How to Cost to Rent a Warehouse

How to Cost to Rent a Warehouse

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When it comes to warehouse rent costs, there is a lot of variation. This is because the cost to rent a warehouse can be impacted by a variety of factors, including square footage and base rate. It can also be impacted by your brand’s unique operating expenses (like triple net lease or common area maintenance).

While it is possible to own rent warehouse space, this option is not ideal for most ecommerce brands. Purchasing warehouse space requires a high down payment and can be a burden on a business’s cash flow. Additionally, owning a warehouse space can come with expensive and time-consuming maintenance fees.

Renting a Warehouse: Your Guide to Finding and Securing the Perfect Space

Instead, leasing warehouse space is a much better option for most businesses. Not only does it allow companies to have more flexibility with their business, but it can also save money on down payments and maintenance fees.

When looking for warehouse spaces to rent, you should understand how the rental costs are calculated. Most landlords of industrial and warehouse space will require tenants to pay a base rate, plus NNN or CAM (which refers to property taxes, insurance, and other operating expenses that the tenant is responsible for). You will also need to budget for electricity use at the warehouse.

Lastly, when renting warehouse space, it’s important to determine the exact floor plan that you need for your company. This way, you can avoid paying for excess space or a location that is too far from your customers.

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