Did you know that US inflation is currently at 7.7 percent? With prices nearing a forty-year high, many businesses are looking for ways to streamline their operations.
Running a successful business in today’s market means looking for expansion opportunities. And what better way to grow than warehouse space?
You may have also searched “warehouse for lease near me” out of curiosity, but which is the better idea for your business? Should you lease or buy? The rent vs buy a warehouse debate is worth examining beforehand.
Acquiring warehouse space is key for companies transporting and redistributing products. It allows you to control your product stock, inventory, and orders. But unfortunately, buying a warehouse can be an expensive investment in today’s market.
The average cost of warehouse space is about $7.50 per square foot. And if you’re a large business, you could spend close to a million dollars buying a warehouse. Leasing could be a great alternative for your business, so keep reading to learn more about the benefits of renting!
Expand Your Market Reach for Less
Growing your business can quickly become an expensive endeavor. But with the power of leasing warehouse space, you can conserve capital and continue to expand your company. You could even expand across the world without consuming capital.
You’ll have growth potential in new markets, you could diversify your assets, or also gain advantages over your competitors. By planning to expand using leasing, you’re setting your business up for success. Plus, you can better utilize your available funds.
More Efficient Delivery
Today’s customers expect impeccably fast service, meaning they want their deliveries faster than ever. Naturally, this can strain your business if you aren’t fully prepared. But leasing a warehouse allows you to meet speedy customer demands.
Warehouses are an integral part of your supply chain management. And they’re much more than simple storage structures. Leasing a warehouse will help you streamline purchase strategies. And you can cut delivery times for your customers while cutting down costs!
When compared to purchasing a warehouse, one of the key benefits of leasing is the added flexibility you receive. You only have to pay for the space and services you use, allowing you to adjust as you go. This can be highly beneficial in the current economy.
In addition to fighting inflation, you’ll be able to use this flexibility to adjust business strategies during holidays. The holiday season is often overwhelming for many businesses, and leasing extra warehouse space or services can greatly help.
Less Start-Up Time
If a company plans to build its own warehouse facilities, this will take a significant deal of time. According to the World Bank, the average time it takes to build a warehouse is around 80 days, and it could take up to a year for larger facilities.
This will be a huge burden on start-ups that need to focus attention on prospecting. But with a warehouse lease, you can simply search for a property and choose. This allows you to focus on business opportunities while instantly expanding your operations.
One of the most important perks of renting warehouse space is the overall reduction in cost. Compared to buying, leasing a warehouse requires remarkably less money upfront. In addition, there are no crippling down payments, which is great for start-up brands.
In addition, leasing a warehouse allows you to stretch expenses during the lease. And maintenance costs are often included along with your lease contract. So, any repairs that need to be carried out in your warehouse will not affect your finances.
Paperwork is a nightmare when attempting to construct a warehouse. You need to deal with construction permits, contracts, registration, and utility applications. This takes additional time when you could simply lease a warehouse and avoid these challenges.
Oftentimes, renting a warehouse covers the paperwork, documents, and applications. This means you won’t have to stress out about endless stacks of papers. And you can instead focus your precious time on additional ways to grow your business.
If you purchase a warehouse, you’ll only be able to record the purchase through depreciation costs. In real estate market terms, the IRS allows you to depreciate commercial buildings for 39 years and residential buildings for 27 years.
When leasing, your rental receipt is a fully tax-deductible expenditure. You can use these costs to save money on your company’s income taxes.
When purchasing a warehouse, you may encounter limitations, like sub-optimal space or insufficient features. If you build your own, you have more freedom, but at the expense of a much larger investment. A lease, however, can be the perfect in-between solution.
There are countless warehouse spaces for rent across the globe. You’ll have many options from location, layouts, and pricing. You’ll be able to compare warehouse facilities, target key features, and get exactly what you need.
Free Up Space
You may feel like your company headquarters needs to free up space. And leasing a warehouse is a practical way to relocate company materials without investing in a brand-new building. This can be a cost-efficient way to expand your company.
You won’t have to worry about not having enough room to get things done. And with a lease, you can save on additional expenses like insurance and property taxes.
Warehouse for Lease near Me
Now that you know some of the benefits of warehouses for lease, you can make a more informed decision for your company. Start searching Google today for warehouses for lease and check out some of our other great articles.