Outgrowing Your Garage? How Minneapolis-St. Paul Small Businesses Find the Right Warehouse Space

Your garage stopped being a garage two years ago. Your basement looks like a distribution center. Your spouse keeps asking when they’ll get the spare room back.

You need actual warehouse space, but everything you find is either too big (5,000+ square feet you don’t need) or too limited (storage units with no power, no loading access, and rules that make running a business impossible).

Minneapolis-St. Paul has options for small businesses that need real warehouse space between 200 and 2,000 square feet. Here’s how to find it, what it costs, and whether it makes sense for your business.

Who Actually Uses Small Warehouse Space in Minneapolis-St. Paul

Small warehouse space works for any business that needs more than a garage but less than an entire industrial building. Here’s who benefits most:

Contractors and Trades

Minnesota has 143,000 construction jobs—up 10% since 2020. Electricians, plumbers, HVAC techs, general contractors, and specialty trades need space for tools, equipment, materials, and vehicle parking. You’re done working out of your truck, ready for proper inventory management and a professional base of operations.

What you need: Climate control for sensitive materials (critical in Minnesota winters), loading dock access for equipment and material deliveries, parking for work vehicles, space to organize tools and supplies by job, and secure storage for expensive equipment.

Typical space: 300-800 SF for solo operations, 800-1,500 SF for crews with 3-5 people.

Medical Device and Life Sciences

Minnesota is “Medical Alley“—the #1 health technology cluster in the world with 750+ companies employing 500,000+ people. Small component suppliers, assembly operations, quality testing labs, and specialized service providers supporting Medtronic, Boston Scientific, Abbott, and hundreds of others need space that meets quality standards.

What you need: Climate-controlled environment for temperature-sensitive components, clean workspace for quality operations, loading access for precise handling, organized inventory systems, and a professional address for customer visits.

Typical space: 500-1,500 SF, depending on operation complexity.

Light Manufacturing and Assembly

Minnesota has 7,085 manufacturers employing 435,859 workers—from 3M to small precision shops. Small-scale production, product assembly, custom fabrication, woodworking, or any operation where you’re making things. You’ve outgrown the garage workshop, but don’t need a 10,000 SF factory.

What you need: Power for equipment (220V for certain tools), adequate ventilation, space for material storage, workbenches and assembly areas, and room for finished goods inventory.

Typical space: 500-1,200 SF for small operations, 1,200-2,000 SF as you scale production.

Food Processing and Distribution

Minnesota is the headquarters to General Mills, Cargill, Land O’Lakes, and Hormel. The state produces more sugar beets, sweet corn, and green peas than anywhere in the country. Small food processors, specialty distributors, and suppliers supporting the food industry need proper storage and handling facilities.

What you need: Climate control (often mandatory for food products), loading dock access for pallet deliveries, racking for organized storage, and proper handling infrastructure.

Typical space: 400-1,500 SF, depending on inventory volume.

Service Businesses with Equipment

Mobile service businesses, event companies, equipment rental operations, restoration companies, cleaning services—any business that operates in the field but needs a base for equipment, supplies, and admin work.

What you need: Secure storage for expensive equipment, vehicle parking, climate control if storing electronics or chemicals, office space for admin work, and client meeting space.

Typical space: 300-600 SF for small mobile operations, 600-1,500 SF for larger operations with multiple vehicles and crews.

What You Want Included in Minneapolis Small Warehouse Space

Size Flexibility

Your space needs will change as your business grows. Look for facilities that offer multiple unit sizes or easy expansion options. You don’t want to be locked into 500 SF when you suddenly need 800 SF in six months.

Ideal: Lease terms that allow you to size up or down with 30-60 days’ notice without penalties.

Loading Dock Access

If you’re receiving pallets or moving heavy equipment, loading dock access is non-negotiable. Hand-carrying materials through parking lots wastes hours and increases the risk of injury.

Drive-in docks (where you can back a vehicle directly into the building) are suitable if you don’t receive full semi-truck deliveries. Standard loading docks handle semi-trucks, box trucks, and everything in between.

Climate Control

Minnesota hits -20°F in winter and 90°F+ in summer. Standard warehouse buildings without climate control follow outdoor temperatures—your space becomes a freezer from November through March and an oven in July.

If you’re storing anything temperature-sensitive (electronics, medical components, food products, certain materials), climate-controlled warehouse space in Minneapolis-St. Paul is mandatory.

