There are different types of warehouses, which include dedicated and shared options. These options allow large and small companies to find the storage space to match the size of their inventories. In 2022, 33.2 million small businesses in the U.S. opted for small shared warehouse space to avoid the overhead cost of dedicated warehousing. Is a small warehouse space for rent the best solution for your business? Let’s weigh the pros and cons of this storage option to decide.

What Is Shared Warehousing?

Shared warehousing presents small businesses with a solution for inventory storage with minimal overhead. These facilities offer varying sizes of space with prices that often directly align to how much of the warehouse space is used. Businesses renting space spread the operating costs of the warehouse among themselves.

The shared model of space use allows businesses to access full-featured warehouses without the costs and management concerns of dedicated warehouses.

Pros and Cons of Renting a Shared Warehouse Space

Renting a shared small warehouse space is an investment. As with all business decisions, choosing whether to use a small shared warehouse space should start with weighing the pros and cons.


Cost is always crucial when making decisions for small businesses. Small shared warehouse spaces have lower costs to rent as compared to buying or renting a dedicated warehouse or large space.

Rental prices for these spaces relate to the amount of space used. Businesses that opt for a small warehouse space for rent instead of a large space pay the least while still taking advantage of all the amenities in the facility.

Facility Amenities

Shared warehouse spaces have amenities often seen in shared offices and larger warehouses. However, because all tenants share the costs of these features and the facility’s operations, the price is affordable. Amenities vary depending on the shared warehouse space company. Small businesses should look for loading docks, racking, warehouse equipment, conference spaces, on-site security, limited access to storage areas, and package receiving.

Flexible Space Use

Small businesses need the flexibility to meet their changing needs as they grow or have seasonal ebbs and flows in sales. Shared warehouse spaces adapt easily to these needs. With easy rental terms in as little as six months, businesses have the flexibility to choose storage spaces based on their needs.

A seasonal surge may require temporary storage of more goods. In this instance, the business can upgrade to a larger warehouse space for a short time. A business that doubles its inventory and sales during the holiday season may temporarily need a larger facility. When inventory levels decrease, they can return to a smaller storage facility to save on costs. Shared warehouse spaces allow this type of flexibility.

Lack of Control Over the Facility

While choosing a small shared warehouse space for rent has numerous perks, it does have a downside. A lack of control over the facility’s operations means going through the site manager for all decisions. For small businesses, not having full control over the facility is ideal because the business owners can focus more on running their businesses instead of operating a warehouse.

Space Competition

Another concern with shared warehouse facilities is the competition for storage space. These sites have a finite amount of space that can only serve a limited number of businesses. Once the facility has reached capacity, those needing small warehouse space will need to go elsewhere.

Space competition is not only an issue with shared warehouses. Even large, dedicated warehouses face supply issues. At the end of 2022, despite record-setting industrial space construction, vacancies remain very low. The national vacancy as of November 2022 was 3.8% with even lower rates in specific markets, such as Nashville with a 1.2% vacancy.

How Does a Small Shared Warehouse Space Compare to a Dedicated Warehouse?

While businesses can choose to rent either shared warehouse space or a dedicated facility, the two options have distinct differences. A dedicated warehouse only serves a single business; whereas, a shared facility has lower costs and less commitment but serves multiple businesses under one roof.

Costs of Dedicated Warehouses

Some businesses purchase their dedicated warehouses. Buying this property gives the company total control over the use of the warehouse and its operations. The owner must pay all utilities and management costs. The purchaser also gets equity from the property against which the business can obtain loans. Rising property values increase the chances of making a profit on the warehouse after selling it, too.

Buying a dedicated warehouse is not the only option for companies. Some will rent the space. However, renting turns over operations to the landlord. Due to the large size of dedicated warehouses, the rental cost tends to be much higher than with shared warehouse spaces. Businesses that cannot use all the space in a dedicated warehouse will waste money withexcessive rental costs.

Costs of Shared Warehouses

Shared warehouses don’t come with the costs of purchasing a large property. Instead, renting a shared warehouse has rates related to the space used.

A small warehouse space has the most affordable rental rate. This option is best for small businesses getting their first warehouse spaces. Larger warehouse spaces are suitable for future growth or seasonal inventory surges.

Rents for small warehouse spaces also include all the utilities, management costs, and equipment use bundled into a single price. Buyers of dedicated warehouses must pay for each of these separately.

Small business owners have more to concern themselves with than operating every aspect of their warehouse. The bundled rental rates of shared warehouse spaces make using professional storage easy and accessible for businesses of all sizes.

Commitment Required for Using Dedicated Warehouses

Commitment is another difference between a shared small warehouse space and a dedicated warehouse. Those purchasing or renting dedicated warehouses tend to have very long leases. These terms often require the business to commit to the space for years.

Commitment Needed for Renting Shared Warehouse Spaces

Shared warehouse spaces have flexible commitments with rental terms lasting as little as a few months. This flexibility allows businesses to switch to a larger or smaller space based on their sales.

For small businesses that require flexible terms and short commitments, shared warehouse space for rent is the best option.

Are You Ready to Find a Small Shared Warehouse Space for Rent?

Does your business need the benefits of a small warehouse space? Do those perks outweigh the downsides of renting a shared warehouse?

Ensure that you find a shared small warehouse space for rent that has all the features your business needs. Check out WareSpace to learn about our warehouse space offerings and the amenities that come with all rentals.

Partner with us at WareSpace to get the facilities your company needs to grow and thrive in today’s bustling economy based on small business success.