How to Choose the Right Warehouse for Your Business
What Determines the Choice of Warehouse Space
Choosing a warehouse or production facility is today a complex decision that can impact a company’s operations for many years to come. Navigating the market offer is not always easy, which is why we approached our industrial real estate expert, Dávid Řeřicha. He helps clients find the ideal solution and guides them through the entire selection process – from the initial needs analysis to the final signing of the lease agreement.
To begin with – how should companies approach the selection of a warehouse?
The very first question is: what will the warehouse be used for? Equally important is clarifying the company profile – whether it is a local or national business, or a company with an international reach.
International companies first consider their strategic direction and which country is most suitable for them. A local company in the Czech Republic has a simpler decision-making process – it often knows it will remain on the domestic market and looks for warehouses where it makes the most operational sense.
Once the choice falls on the Czech Republic, the company must clearly define the main objective of its operations.
What is the difference between a logistics and a production operation?
In logistics, location is absolutely crucial. This primarily means accessibility to motorways and a high-quality highway network, which is at a good level in the Czech Republic. The country’s position within the CEE region is also a major advantage, with proximity to Germany and Western Europe playing a significant role.
In the case of production facilities, other factors come into play. The key element is the availability of workforce in the given region, employee qualifications, education levels, and labor costs. This is where the Czech Republic has a strong competitive advantage – skilled labor is available and costs are significantly lower than in Western Europe.
Is it possible to place production anywhere?
No. For production, location is extremely important. Not every industrial park is suitable for heavy manufacturing – it depends on zoning regulations and the historical character of the location. Typical examples include areas such as Karviná or Ostrava, where industry has a long tradition.
Therefore, a company must first clarify what type of production it operates, and only then determine where it can realistically be located.
Existing warehouse or built-to-suit development?
Once the client has decided on the location, another key question arises:
Are we looking for an existing warehouse, or a BTS / BTO solution – meaning a facility built to suit?
In the Czech Republic, the supply of both options is sufficient. For example, the Moravian-Silesian Region is particularly strong in BTS projects.
An existing facility is often chosen when time pressure is a factor. The client needs to be operational as quickly as possible and the business is not technologically complex. Typically, this applies to logistics operations with standard storage systems, where a completed building is often the fastest solution.
When does a BTS solution make sense?
However, if a client comes with light or heavy manufacturing operations, or with specific technological requirements, a BTS solution is in most cases more appropriate.
Typical examples include:
- increased floor load capacity in certain parts of the building
- a higher number of loading docks
- dust-free or clean zones separated from the rest of the facility
We also encounter projects where production must be separated into highly controlled zones with their own operational standards, movement of personnel, and material flows. These spaces require special construction elements and technical solutions that standard industrial buildings do not offer. This is one of the reasons why companies increasingly opt for BTS projects today.
What should companies watch out for in older buildings?
Existing industrial properties are often older. In practice, this can mean higher operating costs, for example heating expenses, compared to modern facilities. These hidden costs should be carefully reviewed by every tenant.
If a company has clearly defined ESG targets in its strategy and has committed to carbon neutrality, searching for space in older properties makes only limited sense. In such cases, modern or BTS facilities are a logical and sustainable long-term choice.
How do speculative developments work?
In speculative developments, if the location and size suit the client, the developer is in most cases able to significantly modify the building according to the client’s requirements – from facilities and offices to the last skylight on the roof.
Moreover, most BTS projects today meet the highest ESG standards.
What are the most common mistakes when selecting a warehouse?
Large companies often fail to sufficiently analyze the surrounding area – especially in terms of competition and workforce availability. This can result in difficulties filling production shifts.
Another common mistake is unrealistic expectations regarding the speed of move-in. Clients often underestimate the time required for:
- contractual documentation
- negotiation of lease terms
- legal processes
It is not uncommon that the construction of internal fit-outs, social facilities, or offices is completed faster than the lease-related paperwork.
Why work with a professional advisor?
Companies whose core business is manufacturing or FMCG storage logically do not focus on the real estate market. They are not familiar with market opportunities, standard lease conditions, or negotiation possibilities available to a real estate advisor.
Negotiations are often not about accepting the developer’s first offer. An advisor acts as a mediator who understands what is and is not achievable and can educate the client based on real market data.
Our added value lies in identifying risks and obligations that clients might overlook, such as service charges or commitments arising from the lease agreement.
For international clients, we present not only warehouse options but the entire region from a macroeconomic perspective – GDP, workforce, and living standards. For companies unfamiliar with the Czech Republic, this is essential.
Local companies, on the other hand, often lack the time to dedicate to warehouse selection in detail. In such cases, it makes sense to entrust this responsibility to professionals who know the market and can provide the best possible solution.
The client should have clarity in the following areas:
- I know what I want to do
- I know where I want to do it
- I know when I want to start and when the space must be available
With the support of an agent, available warehouses and parks are mapped. The client receives a shortlist of initial offers including lease conditions. Negotiations then proceed with one or two projects that best meet the client’s requirements.
This is followed by an agreement on lease terms and the technical specifications of the facility, resulting in a space that meets all expectations the client has for their warehouse.
Do you need help choosing the right warehouse space?
.jpg%3F2026-04-13T14%3A04%3A51.701Z&w=3840&q=100)