Warehousing and distribution are important links in the commerce chain and with online shopping seeming to grow annually, many businesses are taking another look at renting a warehouse or expanding their existing warehouse space. Indeed, e-commerce is anticipated to increase at a compounded annual average rate of 10% over the next five years, opening numerous doors for owners and developers of warehouse and distribution space. Commercial real estate development is taking a hard look at determining warehouse space needs and creating industrial warehouse space. Since 2000, the amount of occupied distribution and warehouse space has gone up by over 85% — a huge jump! And, the storage and warehousing leasing industry is one that employs over 165,000 people in the United States currently, and can be expected to be a reliable and growing employer over the next few years.
What are the Different Types of Warehouse Space Available?
Distribution and manufacturing warehouse buildings tend to be two of the most common types of industrial buildings that are part of the e-commerce chain. Distribution buildings are massive — as many as hundreds of thousands of square feet with high ceilings (sometimes as tall as 60 feet) to handle the various types of storage. Distribution warehouses need to have plenty of space in and around them as well for loading docks and for vehicles or other modes of transportation that are ferrying products to and fro.
Manufacturing warehouse space is created to store equipment where products are made. Storage isn’t the main object here, unlike at distribution warehouses, though they may have some space set aside. These spaces tend to be well climate controlled, ventilated, with good HVAC and exhaust systems, to make sure the equipment is kept at optimal quality. Floor drains and other special systems may also be put in place so that the manufacturing equipment can be used easily.
There are also spaces called “flex spaces” that combine the distribution and manufacturing spaces, along with administrative offices, to keep everything in one place.
How Does One Go About Renting a Warehouse?
Determining what kind of space you’re looking for is an important first step. Once you know that, you should determine your monthly budget, what kind of space you need, any special accommodations, and where you want to be located.
With all this in mind, it’s time to start looking into warehouse rentals or leases, which is made much simpler nowadays, thanks to the Internet. You’ll want to contact a commercial real estate agent to help you as well. From there, just like with residential real estate, you’ll want to visit the proposed spaces you’ve found to evaluate in person. Don’t be afraid to consider a few options — it can help make your negotiations tougher. Review your lease carefully and thoroughly and make sure that you have legal aid in reviewing your lease terms before signing!
Even if you’ve been through a million commercial leases before, you still want to make sure that you know exactly what the contract says before signing.
What are the Benefits of Renting a Warehouse?
Renting warehouse space means that you can increase your inventory, hopefully also boosting sales. You can also choose from a number of excellent locations — and if your business changes locations, when your lease is up, you too, can change with it and not have to worry about the money you’ve sunk into purchasing a space.
With a good location, products can be sent out for fast and cheap delivery when an order comes in and you can use the capital not sunk into a deposit in improving your business in other ways. You won’t have to worry about maintenance of the space — and in some cases, you won’t even have to hire warehouse employees.
If your business is rapidly expanding and you’re looking to grow, consider looking into a warehouse space for rent. Whether you need a distribution or manufacturing space, you’ll be able to find what you’re looking for with the help of a commercial real estate agent.