The world of online buying and selling has taken the world like a wildfire in recent years, and a whole ocean of products have since become trends that have come and gone. Because the process has become so streamlined, it can feel as though any transaction we make is like magic. At just the push of a button, we can get an item we saw online to our doorstep, sometimes with same-day delivery.
Because of this, the demand for warehouse spaces has skyrocketed in plenty of industries. If you belong to one of these, you’re probably wondering to yourself: “When should I be getting warehouse space?” In this article, we’ll provide you with a guide that can help you make an informed decision when it comes to the right time to make that big move.
When is the Right Time to Move?
The answer to this question will, of course, depend on you and your business. You can answer this question simply by observing your current space. If you can’t find something you need, or if there’s simply no space left for your staff to walk through anymore, then you obviously need to expand your space. Knowing when your space is too small is a big indication that you should start looking into warehouse options, and consider which will give you the biggest advantage.
How Much Space Do You Really Need?
Another factor that needs to be taken into account when making the decision to move is the amount of square footage you need. This will depend on how many products you ship and receive, how big your inventory is, and how things move in and out of your business. From these figures, you can estimate the actual width, length, and height of the space you need. It’s also best to make use of every square foot of the space rather than just the floor area, in this way you can maximize all the functions of your business. By having an idea of how much space you need, you’ll be able to start the process of looking for a warehouse that can cater to your business’ needs.
How Much Do You Plan to Grow?
Depending on your products, you may anticipate a large amount of growth over a small amount of time. And while some people may say that you’re being optimistic, it’s always best to be prepared for when such things happen. When you find that you’re always hitting goals and sales quotas, this may be a good time to start considering leasing warehouse space for your e-commerce business. Of course, this ties into how much space you need, so be sure to plan according to how much expansion you might have in the future. You obviously don’t want to exceed your budget, but as a general rule of thumb, it’s better to have space and not need it than need it and not have it.
The Demands for Warehouse Spaces
Since the rise in e-commerce services, it has had a significant impact on prices for industrial real estate. Because of this, demand for warehouse space has also increased, along with the need for suitable industrial properties. Another reason for the all-time high prices on warehouse rentals is because the e-commerce industry tends to require more space compared to other businesses. According to research reported by The New York Times, this industry usually needs three times more space compared to a traditional business. So be sure to make your move before such spaces become even more expensive.
Whether for a product distribution warehouse or for storage purposes, you need to have a plan for leasing a warehouse space that can support your thriving business. And because experts estimate that these will have an expansion of 10% in the next few years, it’s best to get your own rental competitors beat you to them. However, before entering a lease agreement, it’s best to really think about whether now is the right time for you to make a move. As explained in the points above, that is best answered by the stage you’re at in your business, and no one will know that better than you.
Looking For Warehouse Space?
Schwarz Properties specializes in commercial and residential property management in Virginia, South Carolina, and North Carolina. We lead the market for industrial and warehouse spaces for lease and our portfolio also includes retail space, restaurant space, residential, office space, and many more. Please contact Schwarz Properties at 336-895-1336 or visit our website.