonded warehouse or customs warehouse is a facility which can store imported goods without the need to pay an expensive import duty. In some cases, products can be sold directly from the warehouse and the duty is applied on the proceeds of the sale.
On-Demand – As aforementioned, this public warehouse is a space where lots can be rented for a short-term or for a seasonal product offering. This is great for companies who don’t require a permanent warehouse space.
If you’re ready to sell a warehouse in Perth, it’s important to understand the primary and secondary purpose of the property. As you now know, there are multiple functions that may categorise your warehouse a step further than just storage. Knowing the key functions can help you identify a likely buyer and advertise in a way that will target this audience.
Another thing to be wary of in Perth is ‘zoning’. Across the city, all land has a specified zone, usually categorised as either residential, industrial, commercial, or agricultural. This may limit the selling options if your warehouse is in a specific zone.
Selling a commercial or industrial property, such as a warehouse, can be a daunting task. There are many aspects of a property that can be easily improved or removed to maximise the value of the site.
At Ross Scarfone Real Estate, we have the experience to know what makes a property standout. For over 30 years we have been selling and leasing warehouses across Perth, at the best possible sale price.
If you need some expert advice or assistance in selling a warehouse or commercial property in Perth, reach out to the team today and see what we can do for you.
When buying a warehouse in Perth, it’s important to understand what your business needs beyond just storage. The location, transport access, environmental control needs, security, and room to expand are considerations that should be front of mind.
The team at Ross Scarfone Real Estate has extensive knowledge of the Perth property market and can help you and your business make an informed decision that best suits your needs.
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