As the U.S. economy continues to improve, more businesses are looking for commercial warehousing locations to store their products. Both online and offline retailers will need a combined 25 million square meters of additional warehousing and distribution space in order to handle all the products they sell. As a result, the demand for storage space has an average annual growth rate exceeding 7%.
With the commercial warehouse industry on the rise, business owners now have more flexibility when determining warehouse space needs. However, business owners must remember that each property still has its own requirements or obligations, and not all warehouses are built the same. Here are a few things that a savvy business owner should check when finding a warehouse to rent.
Utilities
When looking at commercial warehouses, make sure to check whether or not the facilities have sufficient access to electrical power according to your company needs. If the building doesn’t have the right amperage and power, it can lead to blown transformers, or under powered machinery. Pay particular attention to the warehouse’s lighting, as electric lighting devours almost 40% of energy consumed by industry. Also, make sure the building is properly equipped with the right plumbing, heating, and cooling systems to ensure your employees can work comfortably.
Maintenance and Other Expenses
Just like a regular home lease, maintenance of the property needs to be worked out between the landlord and tenant. In most cases, tenants are responsible for taxes, insurance, and most repair costs. Talk to the owner of each building to get an idea of who takes care of what, and what kind of maintenance costs you should expect. That way you can get a better picture of what the location will end up costing you.
Expansion
While it can be hard to think of expansion when you haven’t even signed the lease, every good business owner knows you have to factor in your company growth when determining warehouse space needs. Ask the landlord at each location if there are any adjacent tenants to see what kind of expansion options are available to you.