Business growth is always a good thing, even when it creates the need for expanding your facility. But business expansion often requires the purchase or rental of additional space to use as a warehouse.
Look at the benefits of leasing and purchasing
Business owners who are seeking warehouse space as part of their first major expansion must first decide whether they should lease or purchase commercial property. While the budget for expansion is likely to be the deciding factor in making a decision to lease or buy, business owners must also consider important factors like location, building size, and whether the warehouse they are considering will provide space to scale up as the business continues to grow.
If a warehouse is available for purchase that offers space that works both now and in the future, then buying can be a great choice. If however, the current expansion is expected to be temporary until a larger permanent business location can be found and developed, then leasing is often the better option.
Give consideration to condition and suitability
Warehouses that accomodate usage without making expensive structural changes or repairs are typically a much better value than those that cost less for the initial purchase but will require expensive changes to make the space work well for your needs.
Keeping these points in mind, business owners will want to consider several factors regarding the overall condition of the building and how it well it will suit their day-to-day warehousing needs. Some of the most critical factors to be considered include:
- whether there are any structural condition issues that could be expensive to address, such as roof leaks, faulty HVAC systems, or unsuitable access doors
- whether the location offers convenient proximity to the most commonly used shipping and delivery methods, including major highways, rail lines, sea or river ports, and air terminals
- whether there are additional benefits already in place, like suitable pallet racking or shelving, or workable dock designs
Security and the ability to protect your investment should also be considered when selecting a warehouse as part of expanding your business. Business owners will want to avoid warehouses located in high crime areas or those where topographical or exposure issues could put the facility at greater risk of damage from flooding, fire or vandalism.
Business owners entering the commercial real estate market to secure their first warehouse are sure to have questions during their search. Working closely with a reputable commercial real estate broker can help business owners get the information they need to make a great lease or purchase decision.