The cold storage units are the rooms that are built for storing the products in a cool place. The cold storage units are refrigerated that preserve the foods in a healthier way. Cold storage units have been established across the world. India is also preparing to establish massive numbers of cold storage units. There are around eight thousand cold storage units available in India. Every state has its fair share of distribution.
The number of cold storage units is increasing due to their high demand in the market. Keep reading the article to learn more about what is the rent for cold storage?
What is the Rent for Cold Storage?
The rent for the cold storage units depends on a lot of factors. Some of them have been given hereunder:
- The Demand for the Cold Storage Units. The demand for cold storage units has aided the demand for cold storage units. This has caused an increase in the rent for the cold storage units. So, the rates of cold storage units are higher these days.
- The Product is To Be Stored in the Cold Storage Units. Another determining factor of the cold storage unit’s price is the type of product. There are different types of cold storage units available. Some offer plus cool temperatures, while others offer minus temperatures. The cold storage units are the top-class units that offer higher rates for minus refrigeration.
- Estimation of the Rent. You must first assess the service that will be delivered in various scenarios. You must calculate the marginal cost, variable cost, fixed costs you want to recoup, etc. for numerous scenarios. For sake of simplicity, consider yourself a service provider alone. Storage space of x Cub M has been produced by you. Consider that you are anticipating a 50% space-only storage need that will increase over time. So, you will be renting the place after the estimation of all costs related to the establishment and its maintenance.
- The Size of the Cold Storage Unit. Another determining factor of the cold storage unit is its size. The rent varies for the small cold storage unit, medium-sized cold storage unit, and large-sized cold storage unit.
This blog is also worth reading for you:– Which liquid is commonly used as a cheap refrigerant in cold storage facilities?
The Rent Estimated For the Cold Strage
We have detailed the rent estimation for the cold storage units below. Here are the details:
- The Small-Sized Cold Storage Unit Rent. For a small cold storage unit, the rent ranges between 32000 and 70000. The cold storage units offer a minimum six months contract.
- The Rent for the Medium-Sized Cold Storage Unit. The medium-sized cold storage unit rent varies from the 1.5 lacs to three lacs. It depends on the type of product you would like to restore. So, rates only increase in case you want to store fragile products.
- The Rent for the Large-Sized Cold Storage Unit. The rent for the large-sized cold storage unit also varies between 900000 to 1500000. Again, the rent varies depending on the type of product you would like to store in the cold storage unit.
These are the rough estimates of the rent that can be charged for the booking of cold storage units. The cold storage units price can increase over time as the demand for the units is also increasing.
The rates for the cold storage units depend upon its size, the type of product to be stored, and the plant’s reputation in the industry. For small cold storage, owners charge a price under the 1 lac mark. For medium-sized cold storage, owners charge a price between 1.5 lacs and 3 lacs. For large-sized cold storage, owners charge a price between 9 lacs and 15 lacs.