Introduction:
The logistics and warehouse industry in India is growing exponentially with the boom in e-commerce, retail, manufacturing, and other sectors. This has led to huge demand for quality logistics park plots and warehouse spaces. For businesses that depend on storage and distribution infrastructure, owning a plot in an organized logistics park has key advantages compared to leasing warehouse space.
In this article, we explore the major benefits of owning a plot in a logistics park:
More Control and Flexibility in Operations
Owning your own warehouse plot gives you full control over your space and operations. You can customize the layout, design material handling systems optimized for your goods, integrate automation technology, and make other improvements per business needs without restrictions. Having full control enables you to maximize efficiency.
Potential for Capital Appreciation
Plots in grade A logistics parks tend to appreciate well due to strong demand and limited supply. The strategic locations also play a role in driving up valuation. Owning the land means you benefit directly from any appreciated property value over time.
Stable Long Term Solution
Leasing warehouse space means the possibility of unstable rental costs if lease rates rise sharply when renewing contracts. Ownership provides a fixed asset securing your storage needs for the long haul. No concerns about abrupt rent hikes, non-renewal of leases etc.
Tax Benefits
Owning a plot has tax advantages over leased spaces. The depreciation of buildings and structures on the land can be claimed as depreciation allowance, reducing tax liability. The net income from warehouse operations on owned land is also taxed favorably.
Customized Warehouse As Per Needs
When leasing space, you must adapt to the existing layout and facilities. Ownership enables designing and developing customized warehouses with features like loading docks, power supply, racking, automation, etc. tailored to your exact business specifications.
Collateral for Raising Funds
Owned land and warehouse serve as strong collateral for loans if you need to raise debt or working capital for business. Banks are more willing to lend against concrete assets owned by the company.
No Relocation Hassles
Leased warehouses may require relocating once your term ends, causing business disruptions. Owned plots secure your operating base in the long run without risks of having to move warehousing frequently.
Option to Lease or Sell Partially
Based on business needs, you can choose to lease out a portion of owned warehouse space to other companies. Some leased income diversifies revenue streams. Selling a fraction of a large plot is also possible if required.
Conclusion
While leasing logistics space offers more flexibility, owning your own plot in a strategic logistics park provides long term stability and control over your most crucial business asset – storage and distribution infrastructure. As the supply chain gains priority, the benefits of owning your own warehouse plot will only amplify further.
Let me know if you need any clarification or have additional questions about the advantages of owning logistics park Get in touch.
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