Finding the perfect warehouse space for you can be quite a challenging, long process. Renting a warehouse comes with a lot of variables to think about and decisions to make. Though a rental warehouse space is often more affordable and available than purchasing a full warehouse, financially planning around your budget is still necessary. With a rental warehouse space, you may not have as much control as you would owning a warehouse, but a warehouse lease comes with its own advantages.
Renting a warehouse means the lease will end at some point, so how long should you rent your warehouse space for?
Purpose for Renting
Understanding or coming up with a plan for how you will use your rental warehouse space will benefit you while determining the timeline for your lease. Industrial spaces can be classified into three categories, warehouse space, manufacturing space, and mixed space.
A warehouse space is usually used for storing products and equipment, whereas a manufacturing space is used to create and build products. A mixed warehouse space is a combination of both of those. Decide which category your situation falls under. If you’re planning to utilize your rental warehouse space for storage, it will help you decide how long you should rent your warehouse space for. Some questions to consider:
- Will you sell out of your inventory or plan to restock?
- If you are looking to completely sell out of your inventory, you may be able to utilize a shorter lease for your rental warehouse space, since you won’t be restocking your inventory.
- Is your stock easily moved or transportable?
- If you have heavy or messy inventory that can be a hassle to transport, it may be worthwhile looking into longer leases for your rental warehouse space.
- Is your inventory seasonal?
- If you have seasonal products in your inventory, try to time your warehouse lease with the season your products will be popular in. For example, storing holiday-related items during the off-seasons will be beneficial if your lease ends right as you would be removing the inventory anyway.
- Will you be doing any manufacturing in this space?
- If you plan to use your rental warehouse space to manufacture any products, it may be beneficial to have a longer lease. That way, you can ensure you’ll have time to set up your equipment and time to produce a large amount of quality items.
Define the Details
Understanding how you plan to use your rental warehouse space will narrow down the specific details to help you search for the actual warehouse space. You’ll need to determine the size of the space you’ll need, a good geographical location in relation to your business and industry, monthly budgets, and warehouse features you’ll need, such as loading docks, storage shelves, etc. You may not be able to meet every single one of these stipulations, but keeping them in mind and getting as close to the perfect warehouse as you can get for your needs will save you from potential shortcomings later down the road.
A typical warehouse lease lasts an average of 5 years. Manufacturing warehouse spaces for rent typically have longer contracts, since manufacturers plan to stay in one spot for a period of time. A company providing a rental warehouse space is still looking to make a profit, and they tend to make more money with longer-term contracts. Therefore, it may be difficult to find a short term rental warehouse space that fits all of your needs. Companies leasing warehouse spaces are more likely to work with clients who plan to stay in the space for a longer period of time, and will be more willing to change the space to accommodate your business’s needs.
Schwarz Properties specializes in warehouse spaces, as well as residential and commercial property management in Virginia, and North and South Carolina. Contact us through our website or by calling 336-895-1336 today!