If you are looking to expand your business and are in need of additional warehouse space, there is much to consider. Obviously, location would be high on the list of priorities, and with easy access to main roads, your goods can be moved around with relative ease. Here are just a few of the factors to consider when looking for warehouse space, in no particular order.
Storage Capacity – It makes sense to think ahead when looking for warehouse space, as you do not want to have to relocate in a few years due to lack of space. Make sure that the facility is large enough to accommodate considerable expansion, with an area where you could erect another structure when the need arises. Good warehousing and distribution requires adequate space, and by having a large car park that can be downsized to accommodate another warehouse, any future development is assured.
Long Term Proposition – If you are to lease the land for your new warehouse facility, make sure that you have a long lease with the option to extend, while many companies prefer to purchase the land, as this is also an investment. Leasing means a complicated agreement, something you should have your lawyer look at, as you need to be sure that future growth will not be impeded by the terms and conditions of the lease.
Define Your Needs – If, for example, you have a booming online retail business and have large volumes of stock delivered and collected, then you will need the space for loading bays and trailer parking. You might hold stock that is seasonal, which can be stored in a remote part of the facility, which will keep the main area fluid. By defining your needs, you can ensure that the chosen facility is suitable, or you could do what many online retailers do, which is to outsource logistics to an established 3PL provider.
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Evaluate the Job Market – A small company might not have to concern themselves with staff procurement, but a medium to large business should take into account the local job market when looking at warehouse space. Talking to a local recruitment agency would certainly help, and you could use them when it comes to hiring time, allowing you to focus on other aspects of the business.
Cost – Of course, you should carry out a thorough costing, which would take into account land prices and all the costs associated with setting up the facility. Once you know the budget, you can move ahead with confidence, and you should calculate the running costs for the facility. Before making a final decision, it might be a good idea to look into outsourcing your warehouse needs, as this is often more cost-effective.
Finding suitable premises for warehouse space is not something to rush, and by factoring in all of the above, you can base your search criteria on your specific needs. Make contact with a few commercial real estate agents, who can search for the right location, and with their help, you should find the perfect place to build your new warehouse facility.
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