There are a number of phases involved in construction today, and there is more to producing good today than simply creating them at the factory or mill. A manufacturer will also need somewhere to store all the inventory until it can be distributed to retailers, and this is a crucial middle step for any business owner to take care of. Warehouses can often be leased, and industrial rental warehouses, commercial warehousing, and commercial leases and more can all be done so that a factory has somewhere to ship and store its inventory and supplies. Leasing commercial property can be an excellent investment if done right, and there are many reasons for a company to choose leasing commercial property rather than purchase it. Leasing commercial property can, in fact, offer a number of advantages over choosing to buy a warehouse. What criteria should be considered for leasing commercial property? Will a warehouse’s location and features meet all of the manufacturer’s needs?
Warehousing is a large industry for companies to take part in, and leasing commercial property can easily allow a company to get involved in this and reap the benefits. Since the year 2000, to put it in perspective, the amount of all occupied distribution and warehousing space has grown 86.2%, showing just how much room is needed for commercial storage needs today. This has partly been fueled by the rise of e-commerce, which is when consumers purchase items online and get them shipped to their address. This will replace instances of going to a local retailer, meaning that even more warehouse and storage space is needed to match the growing popularity of e-commerce and shipping needs. In particular, e-commerce has been growing, and experts believe that it may grow at a compound annual average rate of about 10% over the next five years. This will create many new opportunities for owners and developers of warehouses and distribution spaces alike. Already, the American warehouse industry hires around 166,907 men and women in the leasing industry, and this figure may grow as the industry does. What should a client look for when planning on leasing commercial property?
The Right Warehouse for the Job
One major factor to consider is a central point in property rental or purchases: the location. Like a person buying a home on the real estate market, a company will look for the best possible location for new property, but rather than looking for nearby attractions and schools, a company needs a warehouse situated to a strategic location relative to its factories, retailers, and similar sites. This shortens the truck drives to and from the warehouse and other sites, and that in turn moves more product and saves on gas. But of course, this means that prime warehouse locations may be hotly contested, and a company may have to be prepared to compete with others to get desirable warehouse locations. These rental warehouses may also charge more than those in less desirable locations.
There is a particular reason to rent warehouse space instead of buy it: the flexibility of moving the company elsewhere and simply terminating the lease agreement when needed. A purchased warehouse will have to be sold, and this won’t always be easy. But a company that may soon move its location, or expand and need new storage sites, can easily end a lease agreement and seek a new one. Some companies that are fixed in location and size may prefer to buy warehouses, but this may in fact be the exception rather than the rule. Many other companies will instead prefer to rent such spaces for the reasons listed above.
A rented warehouse should not only be in a convenient location, but it should also have enough floor space and features necessary for the renter’s needs, not to mention how the warehouse should be in good condition. Some items, based on their size or nature, may need extra room or special accommodations. Cold items such as groceries, dry ice, or wine may need coolers or freezers, for example. And hazardous materials such as canisters of natural gas or oil, or liquid nitrogen, may need qualified crews and special equipment on site to handle these materials safely.