There are very successful warehouse businesses and distribution centers that have grown around the need for storage and distribution for small and medium-sized businesses. However, buying a warehouse is very expensive and comes with many additional expenses and responsibilities that you may not be prepared for as a growing business. If you consider renting warehouse space for your business, here are five things to consider before signing a lease.
What kind of security is provided?
You need to ensure your investment will be protected from theft and vandalism, so you need to find out what kind of security the warehouse has. You need to ask about their alarm system, how it works, how people gain access to the building, who will have access, whether the alarms are directed to law enforcement when activated, what kinds of cameras they have, and where the security cameras are located.
There are a few questions you should consider before talking to the landlord. First, do you know the advantages and disadvantages of a dome camera vs bullet camera? Second, do you know the advantages and disadvantages of fixed-position cameras instead of cameras that move? Do some research on security cameras and security systems before going to the warehouse so you know what questions you need to ask and understand the answers you’re given.
Is it a private space?
Commercial real estate can be competitive and hard to navigate. Companies like Warehouse Spaces allow you to go online and search for a warehouse for rent in your area so that you can get an idea of commercial real estate spaces available to you. You need to decide to go into it if you want a private space or renting space shared with other small businesses. There are pros and cons to each option, and it depends on what your business needs and what you can afford. Renting private space will cost more than renting shared space.
Is there room for growth?
Will there be room in the warehouse you are looking at to grow your business. You don’t want to rent a space that you will have to leave a year later. Choose a location that provides room or growth when you need it. If you are using distribution services, you need to ensure they have the physical room for growth and the workforce to increase capacity. You need to consider if you need office space, outdoor use, or a large area for working.
What are the long-term expenses?
The long-term expenses of buying a warehouse are tremendous, which is why you are looking at renting. Talk to your commercial real estate broker to understand the long-term costs of the spaces you want to rent. Long-term expenses may include changes in the market that increase rent, utilities, security costs, and other expenses. While some of these may be unpredictable, some aren’t, and the more information you have, the better prepared you will be to make an informed decision.
What services are provided?
As mentioned earlier, there is a difference between renting space and paying for logistics and distribution services. When talking to a warehouse owner, get detailed information about the services they provide. This will include talking about the security system and plan for the warehouse. For example, do they employ security guards? Do they upkeep the security cameras ensuring none are broken, or there are no blindspots? The contract agreement should detail all of these services. The contract should also include details about who is responsible for any losses or damages to your inventory.
Buying or renting warehouse space for your business is a big step, so you must put in the effort to make the best choice possible to get the best results you can.
