News Sep 19 23

Finding the Factory for Lease with Various Sizes that Best Suit Your Business Needs

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In the world of industrial real estate leasing, finding the perfect factory for rent‘s size is crucial for your business’s success. This blog explores the advantages and considerations of factory for lease with various sizes, helping you make an informed decision that aligns with your specific needs.

Small-Scale Factories for Lease

Small factories provide some unique advantages.
Small factories provide some unique advantages. Photo from Pexels.

Advantages of opting for a small-scale factory space


One of the primary advantages of choosing a small factory is its cost-effectiveness. Smaller spaces generally have lower leasing rates and operational costs, making them suitable for businesses with limited budgets or startups looking to minimise expenses.

Flexibility and Scalability

Small-scale factories offer flexibility, allowing businesses to adapt and grow at their own pace. With a smaller space, it becomes easier to make changes to the layout, optimise workflows, and accommodate evolving production needs. Additionally, small-scale factories are ideal for businesses that anticipate gradual expansion rather than rapid growth.

Efficient Operations

The compact nature of small factory promotes efficient operations. It enables streamlined workflows, reduces transportation time within the facility, and enhances communication and collaboration among the workforce. This can result in increased productivity and optimised manufacturing processes.

Industries that benefit from small-scale factories

Several industries find small-scale factories particularly beneficial for their operations. These industries include:

Technology Startups 

Small-scale factories provide startups with an affordable space to develop prototypes, test products, and begin production. The cost-effectiveness and flexibility of small-scale factories align well with the early stages of tech-based businesses.

Small-Scale Manufacturing

Industries such as artisanal products, speciality goods, and customised manufacturing often find small-scale factories suitable. These factories provide the space needed for production without excessive overhead costs.

The common belief is that most factories are huge and the leasing term must be long. This may have been the right thing in the past, but not anymore. 

Check out the top 3 industrial park projects in Northern Vietnam—CORE5 Hai Phong, CORE5 Quang Ninh, and CORE5 Hung Yen—to learn more about their model: supplying factory for lease with various sizes.

Factory for Lease with Various Sizes
A part of the CORE5 Hai Phong factory for rent. Photo from CORE5.

Medium-Sized Factories for Lease

Benefits and considerations of choosing a medium-sized factory space

Space for Growth and Production

Medium-sized factories provide businesses with adequate space for production activities while allowing room for growth. They strike a balance between small and large-scale factories, offering enough square footage to accommodate expanding operations without overwhelming businesses that are not yet ready for a large-scale facility.

Affordable and Scalable

Medium-sized factories often come with competitive leasing rates, making them an affordable option for businesses looking to expand. They provide a scalable solution, allowing companies to increase production capacity gradually as their operations grow.

Industries that find medium-sized factories suitable

Several industries find medium size factory for rent well-suited to their operational needs. These industries include:

Automotive Parts Manufacturing

Medium-sized factories provide ample space for automotive parts manufacturers to house production lines, assembly areas, and storage for finished products.

Electronics Assembly

The electronics industry often benefits from medium-sized factories, as they require space for assembling intricate components, testing equipment, and the storage of electronic goods.

Mid-Sized Manufacturing Operations

Businesses engaged in mid-sized manufacturing, such as consumer goods production or light industrial manufacturing, can efficiently utilise medium-sized factories. These factories provide the necessary space for production activities without overwhelming overhead costs.

Large-Scale Factories for Lease

Large-scale factories are suitable for high-tech, large-scale manufacturing industries.
Large-scale factories are suitable for high-tech, large-scale manufacturing industries. Photo from Pexels.

Advantages and potential drawbacks of leasing a large-scale factory

Ample Space for Expansion 

One of the primary advantages of a factory for lease with huge area is the abundance of space it provides. Large factories offer businesses the opportunity to accommodate extensive production lines, expansive warehousing, and distribution operations. This scalability allows for future growth and the ability to adapt to changing market demands.

Specialised Infrastructure and Equipment

Factory for rent with huge area often comes equipped with specialised infrastructure and heavy-duty equipment designed to support specific industries. This includes features such as high-load-capacity flooring, advanced HVAC systems, and specialised machinery. Such infrastructure can enhance operational efficiency and productivity in industries that require extensive resources.

Economies of Scale 

Leasing a big factory can provide businesses with the advantage of economies of scale. By operating on a larger scale, businesses can potentially reduce costs per unit and improve profitability. Bulk purchasing, efficient logistics, and optimised production processes can contribute to cost savings and competitive pricing.

However, it’s important to consider potential drawbacks, including higher leasing costs, increased maintenance requirements, and longer-term commitments associated with large-scale factories. Businesses should carefully evaluate their needs and long-term objectives before committing to such a significant investment.

Industries that thrive in large-scale factory spaces

Several industries benefit from the expansive space and specialised infrastructure offered by factory for lease with huge area. These industries include:

Automotive Manufacturing 

Large-scale factories provide automotive manufacturers with the space required for assembly lines, extensive storage, and advanced equipment to meet the demands of high-volume production.

Aerospace and Defence

The aerospace and defence industries require large-scale factories for manufacturing aircraft components, assembly operations, and specialised testing facilities.

Large-Scale Production

Industries engaged in mass production, such as consumer goods, household appliances, and textiles, benefit from the economies of scale provided by large-scale factories.

Leasing a large-scale factory offers numerous advantages, including ample space for expansion, specialised infrastructure, and potential cost savings through economies of scale. 

However, it is important to carefully consider the higher leasing costs, maintenance requirements, and long-term commitments associated with large-scale factories. Industries such as automotive manufacturing, aerospace, and large-scale production thrive in these spaces due to their extensive requirements.

By understanding the advantages, size range, and industry suitability of large-scale factories, businesses can make informed decisions that align with their specific needs.

Understanding the factory for lease with various sizes market – The Final Verdict

If you are a foreign business owner who has just come to Vietnam, it may be best to hire a local expert to assist you throughout the process. With years of experience in the industry as well as an in-depth understanding of the law, the language, and the culture, they will be able to analyse your demands and provide the best rental plan that optimises your budget among the many options of a factory for lease with various sizes.

Contact the industrial leasing expert for 1:1 consultation.

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