Renting Versus Buying Warehouse Spaces

Renting Versus Buying Warehouse Spaces

Commercial warehousing

You can consider manufacturing and storage the unsung heroes of the business world. No matter what kind of business you run — whether you’re selling medical supplies or cosmetics — products have to be manufactured and stored. Large companies have massive warehouses across the world, filled to the brim with products being made and kept, ready for sale and distribution. The issue of manufacturing and storage is a bit more difficult for small businesses. Even if they aren’t startups and have their feet in the business world already, small business owners don’t often have the need for the same massive manufacturing and storage warehouses that are used by the titans of industry. But they do need space, and finding a warehouse to rent can be easier said than done. For that matter, some aren’t even certain that they should rent at all — a manufacturing warehouse space for sale can be quite tempting. But there are many reasons why renting a warehouse is the best choice for most small businesses, and we’ll get into them below. Let’s look into why you might need a manufacturing warehouse space, and how you can find the best space for your specific business needs.

Why We Need Manufacturing Warehouse Spaces

The fact is that the manufacturing, storage, and distribution industries have always been present — but they’re growing, and continuing to do so at a rapid rate. In fact, 166,907 American men and women are currently employed in the storage and warehousing industries. Why is this? Well, for one thing ecommerce has rapidly taken over the business world. While brick and mortar stores still exist, ecommerce businesses have more of a need for storage and distribution because their products are moving directly from warehouses to their clients and customers. Right now, it’s expected that ecommerce will grow at a compounded annual rate of 10% over the next five years. This will create amazing opportunities for the owners and developers of warehouse and distribution spaces. It’s no wonder that, since 2000, occupied distribution and storage spaces have increased by 86.2%. With that being said, the need for manufacturing warehouse spaces shouldn’t be overlooked. Although ecommerce stores need to store their product, of course they also need to make it — and at a much faster rate than those that sell their products in brick and mortar stores do. For that matter, some companies are able to manufacture and storage their products in the same space. But the next question is — if you know that you need warehouse space, why should you rent it rather than buying it?

Renting Warehouse Space Versus Buying It

The commercial real estate development industry is booming, and with it comes many different spaces for lease. There are office leases, which many are more familiar with. But commercial warehousing can be leased as well — and it should be leased rather than bought. There are a number of reasons why commercial warehouse is a smarter “rent” than “buy”. For one thing, the business world is always uncertain. Commercial warehouses are not small spaces, and they tend to be expensive to buy. Should your business fail or move to another area, you’re still stuck with the warehouse space you bought. A lease agreement, on the other hand, can be broken or waited out. Another great thing about leasing is that it lets you save money — if your business succeeds, then you can take the money you’ve saved and invest it in another rental space, allowing you to expand your business.

Determining Warehouse Space Needs

Not every business owner has the same warehouse space needs. By determining your needs first, you’ll be more likely to choose the right space. A storage space should be roomy, airtight, and clean. A manufacturing space should be similar, but in some cases comes with the equipment necessary to manufacture the products you need — which will certainly be a plus. Be picky; even if you rent, you’ll be stuck with this space for a long time.


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