Retail and eCommerce domains are rapidly growing worldwide. They need specially equipped warehouses to store products with predetermined temperature conditions. Large amounts of food companies prefer to rent B class warehouses. Such storage facilities combine greate storage conditions and lower rental rents in comparison with class A warehouses.
According to the most popular classification by brokerage agency Knight Frank, a warehouse of type B is a premise with one or several floors. As a rule, such facilities are rectangular-shaped. Class B warehouse can be built from scratch or reconstructed by storage requirements.
Multi-storey warehouses have to be equipped with freight elevators. According to the classification, minimum load capacity is at least 3 tons. Also, experts from Knight Frank company clarify the optimal number of elevators. It’s 1 unit per 2 000 square meters. This requirement is optional.
Warehouse classification by classes is a convenient tool for real estate market players. Therefore, a tenant can evaluate a facility, find out more information about minimum requirements for a warehouse of any type, and choose the most relevant premises.
According to the Knight Frank’s classification, warehouses are divided into 6 types. They are “A+”, “A”, “B+” “B”, “C”, and “D”. Class A+ warehouses are facilities which fully meet business needs. They are equipped with everything that is necessary for safe products storage. And class C warehouses are the lowest type of facilities for product storage without special conditions. Type B warehouses are interim.
Brokerage agency Knight Frank imposes minimum requirements to class B warehouses specifications:
It should be noted that there are no requirements in the classification to minimum floor load for class B warehouses.
Also, Knight Frank imposes additional requirements to utility lines and equipment for class B warehouses:
Also, there have to be good conditions for vehicles loading and unloading in class B warehouses. Facilities are equipped with ramps. Moreover, here are platforms, where a transport can operate and wait its turn on loading/unloading.
According to Knight Frank’s requirements, security personnel work on warehouse territory. One more mandatory requirement is availability of support facilities, such as offices, locker rooms, housekeeping areas, etc.
The classification also imposes optional requirements:
To conclude, class B warehouses trail class A facilities by specifications and operational features. Therefore, they suit companies which want to rent a warehouse at an optimal price.
At the moment there is an accurate shortage of high-end warehouses in Ukraine. Large retailers prefer to build their own modern storage facilities from scratch. However, class B warehouses could offer a good alternative for smaller companies.
The most popular location to rent a warehouse in the Kyiv region is Brovary. It’s a satellite city with a huge industrial capacity and convenient traffic interchange. Moreover, the Chernihiv highway (M01) runs here.
B-class warehouses to lease are in demand and among large companies. So, according to the CBRE’s information, Fozzy has rented more than 7 000 square meters of RLC Peremoha warehouse in 2020. Also, logistics provider UVK has expanded by renting more than 4 000 square meters of storage area in Unilogic Park II warehouse.
Report for 1H 2020 by CBRE shows that class B warehouses rental rents range from 90 to 110 UAH per square meter. While considering renting, companies should also note facility type, as the renting price for cold storage areas will be higher. It’s from 200 UAH per square meter.
As a rule, renting price for warehouses is calculated by 3 options:
Tenants should know majority landlords suggest rent price per 1 square meter. So, the more storage space a company needs, the higher costs. While calculating expenses on warehouse maintenance, it should be considered utility payments.
3PL providers, retailers, and other business domains use logistics real estate to scale their business. Nevertheless, searching for storage facilities is time consuming, as there are no user-friendly tools in the market. WareTeka was developed to solve the problem.
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