Rent and sale of class C warehouses

When a company is searching for a warehouse to rent, it should identify minimal requirements for the premise, such as technical specifications, location, storage conditions, and budget. 

It’s not always appropriate to consider only warehouses of high classes. The premise to store goods should meet business needs. Thus, for example, to store wooden goods, you need only to consider optimal humidity conditions in a warehouse. 

Most entrepreneurs choose C-class warehouses to lease, as it’s the best option by renting price and storage conditions. 

According to the classification by Knight Frank brokerage agency, class C warehouses are min-term. They are inferior in class A and B storage facilities.

By definition of the brokerage agency, class C warehouse is a storage facility which has been constructed for productive activities. It also can be a heat-insulated hangar. As can be seen from the definition, type C warehouses were constructed without taking into warehousing logistics considerations. Later the facilities were just upgraded.

Class C warehouses have one or several floors. According to the classification by Knight Frank brokerage agency, in the second case, the facilities must be equipped with service elevators or lifts. It’s an important option, as you can organize better conditions in your warehouse.

You should take time off to find the best class C option, as requirements for such storage facilities are unfocused. So, you can find a warehouse with bad storage conditions or just choose more carefully. Then, there is a great chance to find a well-equipped option with exact specifications.

Despite all warehouse classifications being formal, it’s a great tool to put a value on storage facilities requirements. Moreover, market players can better understand for what purposes a warehouse can be used.

As class C warehouses are used to store goods in unstrict storage conditions, brokerage agencies impose minimal requirements for such types of premises. 

Compulsory technical specifications requirements for class C warehouses are below: 

• Minimum ceiling height is from 4 meters. 
• Asphalt or concrete floor without anti dust coating.

Despite brokerage agencies don’t imposing requirements for class C warehouses floor loading, it’s better to choose options with the highest workload. So, you can store heavy freights and even use warehousing equipment.

Also, there are non-mandatory, but desirable requirements for class C warehouses: 

• A warehouse is safeguarded across the entire area. 
• There are support facilities, such back and locker rooms, in the territory of a warehouse. 
• There is office space in a warehouse area.
• A warehouse is equipped with ventilation, heating, and fire fighting systems. 
• Telecommunications in a warehouse are available. 
• Gates with on ground zero are available. So, it’s easier for loaded transport to stop by in a warehouse for loading and unloading. 
• Parking in warehouse territory is available, so a driver can stop by and wait for loading and unloading. An area to manoeuvre is a desirable option too. 
• If there are no gates on ground zero, it’s desirable a warehouse will be equipped with a ramp, so it gets easier to do material handling. 
• A branch railway line near a warehouse would be a plus.

As you can see from the requirements list, if you find a well-equipped class C warehouse, you’ll ensure optimal storage conditions by good price.

It should be noticed, there are no special requirements for a warehouse location in the classification by Knight Frank. The location is an important option you need to consider. By renting a warehouse near highways, you’ll get benefits in transportation expenses decreasing. 

In fact, Ukrainian brokerage agencies don’t provide class C warehouses analytics. They track only statistics for warehouses of high classes, such A+, A, B+, B. However, there are a lot of class C warehouses in Ukraine. To compare, there are about 1,8 millions square meters of class A+, A, B+ warehouses, and about 3,6 millions square meters of C class warehouses. 

High class storage facilities are prefered by logistics providers, large retailers, and other enterprises, and class C warehouses are in great demand among SMBs. Also, it’s a great option for temporary storage. 

Brokerage agencies don’t provide information about class C warehouses renting rates. However, according to WareTeka’s statistics, the cost for such storage facilities strongly depends on location. For example, the cost is about 30 UAH per square meter  in small Ukrainian settlements, and from 60 UAH in large industrial centers. The highest price for class C warehouses is in Kyiv. It’s about 80 UAH per square meter. 

Generally, in logistics real estate market, renting rates strongly depend on class of storage facilities, but there are other options to form the final cost: 

• Location, It’s so important aspect. For example, when a company delivers the last mile to an end-user, it can rent a warehouse in or out of a city. But the expenses will be different. If you rent a warehouse for the last mile out of a city, delivery time and costs will increase. The expenses will grow, and your clients’ level of confidence will decrease. One more case is when a company transports goods from one city to another. So, it’s so important to find a warehouse that is located near right road directions. Eventually, the closer a storage facility to highways, the higher the final cost. But you’ll decrease your transportation expenses.
• The type. Goods should be stored in the right storage conditions. So, a warehouse should be equipped with refrigerators, ventilation and heating systems. By storage conditions, premises can be divided into dry, warm, cold types of warehouses. To keep the right temperature conditions, you need to purchase additional equipment. Then, if a warehouse is already equipped with temperature regulating systems, the price for it will be higher.
• Additional technical equipment. Ramps, shelving, forklifts, racking systems are additional equipment to make your warehousing operations easier. But the cost for a well-equipped storage facility is higher.

It should be noted most landlords set the warehouse rental cost per one square meter. Moreover, they can provide partially leasing options. So, if you need to store large amounts of goods, you have to rent more storage space, so the final price will be higher.

You should take time off to find a class C warehouse with good storage capacity and technical equipment. So, Wareteka is here to help you. We provide you with well-designed tools to quickly find a storage facility that meets your business requirements. 

We offer: 

• The powerful filtering system to personalize your searching. Most websites with commercial rental proposals don’t include important warehouse options, such types, classes, storage space, technical equipment, etc. The WareTeka platform takes into account specific features of warehouse requests. You can sort ads by relevant options for your business on the website. Moreover, you can see available proposals on the interactive map. So, you can put a value on location. Just explore what objects, routes are near a warehouse. 
• The largest warehouse database in Ukraine. At the moment, our platform aggregates data about storage facilities throughout the country. Here, you can find a suitable warehouse both in large and small cities. Now more than 1500 warehouses are in our database. 
• Expert help in choosing the best storage facility. If you have a request on warehousing services, but can’t find the right option, just contact our managers. We’ll help you to find and select appropriate storage solutions that meet your business needs.

More than 300 class C warehouses are available on the platform for now. So just find a suitable storage service.