Distribution warehouse space is used for the storage of products sold by a company until those products are ready for distribution. When the time comes, they are distributed right from the warehouse. Almost anything can be stored in distribution warehouse space, from clothing and furniture to medical equipment and food. Refrigerated items can be stored before distribution as well, as many storage warehouses are equipped with air conditioning and refrigeration capabilities.
Any size business that sells products to their clients will generally look into leasing a warehouse if their current facility does not have enough, or any, storage space. Many businesses of all sizes take advantage of commercial leases for storage purposes. The number of distribution warehouse spaces that are occupied has increased by 86.2% since 2000. There are an estimated 166,907 people employed in the distribution warehouse industry to date.
There are several recommended steps to take when beginning the process of renting a warehouse. Determining warehouse space needs should be the first consideration. This information is necessary in order to find the correct amount of space and the right size of the property. Distribution warehouse space is considered industrial property which comes under three separate categories. The first category is warehouse space, the next is manufacturing space, and the third is called flex space which is used for both storage and manufacturing. Businesses will often take advantage of flex space if the facility their offices are in have little or no space for the manufacturing of their products. All of this factors into the size of the space the business will need.
It is estimated that ecommerce will expand through the next several years by about 10%. This will provide warehouse and distribution space owners ample opportunities to rent out their properties, thereby giving them the chance to expand their own businesses. Many businesses will begin their search online after they have decided what their monthly budget can handle, how much space they will need, and where they want their distribution warehouse space to be located. Another important consideration that needs to be addressed before beginning their property hunt is what features will be necessary to have there on the property. For instance, will loading docks be needed for incoming and outgoing trucks and other vehicles? Will onsite offices be needed? What height should the ceiling be? What kind of power supplies are necessary for the work that will be done on the property? What kind of flooring will be able to handle the equipment and products that will occupy the space?
After completing an online search, the business owner or representative should ideally contact a real estate professional who is experienced in commercial leasing. Typically, when it comes to commercial properties, the owner or the landlord will pay the realtor commission, so engaging a professional to walk the potential lessee through the rental process will not be an added expense. The real estate agent will contact owners on the client’s behalf and set up appointments to walk around the space. It is upon physical inspection that the client can really get a good idea of the size and potential of the property. A physical walk through arranged by the realtor will be done for every property of interest. The agent will be able to answer questions that will help the client in making a final decision about whether or not the property will actually fit all of their needs. In addition, the realtor sometimes has information about zoning issues and possible problems that could be caused by different chemicals or other materials that may be hazardous being used on the premises.
Keeping track of each property visited makes the final decision much easier. It is recommended that details be entered onto a spread sheet listing each property and its features, such as price, square footage, additional expenses, and the property’s features. Additionally, questions should always be asked. Details are important. For instance, is the existing lighting energy efficient, is there a sprinkler system, and what about parking? Another suggestion is to find three good contenders and then put in offers for lease. Comparisons of the terms of lease can be examined and a final decision made.
