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Argentine textile firms prefer to rent, not buy warehouses
Apr '12
Textile and garment companies, especially small and medium-sized enterprises (SMEs), in Argentina are choosing to rent warehouses instead of buying them.

The SMEs are using the money to invest in brand advertising and promoting apparels instead of building on assets, according to a report on industrial properties.

Several of the over 10,000 enterprises in San Martin, one of the major textile centres in the Buenos Aires of Argentina, work from a rented property instead of their own.

The report released by Property Management says the textile sector is one of the major players in the industrial real estate market in Argentina.

The textile and apparel sector utilizes rented premises to stock yarn and to install sewing machines. These firms require space of more than 500 sq m. Moreover, these companies also need open space for land transport and sufficient height in buildings.

Smaller firms sometimes operate garment units from old houses or barns, according to the report. This phenomenon can be observed in the suburban areas of Lanus, Quilmes and Avellaneda.

Fibre2fashion News Desk - India

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