- Misunderstanding Space Requirements
- Forgetting to Assess Location and Accessibility
- Not Prioritizing Security
- Ignoring Additional Amenities and Costs
- Lease Small Warehouse Space
- Frequently Asked Questions
Leasing warehouse space is an exciting step for any business, providing more storage and scalability. As you start your journey, you must be aware of the mistakes to avoid with warehouse leasing. By exploring these errors and equipping yourself with expert advice, you can avoid common pitfalls and find the right warehouse space for your needs.
As with any part of your business, signing a warehouse lease requires due diligence. Leasing functional storage space is an invaluable asset, and you can make it work to your advantage even more so by avoiding these mistakes when leasing warehouse space:
1. Misunderstanding Space Requirements
One of the most common warehouse lease mistakes is renting a space that is too small or too large for your storage or business requirements.
If you lease a warehouse that is too small, you risk inefficient inventory management and can easily end up with a disorganized, hazardous space as over-stack goods. A warehouse that is too large may not work to your benefit financially, as you end up paying for unused space.
Before agreeing to any contracts, you should have a clear understanding of your warehouse space requirements. For a good base figure, you can use a simple online calculator to determine your square footage requirements — but avoid relying on this number alone. Instead, take that base figure and ask yourself the following questions:
- Does the warehouse offer flexible lease terms that allow me to scale up or downsize as needed?
- Is my aim to grow my inventory quickly, making it better to lease more space?
- Is my inventory easily stackable, or do I need more space over height?
2. Forgetting to Assess Location and Accessibility
You may find an incredible deal on a warehouse lease, but it may not be all that beneficial to your business if the location does not align with your needs.
However, a well-placed business space provides several benefits:
- A warehouse closer to transportation hubs or suppliers can streamline supply chain logistics and reduce lead times.
- Reduced lead times and faster deliveries can directly enhance customer satisfaction.
- A convenient location can help attract potential employees, as their commute will be easier.
- The right location can be more accessible for potential partners or clients to visit your business space.
In addition to a strategic warehouse location, having 24/7 accessibility to your warehouse space also offers the same benefits of more streamlined and efficient operations. Access to your warehouse space on any day and at any time gives you the freedom to conduct business as needed — whether that is an early-morning meeting shipment.
3. Not Prioritizing Security
Security is an essential part of warehousing — but unfortunately, not all warehouse spaces offer a secure storage area. Your warehouse space is the heart of your operations — you store your inventory there, and for some businesses like e-commerce, you conduct the core of your operations from your warehouse space.
It can be tempting to consider a warehouse that offers tons of space for very low leasing fees, but it is not worth risking your inventory if the location is not secure. Instead, look for a warehouse facility that offers 24/7 security and has features such as being fully fenced and monitored.
4. Ignoring Additional Amenities and Potential Costs
While quality warehouse spaces with competitive leases are available, it’s important to know what is included in your warehouse lease so you are not surprised by unexpected costs. When discussing your warehouse lease, consider the following potential costs:
- Base rent
- Utilities
- Security costs
- Deposits
- Equipment usage fees
- Maintenance fees
An effective and beneficial way of mitigating potentially hidden costs is to explore warehouse leases that include a range of amenities in your base rent. At RISE Commercial District, we offer quality warehouse space for lease. Our turnkey facilities provide everything you need and more:
- We include electricity, water and trash in your base rent.
- You can stay connected with access to our free high-speed business Wi-Fi.
- Enjoy free access to our forklift to simplify and enhance your shipping and receiving.
- Access to shared spaces and amenities, including restrooms, conference rooms and a kitchen area.
- All-in, transparent pricing that covers management fees.
Contact RISE Commercial District to Lease Warehouse Space
While avoiding common mistakes with warehouse leasing can be challenging, there are ways you can make a warehouse lease work for your business to streamline and grow your operation. When you have a turnkey facility with comprehensive amenities and storage solutions, you can focus on what really matters for your business.
At RISE Commercial District, we provide cost-effective and versatile warehouse spaces and business storage solutions for various inventory and business needs. Our warehouses are spacious and secure, and our leases include free electricity, shipping and receiving services, video monitoring, and 24/7 access. We also have flexible leasing options.
With our warehouse solutions, you can enjoy greater peace of mind and the confidence of knowing that our turnkey facilities, all-inclusive pricing and property management services support your business’s daily needs. Contact us to explore our warehouse spaces and learn how you can use our facilities to operate and expand your business. You can also request a free quote today!
Frequently Asked Questions (FAQs)
What Are the Signs of a Quality Warehouse Lease?
The most important quality of a good warehouse lease is complete transparency. It should comprehensively cover everything included in your lease fees and detail which additional services or facilities are available and what those extra costs may be. A good lease agreement will also have flexible terms that allow you to scale up or down as needed.
Can a Warehouse Lease Agreement Be Flexible?
Yes! One of the most costly mistakes when leasing warehouse space is overlooking the terms and conditions, which may result in you being tied to a rigid contract that doesn’t allow your business to grow. With RISE Commercial District, you enjoy flexible leasing options, from month-to-month to one- to two-year terms.
What Are Some Red Flags to Look for in a Warehouse Lease?
If a warehouse lease is vague about the leasing terms and fees, lacks security, or lacks clarity about increases or any other aspects, it is best to walk away.
