When there are tons of people here thinking of renting warehouse space, factory space or industrial space it is important for them to know the basic difference between them. We have seen many people using terms such as warehouse space, factory space and industrial space interchangeably. But are they the same? No. Not at all. These three are distinct terms, yes their certain functions are similar but they are NOT SAME. Today in this blog we are going to talk about these three different terms, their benefits and which are the right options for you. So stay tuned till the end of this blog to know how they differ from each other.

What is Warehouse Space?

When you are thinking about storing the products, the image that comes to your mind is of a huge space also known as a warehouse. Simply said, “Warehouses are plain vast buildings which are constructed primarily to store products along with carrying out some additional operations like packing, picking, and shipping.” These warehouse spaces are located in industrial or economic zones in the outskirts of towns. Warehouses are not just storing facilities anymore, they carry out different functions like stock management, inventory management, managing all the inbound and outbound shipping. Warehouses also differ based on their functions. For example General Warehouse and commercial warehouse space. “General Warehouses” these warehouses are used for the sole purpose of storing products. Retailers store their products in this warehouse until they are ready to be shipped. General Warehouses can be customised to temperature control warehouses to store medicines, food, and beverages. You have come across the term “Commercial warehouse space”, well this kind of warehouse has its own office space, loading docks, strong inventory management, and other equipment for seamless logistic operations. Distribution Centres are also part of the Commercial warehouse space where storing, packing, picking, and shipping is done. Renting a warehouse for a business can assure the safety of the products. Many industries invest in renting warehouse space at optimal transit locations to connect with the customer directly.

1. 3PL
2. Pharmaceutical companies
3. FMCG
4. E-commerce companies
5. Wholesalers
6. Distributors and retailers
7. Import and export businesses.

Benefits Of Renting A Warehouse Space

In the era of e-commerce, renting a warehouse for storing products can be a better option. Let’s see some of the benefits:

• Storage facilities
  1. During the peak season, you can stock the warehouse with the products in demand or you can store the products that don't need immediate attention until their demand rises in the market.
• Minimization of risks
  1. If you want the products to be stored in a safer environment then rent a warehouse. Warehouses are generally equipped with all the safety and security measures that can protect products from fire, theft, and any kind of damage. Even if such things happen the tenant can get compensation from the owner if they have warehouse insurance.
• Packing, processing and shipping
  1. Modern warehouses provide all of these three options under one roof. This helps in faster shipping, which can get you repeat customers.
• Save your time
  1. You can’t manage all the warehouse inventory, shipping, repairs, and many more things along with handling your main business. So leave it all on the staff and focus on the main business. Warehouses have efficient staff who can carry out such businesses.

What is Industrial Space/Shed?

If we look at the bookish definition of industrial space it states “The space which is used by the industries to store their raw materials as well as carry out the manufacturing of the products is known as industrial space.” They are even more spacious than warehouses. Back then industrial space just consisted of a roof and four walls, but nowadays they are more aesthetically pleasing to complement the surrounding structure to give a calming environment to work. You can construct the industrial shed or can opt for a pre-engineered Building (PEB industrial space). As the name suggests all the structural parts of the building like purlins, columns, roof, etc are pre-fabricated in an industry then brought to the main manufacturing site. PEB are cost and time-saving options for those who need a wider space for productions as well as for storage. Two main purposes of PEB industrial space are:

• i) fit to purpose
• ii) safe for the workers

Here at Prime Associates, we have PEB industrial space for rent with an efficient infrastructure that can be customised as per your requirement. Check out our website for further information. Industrial space is a better investment, as they are easy to construct and cost-effective, additionally, they are durable. Industrial space comes with concrete flooring, open or closed sides, and tilt panels. Mining operations invest highly in these industrial spaces to store their heavy equipment.

• Features of Industrial Space:

  But what is special in these industrial spaces? Well, there are lots of features that may make industrial space stand out from others.

  1. Available in different sizes
     
  2. They are eco-friendly, once you are done with the current industrial shed, sell it to scrap dealers, who will recycle it to make something more durable.
  3. They are durable as they are made up of galvanised steel. They do not get corroded easily even after years.
  4. They are easy to relocate. You can easily move them to the new location.
• Benefits of Renting An Industrial Space

  Here are some key benefits which you can get when opting for industrial space.

