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Mangaf fire sparks storage space rent hikes, Impacting small business owners

IIK Staff Reporter Sunday, June 23, 2024
Mangaf fire sparks storage space rent hikes, Impacting small business owners

The aftermath of Mangaf fire tragedy cast a dark shadow on the owners of small and medium enterprises as the demand for legal storage spaces increases following wide spread inspection on illegal basement storage.

The past few days witnessed an increase in demand for warehouse spaces as many business owners seek alternative storage solutions., after the investment sector witnessed a government campaign to close them for purposes other than their intended use.

The sudden surge in demand for licensed warehouses has led to a significant rise in rental prices of commercial warehouse, with many areas seeing increases of 25 to 40 percent, depending on the type of warehouse.

The aftermath of the Mangaf fire and the enforcement of safety regulations have significantly impacted the livelihoods of many expatriates in Kuwait. Many Small and Medium Enterprises (SMEs) use basements as warehouses for their goods, some of which are highly flammable. This practice endangers all residents in the building. The short notice to clear basements within 48 hours has placed SME owners in a difficult position. Switching to highly priced commercial warehouse property is not an option for many due to insufficient profit margins.

“I offer my goods at very competitive prices with a small margin. With that profit, I can’t afford commercial warehouse space. The rent for a legal warehouse is more than my annual profit,” said the owner of a basement-using business. “I understand that safety and life are more valuable than money. But shutting down small businesses with a 48-hour notice without any alternatives leaves my family and me in a difficult situation,” he added. Shifting to a legal warehouse with higher rent raises concerns that the increased costs may be passed on to the final customer, leading to higher prices for goods.

While the practices of using investment buildings as storage space, compromise tenant safety, they underscore the need for competitively priced warehouse facilities for SMEs that adhere to safety measures.


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Express your comment on this article

 
Salam Raja
Sunday, June 23, 2024
very very bad situation for small and medium-sized businessmen.
basement storage should be allowed with strict rules.

LJN
Sunday, June 23, 2024
Our company is willing to rent approved commercial warehouse area of approximate 2,000 Sq.Ft (except for food stuff storage) in Ardiya Industrial Area, Block 2, Building No.261, Kuwait.
Interested company can contact #######1


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