As an entrepreneur, managing your small business budget is crucial. So, let’s reframe the question you often ask yourself: “How much does a small warehouse cost?” Instead, let’s focus on the immense value and potential savings that come with choosing the right small warehouse space for your business.
Factors That Empower Your Small Warehouse Space Decision
When it comes to rental costs, several factors can influence the price of a small warehouse space. By understanding these factors, you can make an informed decision that aligns with your budget and business goals.
Floor Space: The Right Fit
Square footage plays a significant role in determining the cost of renting a small warehouse space. Typically, rates are based on the size of the space, meaning larger areas will have higher rental costs. However, it’s important to be mindful of your actual needs. Opting for a smaller warehouse space that fulfills your current requirements can save you money. Consider it an investment in your business’s financial stability. By choosing a space that matches your needs, you can redirect the saved funds toward future growth opportunities.
Base Rental Cost: Market Dynamics
Just like the real estate market, the rental costs of small warehouse spaces can vary depending on location, demand, and availability. It’s essential to assess the local commercial and industrial real estate markets when comparing different options. In areas with fewer warehouse vacancies, the base rental cost may be higher due to increased demand. However, don’t let scarcity cloud your judgment. Exercise discernment and explore multiple options before signing a lease. A thorough evaluation should include factors beyond the base rental cost, such as square footage and additional fees. This approach ensures you find a small warehouse space that perfectly suits your business needs. At WareSpace, our rental rates are simple and affordable. We also include all of our amenities in our rental pricing so that there are no surprises. It’s all inclusive pricing at WareSpace!
Additional Fees: Know What’s Included
When considering rental costs, it’s crucial to inquire about any additional fees associated with the small warehouse space. Some facilities may require tenants to pay for utilities separately, while others offer all-inclusive packages. By choosing a space that provides a simplified billing structure encompassing security, utilities, and rent in one monthly payment, you can streamline your expenses and avoid surprises.
Moreover, keep in mind that larger warehouses typically have higher operating costs due to increased utility usage. It’s worth understanding whether additional fees are included in the rent or billed separately. Look out for terms like “NNN” (net, net, net) or “CAM” (common area maintenance) in the lease, as they may involve additional costs related to property taxes, insurance, or maintenance charges. At WareSpace, our pricing includes everything so there are no hidden nor surprise fees.
Ask the Right Questions, Make Informed Decisions
Before committing to a small warehouse space, it’s essential to ask relevant questions regarding the total cost. This practice allows you to anticipate expenses and avoid unexpected financial burdens down the line. Consider inquiring about the following:
- Repairs: Who is responsible for covering repair costs?
- Utilities: Are utilities included in the rent or billed separately?
- After-hours climate control: Will there be additional expenses for heating or cooling during non-business hours?
- Shared areas: Does the square footage include access to common areas within the warehouse space?
- Equipment maintenance and upgrades: Who bears the costs of equipment replacement or upgrades within the warehouse space, such as racking or electrical outlets?
- By addressing these questions, you ensure transparency and gain a comprehensive understanding of the financial obligations associated with renting a small warehouse space.
When you book a tour at our locations, you’ll talk with a WareSpace expert that will give you a thorough walk-thru of our location and answer all of your questions.
Unlock the Potential of a Small Warehouse Space with WareSpace
At WareSpace, we understand the importance of affordability and simplicity when it comes to small business warehouse solutions. Our approach offers you the opportunity to maximize your rental dollars by providing all-inclusive pricing. From loading docks to security and utilities, everything is bundled into a single monthly payment. With WareSpace, you won’t have to deal with a mountain of bills. We have simple billing and great support at all of our WareSpace locations. Find out more about our small warehouse spaces and how you can get the storage your business needs at WareSpace.
Businesses of all sizes now recognize the flexibility and growth potential they have by using small warehouse spaces. Consequently, demand for these smaller storage spaces has skyrocketed to rates almost double that of larger facilities. This increase in small warehouse demand stems from the benefits these compact spots bring to both large and small businesses. Large companies use several of these small facilities to create local fulfillment centers. Small businesses that currently operate out of homes gain extra room needed for growth by moving to small warehouse spaces.
Does your small business need space to pivot into future growth? Embracing the small warehouse model may be the solution you need.
Embracing the Small Warehouse Model
Bigger is not always better when it comes to storage facilities. Both large and small companies recognize the business benefits of small warehouses. These perks, however, depend on how the business makes use of the space.
Small Businesses and Small Warehouse Spaces
Your small business can enjoy several advantages by moving into a small warehouse space. When starting a business from your home, you can only store as much inventory as will fit into any space you have available. After some time, you will inevitably run out of room for your products, restricting any growth.
