Where do you start; you need to be clear on your space need, you are out of warehouse space, you need to expand but where do you start, that is the question every senior-level executive and business owner faces when confronted with this issue. The process can be complicated, time-consuming and although extremely important, most will procrastinate because there is really no time to dig into this. I have provided some recommendations that will make the process manageable for you, here you go;
a.) Is it temporary or longer term?
b.) Do you stay in your existing location and lease additional space in another building?
c.) How much space do you really need, this is determined by the amount of additional product you will have? Easiest way is to use pallet count, assume a typical pallet will take up 14 square feet of floor space. You will need to accommodate for isle way and maneuvering, to keep it simple add 20% to the total occupied by the pallets. You will need to assume stacking the pallets so that factors into your space assumption. Quick example, you will be receiving 3,000 typical size pallets (48” x 40” or 13 sf), you will stack pallets two high (one pallet ono the floor and second pallet on the floor pallet) so you will have 1,500 pallets on the floor within the warehouse this equates to (1,500 pallets X 13 sf = 19,500 sf) 19,500 sf and then add 20% for isle way and maneuvering space (19,500 sf X 20% = 3,900 sf) making a projected total size of 23,400+/- sf of warehouse space needed. This example is not intended to be exact but to give you a general idea of the warehouse space size range you need to consider.
d.) How long will you need the space?
e.) Geographic area that you want to be in.
These are critical first steps in this process, once you have answered the key questions noted above, you are now ready to see what is out there.
Most people will go the internet and do a google search, information is plentiful, and you will be able to get a general feel as to what is available for lease and the general lease rate. This is the easy part, understanding the information and what exactly the charges are for a warehouse lease is the hard part, it is at this point that you need guidance from a real estate professional. Contacting a commercial real estate broker is your next step, just having the information is not enough, you now need to get guidance on how to breakdown the information. A broker will walk you through the info, detail the specifications of the spaces available for lease, breakdown the charges for the lease and most importantly provide guidance on market conditions and anticipated terms and conditions for a lease. Further, the broker will assist in negotiating the lease terms, this is where you will benefit from their knowledge of the market, knowledge of the industrial property owners and other things that will influence the negotiated terms for the lease. This will allow you to obtain the very best lease terms by using the broker’s knowledge and experience, investment of your time well spent.
As is the case today, access to information is everywhere but it only info and it is important to plug in an experienced advisor who can navigate you through the process to find the right space obtaining the very best terms. This is our focus at LS Commercial Real Estate Services, we have helped our clients navigate this process successfully for 30 years, calls us and let us help you get the right space, location and the best lease terms.