  1. Low cost:
     As mentioned above they are a cheaper option than traditional buildings. Their cost depends on the type of material used. If you even choose to buy it directly from the market it won’t cost a fortune.
  2. Low maintenance:
     Like traditional buildings, where you have to invest in renovations and much more, that is not the case here. industrial space is made up of steel structures, which makes them durable. The steel used in the constructions is galvanised to protect it from rusting.
  3. Longer leases:
     The leasing period of industrial space starts from three years and extends up to almost 10 years. While the tenants can customise the industrial shed as per their will.
  4. They are adaptable:
     The biggest benefit of them all. They are multifunctional; they can be used as a warehouse, as a manufacturing unit. An Industrial shed can be used as a warehouse as well as a manufacturing unit at the same time, it will help to reduce the cost as you won’t have to invest in two different buildings.
  5. They are aesthetically pleasing:
     This benefit is not the important one, as who deals with industrial stuff doesn’t dwell on the looks. But it was in the past when the industrial space looked dull, in this age industrial space comes with different designs to make them look more beautiful.

What Is Factory Space?

Factory space may be used interchangeably with warehouse space but that is not the case. All the manufacturing processes such as fabrication, assembling, production can be carried out here. Plus you get an office space where you can conduct meetings with employees to make updates and keep an eye on the production. Unlike that of industrial space, factory space doesn’t provide enough space for storage. These buildings are owned by particular businesses only. So in short it is a combination of office space and manufacturing space.
Factory space consists of

• A production area
• Office areas where one can conduct meetings
• Space for loading and unloading items
• Separate parking lots
• And a space for waste collection and treatment.

From this utmost, around 82-83% area is occupied for the production. Factory spaces are well-constructed, having concrete flooring which can handle the weight of heavy machinery and an adequate amount of roof height, and many variations are available. Which solely depends on the size and type of equipment which is going to be used for the production purpose.
If some heavy industry has to lease a factory space, the owner has to provide all the necessities, which includes

• high-power facilities
• Ample dock space for loading and unloading
• Customization facilities as per the clients’ requirements.

Whereas light industries need less area for production. Most of the time for these industries only one of the processes is carried out at factory space such as assembling or fabrication. After this process, they are stored until they are ready to be shipped to the vendors or dealers.

Benefits Of Renting A Factory Space:

There are various reasons for which you can opt for factory space some of these are:

• They are customizable
  1. You can use the space as per your will. Factory space can be converted into an office building or can be used by industry to carry out the whole manufacturing process.
• The leases are longer
  1. The lease term is a minimum of 3 years and extends up to 10 years. If the tenant is habituated with the place, there might be chances that the lease can last for a long time. It would be chaotic even for a tenant to move all the manufacturing equipment to different places over time, so one can hope for longer leases.
• They have a durability factor
  1. Factory spaces are constructed in such a way that they can support the manufacturing of the product and many other processes that can be carried out. And because of their durability, they require very little maintenance.
• They are cost-effective
  1. The construction cost of building a factory space is less as compared to constructing a building. And factory spaces on rent are available at affordable prices at the ideal location, from where you can carry out business smoothly.

But does the difference between Warehouse Space vs Factory Space vs Industrial Space matter?

Yes, absolutely it matters. Having basic knowledge about the difference between these three terms can save you time and money. How? Suppose, you own a business that requires a factory space, but what if you ended up renting a warehouse space? This may affect the business. This is common to see people renting industrial space instead of factory space or warehouse because they do not know the difference between these terms. Which in turn cost them a hefty amount of money. But you won’t find yourself in such a situation where you rented out more space or even worse less space which can be hectic even for employees.
Before renting out any space, be specific about what you want.

• Understand the purpose and your business requirements.
• Does your business require production, storing, shipping and packaging, or all of the above?
• Make criteria of what you want specifically, and choose according to your business requirements.

When should you go for warehouse space?

If you only want a space where you can store your products then you can rent a warehouse for that. Warehouses are the backbone of e-commerce companies, as all of their products are stored and dispatched from here. In this age, people are getting creative and turning warehouse space into their office space. Many businesses have tried this concept and are quite successful for them. Would you give it a try?

When should you go for industrial space?

If you have tons of different business operations to carry out then you can rent an industrial space. As industrial spaces are way more spacious than warehouses, you can conduct different operations from the same place seamlessly.

When should you go for factory space?

If your main purpose is manufacturing or you need to expand your production line then the best choice is renting a factory space. Many small factories like a paper factory, cloth manufacturing, electric bulb, computer assembling and many more can lease a factory space for their needs.

Final thoughts...

The key difference between warehouse space, industrial space, and factory space is as follows: Warehouse space: it is only used for storing products, additionally packaging and shipping can be done here. Industrial space: it is multifunctional; it can be used as a warehouse as well as factory space or both. Factory space: it is used only for production purposes and there you can not store this space. Prime Associates is your trustworthy leasing partner in Gujarat. Whether you need warehouse space, industrial space or factory space for rent just give us a call. We are open to negotiations. Experience our high-class amenities and services at the most optimal locations in Gujarat. Do we miss something here? Please let us know below.