Power and Electrical Capacity

Most small warehouse spaces include basic electrical (120V outlets). If you’re running equipment that needs 220V or higher amperage, verify the electrical capacity before signing a lease.

Ask: How many amps per unit? Where are outlets located? Can you add circuits if needed? Who pays for electrical work if you need upgrades?

Security Features

Your equipment, inventory, and materials represent a significant investment. Look for:

• 24/7 building access with key card or code entry
• Security cameras in common areas
• Individual unit locks you control
• Well-lit parking and entry areas
• On-site management during business hours

Parking and Vehicle Access

If you’re running work vehicles, equipment trailers, or need to load/unload frequently, parking matters. How many spots do you get? Can you park trailers overnight? Is there truck access for larger vehicles?

Shared Amenities That Actually Matter

Conference rooms for client meetings. Kitchen area for your team. Restrooms that don’t require walking across a parking lot. WiFi included vs. having to set up your own internet. These extras add up in both cost and convenience.

Minneapolis-St. Paul Neighborhoods for Small Warehouse Space

The Twin Cities industrial market runs at 4.2% vacancy—the 5th lowest in the country. Small-bay space under 5,000 SF is even scarcer. Here’s what different neighborhoods offer:

Eden Prairie / Golden Triangle

Best for: Businesses serving the western suburbs, companies wanting a premier address, medical device suppliers

The Golden Triangle Technology Park represents the Twin Cities’ top-tier southwestern industrial submarket. Located along I-494 with direct access to Highway 212 and Highway 169, you’re 20 minutes from both downtown Minneapolis and MSP International Airport.

What it offers: Professional business environment, modern facilities, excellent highway access, amenity-rich surroundings (restaurants, retail within minutes). Strong concentration of medical device and technology companies.

Trade-off: Premium pricing—Eden Prairie runs higher than most Twin Cities submarkets but delivers quality and accessibility to match.

WareSpace Eden Prairie is located at 7500 Golden Triangle Dr.

St. Paul Midway

Best for: Businesses serving the entire metro, central positioning

St. Paul’s Midway district sits equidistant from both downtowns—roughly 10 minutes to either Minneapolis or St. Paul. Highway 280 and I-94 provide immediate interstate access.

What it offers: Central metro positioning, industrial character with creative/artisan business community, walkable to restaurants and Green Line light rail. Mix of historic and functional buildings.

Cost positioning: Moderate—more affordable than Eden Prairie and western suburbs while providing better access than outlying areas.

Trade-off: Building stock varies widely in quality. Some properties offer modern amenities; others show their age.

WareSpace St. Paul is located at 801 Transfer Road.

Bloomington

Best for: Businesses with heavy shipping needs, air cargo operations

Bloomington’s industrial corridor benefits from direct proximity to MSP International Airport—often under 10 minutes. The I-494/I-35W interchange provides excellent highway access.

What it offers: Airport proximity, distribution-focused infrastructure, and competitive pricing compared to western suburbs.

Trade-off: Traffic congestion around the Mall of America, somewhat dated building stock.

Northeast Minneapolis

Best for: Creative/maker businesses, urban industrial aesthetic

Northeast Minneapolis has the metro’s lowest vacancy at 3.3%—space here is genuinely scarce. The area mixes industrial heritage with a trendy arts and brewery scene.

What it offers: Downtown Minneapolis proximity, creative community, urban character.

Trade-off: Extremely tight market, premium pricing, limited options under 2,000 SF.

What Small Warehouse Space Actually Costs in Minneapolis-St. Paul

200-400 SF: $550-900/month all-inclusive for co-warehousing, $250-400/month base rent for traditional leases (before NNN, utilities, equipment)

400-800 SF: $900-1,400/month all-inclusive, $400-700/month base rent traditional

800-1,500 SF: $1,400-2,200/month all-inclusive, $700-1,200/month base rent traditional

1,500-2,000 SF: $2,200-3,000/month all-inclusive, $1,200-1,700/month base rent traditional

Traditional leases look cheaper upfront, but you’re adding 30-40% for NNN/CAM charges, utilities that spike in winter, upfront equipment costs ($2,000-5,000), and 3-5 year commitments.

All-inclusive co-warehousing costs more monthly but includes climate control, loading docks, equipment, WiFi, conference rooms, flexible 6-12 month terms, and no surprise bills.

