Warehouses for rental are available in the suburbs of Sydney. A search was
conducted and the results were obtained. Although the size of the warehouse which
is being sought was not specified it was clear that a good space was required. After
an intense search, the following property was found to be suitable and available for
leasing. It is located at the Ultimo Trade Centre, Wattle Street Ultimo which is
situated between Wattle and Jones Street Ultimo, Commercial Real Estate( 2019).
The warehouse:
 Is spacious, measuring 326 square meters.
 Is situated on the ground floor and it has enough zones for loading and
vehicles can access easily.
 Is easy and very convenient to access the Sydney CBD.
 costs are $ 58,000 to lease per year.
Why leasing is the best option
Leasing, for now, is the best option because of the available resources. The startup
capital of $ 300,000 is limiting. The amount is not enough to purchase a good
warehouse in a convenient place and also to serve as working capital to start and
run a new business.
Purchasing one requires huge upfront payments in the form of deposits. Even after
purchasing there would be costs of maintenance. Property has its costs.
Maintenance and repairs, insurance and taxes would have to be paid. These
amounts, combined with monthly loan repayments-in case a mortgage was taken-
will impact very negatively on profitability, Microsoft (2019).
By choosing to lease the property rather than to buy one, money is saved. It is
extremely expensive to purchase commercial property. On average, the cost of a
warehouse measuring between 275 and 326 square meters is about $750,000. The
amount is enormous in comparison with the annual $58,000 required as rent for the
same size building in a lease arrangement.
When a property is rented such expenses would be avoided and liquidity would
remain better. Better liquidity means better capital would be available for the
business. The other advantage of leasing is the flexibility it affords. Tenants are not
tied to a particular building or location like a property owner. If the business fails to
thrive the choice to relocate or fold up is available without worrying about what to
do with the property.

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Leasing a Warehouse in Sydney: Benefits and Costs

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