A small warehouse facility offers a solution for growth stagnation concerns that stem from a lack of space. By using the space exclusively for your business, you free your home from work activities and stock. Your family does not have to sacrifice your personal space any longer to hold your business’s inventory.
Additionally, your small business will have more room for product storage in a warehouse. With industrial-grade racking in your warehouse, you keep your stock properly organized and safely stored, allowing for fast order fulfillment.
Effective use of these spaces provides small businesses with extra space necessary for growing inventory offerings or improving the organization of existing stock: the possibilities are endless. Most small warehouses, such as WareSpace, offer more vital amenities besides an increase in storage and organization. Visit our amenities page to see exactly how WareSpace can help you.
How Large Businesses Leverage Small Warehouse Spaces for Shorter Deliveries
The driving factor behind large companies embracing small warehouse benefits is the need to cut delivery times from days to hours. Among shoppers, 80% want same-day delivery and 61% want even shorter two-hour shipping times. To meet these consumer demands, larger companies have needed to rethink using only large distribution centers.
By investing in small warehouse facilities to serve as local fulfillment centers across the country, large companies can shorten the time consumers wait for their orders. In fact, by 2028, 40% of retail companies expect they will offer two-hour delivery to customers. The best way to achieve this goal is through using a system similar to DoorDash for products ordered online. This crowdsourced delivery method would couple with local small fulfillment centers to reduce delivery times to only hours after placing an order.
By shrinking delivery times, large businesses that use small warehouse spaces as local fulfillment centers gain an advantage over the competition in deliveries.
What Does the Future Hold for Small Business Warehousing?
As you work toward building your small business today, you should also look at how you can attain growth tomorrow. Small warehousing growth is already a trend today that will likely continue in the future.
With consumer prices dropping at the end of 2022 for the first time in two and a half years, inflation appears to finally start letting up. With light at the end of the proverbial tunnel in view, you may feel confident enough to invest in the future of your business. Finding a small warehouse space for rent could help you gain adequate space to allow for the growth your small business deserves.
Another reason to transition from your home into a warehouse in 2023 is the future of industrial construction. During 2023, construction groundbreaking has an anticipated decrease of up to 50% following the record-setting building of industrial facilities in 2022. By 2024, this slower building pace will result in fewer available new industrial spaces, which could trigger higher rental prices, depending on demand. So if you want to find a small warehouse space for rent for a reasonable price, now is the time to do it.
Digital Tools for Warehouse Spaces
Within the storage facilities themselves, changes will also occur. Both large and small businesses will need to use more digital tools within their warehouse spaces to remain competitive. By 2028, warehouse management systems (WMS) will likely become more commonly used with 97% use, which reflects a massive increase from the 44% application today. Devices like tablets, handheld computers with barcode readers, and portable barcode scanners will likely reach similarly high levels of use in warehouses by 2028.
These digital tools help businesses use their small warehouse spaces more effectively. With WMS software, you no longer have to manually reorder inventory items that sell out; the system can do it automatically. WMS systems can also keep inventory numbers updated when combined with scanning tools. Barcode scanners or tablets can improve accuracy by ensuring that only the correct items leave the shelves when putting together orders.
With an increasing number of large and small businesses recognizing the benefits of smaller storage solutions, the availability of smaller storage spaces may become more limited. Now may be the best time to upgrade your business to a small warehouse space to better prepare for your business needs in your future expansion.
Who Can Benefit the Most from Renting Small Warehouse Space?
While large companies can gain an edge with shorter delivery time, small businesses that move into warehouse space see the most significant returns. Your small business gains access to professional storage and shipping options with a small warehouse space. You can use a loading dock for sending or receiving even larger deliveries than you could by working from home. Plus, you have more storage space for keeping a larger stock. Growth through increased sales becomes possible with well-used small warehouse space.
Retail and ecommerce businesses are not the only types of small operations that can enjoy small warehouse benefits. All types of companies from ecommerce to nonprofits to light manufacturing can use the extra room in a small warehouse space to their advantage.
For instance, service companies have access to storage space for their tools and products. In fact, moving into a small warehouse space could allow for the sale and installation of larger items. A plumbing service company could begin selling water heaters to homeowners and stocking them in the warehouse. Having these products readily available reduces installation time and grows your satisfied customer base.
Any type of small business can tap into growth potential by accessing the extra space and amenities of a small warehouse for rent.
Is Your Small Business Ready for Big Growth Potential?
Does your small business feel constrained by your current location? Give your company room to grow by upgrading to a small warehouse space. With WareSpace, you have the perks of both a shared office and warehouse space, which can include access to a conference room, loading dock, and kitchen. Make your move now to open your business to future growth. Check us out at WareSpace to find the perfect small warehouse space for rent.