Traditional Warehouse Lease vs. Co-Warehousing: Which Makes Sense?

Go with traditional warehouse lease if you’re:

• Confident about space needs for 3+ years. If you know you’ll need 1,000+ SF long-term, traditional leases save money over time.
• Operating with minimal margin. If every dollar counts and you can’t absorb extra monthly costs, traditional leases cost less.
• Comfortable managing facilities. You’re willing to call contractors for repairs, pay multiple vendors, and handle building issues yourself.
• Not seasonal. Your space needs stay consistent year-round, so lease flexibility doesn’t matter.
• Already own equipment. You’ve got racking, pallet jacks, and warehouse equipment from a previous location.

Go with co-warehousing if you’re:

• Growing and space needs are changing. You might need 500 SF today, 800 SF in six months, and 1,200 SF next year.
• Seasonal with fluctuating needs. Scale up for busy season, scale down during slow months without breaking a lease.
• Avoiding upfront capital costs. You’d rather not drop $3,000-5,000 on equipment and deposits.
• Valuing your time. Managing contractors and building issues costs more in opportunity costs than the premium for all-inclusive pricing.
• First time leasing commercial space. Co-warehousing eliminates the learning curve and protects you from expensive mistakes.
• Need a professional setup immediately. Conference rooms, kitchen, shared equipment—everything’s ready when you move in.

Finding Small Warehouse Space for Rent in Minneapolis-St. Paul

Traditional commercial real estate brokers mostly focus on spaces over 5,000 square feet. If you’re looking for 200-2,000 SF, you need to target:

Co-warehousing and flex space providers – Purpose-built facilities offering smaller units with shared amenities and flexible terms.

Small-bay industrial buildings – Older industrial buildings subdivided into smaller units. Often owner-managed. You’ll find these on LoopNet, Crexi, and with local commercial brokers.

Craigslist and Facebook Marketplace – Surprising number of small warehouse spaces listed directly by owners who aren’t using traditional brokers.

Drive the industrial areas – South Minneapolis, Midway, Northeast. Look for “For Lease” signs. Many small spaces never get listed online.

WareSpace Minneapolis-St. Paul has two locations:

• Eden Prairie (7500 Golden Triangle Dr) – I-494 corridor access
• St. Paul Midway (801 Transfer Road) – Central metro positioning

Both offer 200-2,000 SF climate-controlled warehouse units with all-inclusive pricing and 6-12 month flexible leases. Everything’s included—loading docks, equipment, WiFi, conference rooms, kitchen, 24/7 access.

Small Warehouse Space FAQs for Minneapolis-St. Paul

What’s the smallest warehouse space I can rent in Minneapolis-St. Paul?

Most traditional warehouse spaces start at 1,000-2,000 SF minimum. Co-warehousing facilities like WareSpace offer units as small as 200 SF, which works for solo contractors, small assembly operations, or businesses just transitioning from home-based.

Can I run a business from a Minneapolis warehouse space?

Yes, but check zoning and lease restrictions. Most industrial-zoned warehouse spaces allow business operations. Some restrict retail, customer visits, or certain manufacturing types. Read your lease carefully—some landlords prohibit businesses that generate truck traffic or have clients visiting.

Do I need insurance for my Minneapolis warehouse space?

Most leases require general liability insurance ($1-2 million coverage) naming the landlord as additional insured. You’ll also want contents insurance for your equipment and inventory. Budget $500-1,500 annually for coverage.

Why is climate control so important in Minnesota?

Minnesota’s temperature swings from -20°F to 90°F+, destroying products, damaging equipment, and making working miserable. Without climate control, your warehouse follows outdoor temps—your space becomes a freezer from November through March. Climate control isn’t optional for most operations in the Twin Cities.

How long are warehouse leases in Minneapolis-St. Paul?

Traditional commercial leases typically require 3-5 year commitments. Month-to-month options exist but are rare and expensive. Co-warehousing facilities typically offer 6-12 month leases with flexibility to adjust space size.

What’s included in “all-inclusive” warehouse pricing?

At WareSpace and similar facilities: property taxes, building insurance, common area maintenance, utilities (including heat—significant in Minnesota), WiFi, loading dock access, industrial racking/shelving, equipment like pallet jacks, security systems, conference rooms, kitchen, and on-site management. One monthly fee covers everything.