Extending the lease area

The surface area of the warehouse is central to effective company operations. It affects the availability of the stored goods, which directly translates into efficiency. When the current warehouse proves to be too small to meet the increasing demand, the tenant has to look for additional space. In this case, they might choose between two solutions: extending the existing area or changing the location altogether.

1. I choose to remain in the currently occupied warehouse park

If, having occupied the leased space for a certain time, the company finds itself in need of a larger space, as it becomes necessary for its effective functioning, it is crucial to examine the available opportunities within the currently leased warehouse. One solution might be to lease available units in the same building. If there is no such space available, and the investor is fully satisfied with the current location and lease terms, it is worth inquiring whether it is possible to build another warehouse.

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2. I am looking for a new, larger warehouse

If the current warehouse space is inadequate for the company’s needs, and it is impossible to extend it, e.g. by constructing a new building, the investor has little choice but to look for another location. It is worthwhile to analyse the potential needs, as it should make it possible to determine whether the company should search for a warehouse that is already available on the market or develop a BTS space. In order to minimise the future risk of insufficient space, the tenant should specify the features which might be required of the building in the long term.

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Tomasz Mika