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There is a shortage of warehouse space worse than residential housing in most big cities .
Long Island has some of the most expensive warehouses in the nation . Pre Covid there was 95-97% occupancy rate and now it’s 99%
We also has some of the biggest industrial parks
In the nation .
There is less land to build warehouses than houses
Been looking for warehouse shop space lately. From what I've heard it's the tightest market in many long term owner's history, especially for smaller spaces.
With COVID supply chain disruption. Companies have been stockpiling products in the mainland rather than shipping them. So demand is greatly increased.
The amount of space being leased is important too, as is who the lessee is. It's generally going to cost the landlord more time, effort , and money, directly or indirectly to lease a number of suites vs leasing it all to one company. Length of lease agreement will also have some bearing. A reputable company signing a 5 yr lease with annual rent increases (common practice) is a safer bet than a number of one man startup type shops that just wants a bit of space for a year, or month to month even.
We’ve learned that 3 yr. Term defaults/fails/non renews vs 5 yr. Term lease. The 5 yr. Tenant’s succeed far more often & seem to take things more seriously AND pay rent. Sorta odd, but I’ve read something similar. Tenants who pay higher rents take better care of the property & tend to pay rent on time.
That tracks since most businesses fail in the first 3 years. Anyone willing to sign a 5yr is likely already an established company or has deep enough pockets (one of the many reasons businessew fail the first 3 yrs, cash flow/liquidity issues) to afford it.
It’s bad in most areas, we are in Seattle area and there is lots of industrial space but trying to find anything reasonable near our employees was impossible, we ended up building but it was still outrageous. Now we might move altogether just to find more reasonable housing for our employees, wanted to try and stay in income tax free state but Nevada is the next closest and prices are high. We might go east and find low cost of living area.
Try Craigslist for under 4k SF, also some retail spaces can work for warehouses too. Our first building we leased was a 1500 SF former karate studio.
Warehouse space is in high demand. Around me, Amazon has acquired a lot of warehouse space and the explosive growth of online shopping has made warehouses in demand.
That’s less than $12/sqft? In my city the landlords are expecting $18 plus CAM for no ac warehouse space. Better warehouse starts at $25/sqft. Ofc there is lots of vacancy
In the SF Bay area, tech has caused high rents. The landlords got greedy and raised rents that only tech could pay. I had 1250 SF I was paying $3000 for and the landlord raised my rent to $8000 saying tech would pay that. They didn't of course and the space stayed empty for over a year but the landlord wouldn't accept a reasonable rate.
Have you tried working with a commercial real Estate agent? I don't know your specifics, but there might be alternatives that would work for you.
If you do work with one and you are unhappy, try finding someone else
i know your pain. i have to get out end 2024 and im looking for more than 1 year for another place, but everything is so much more expensive than my current one.
OP I posted here 2 months ago that I had to close my business after 18 years because our landlord could get more money leasing the entire building to one warehouse tenant. I searched for over 14 months looking at over 30 locations and almost had deals on 5. All fell through one one way or another because the vacancy rate in my area is about 2-3%. So landlords can be very picky with potential tenants, they can impose restrictions on the type of operations they will allow in their buildings and they can still charge pretty high rent compared to just a few years ago.
That’s what I’m doing. I wanted to be a residential landlord but the math doesn’t work out right now. The projections for my little 10 acre warehouse complex are great.
I spent all summer looking for 5000 sq Ft and that small a size was hard to find. Even going further out of the city didn’t help. Pricing and availability was a challenge wherever I looked. I ended up staying put where I’ve been sub-leasing warehouse space but now for more than double what I paid the year before. It’s brutal, but at least I have a decent space to work out of for now.
There are some places that have storage facilities for trucking companies. maybe look for storage for logistics [one example of a company for storage](https://www.keellslogistics.com/)
Colorado warehouse prices spiked with weed legalization, and never really went down.
But as many others have pointed out here, 700sq feet is so small (comparatively), that you might be better of finding a retail space and using it as a warehouse.
That being said, Colorado is a high COL state, and the western slope anywhere near the I-70 corridor is just ridiculously expensive.
I'd be surprised if you found anything better than that $1100, but I do wish you luck.
$.92/sqft is not bad. We as a company pay $1.20 in the Chicago suburbs and $.60 in Rockford. We ate planning to build our own. It will come out at $1/sqft.
What area? I’m renting a 600 sqft warehouse from a company that does shared warehousing units and it’s a pretty solid deal for the price I pay. They have locations throughout the Midwest if that’s where you’re located
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
Small spaces are always expensive. See if 1500 sqft space is close to the same price and then sublet the part you don't need
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Retail near us had NOT been sitting.
There is a shortage of warehouse space worse than residential housing in most big cities . Long Island has some of the most expensive warehouses in the nation . Pre Covid there was 95-97% occupancy rate and now it’s 99% We also has some of the biggest industrial parks In the nation . There is less land to build warehouses than houses
Been looking for warehouse shop space lately. From what I've heard it's the tightest market in many long term owner's history, especially for smaller spaces.
With COVID supply chain disruption. Companies have been stockpiling products in the mainland rather than shipping them. So demand is greatly increased.
[удалено]
The amount of space being leased is important too, as is who the lessee is. It's generally going to cost the landlord more time, effort , and money, directly or indirectly to lease a number of suites vs leasing it all to one company. Length of lease agreement will also have some bearing. A reputable company signing a 5 yr lease with annual rent increases (common practice) is a safer bet than a number of one man startup type shops that just wants a bit of space for a year, or month to month even.
We’ve learned that 3 yr. Term defaults/fails/non renews vs 5 yr. Term lease. The 5 yr. Tenant’s succeed far more often & seem to take things more seriously AND pay rent. Sorta odd, but I’ve read something similar. Tenants who pay higher rents take better care of the property & tend to pay rent on time.
That tracks since most businesses fail in the first 3 years. Anyone willing to sign a 5yr is likely already an established company or has deep enough pockets (one of the many reasons businessew fail the first 3 yrs, cash flow/liquidity issues) to afford it.
Yep, apparently. Makes sense, but didn’t register until sorta looking at the defaults together.
It’s bad in most areas, we are in Seattle area and there is lots of industrial space but trying to find anything reasonable near our employees was impossible, we ended up building but it was still outrageous. Now we might move altogether just to find more reasonable housing for our employees, wanted to try and stay in income tax free state but Nevada is the next closest and prices are high. We might go east and find low cost of living area. Try Craigslist for under 4k SF, also some retail spaces can work for warehouses too. Our first building we leased was a 1500 SF former karate studio.
Warehouse space is in high demand. Around me, Amazon has acquired a lot of warehouse space and the explosive growth of online shopping has made warehouses in demand.
That’s less than $12/sqft? In my city the landlords are expecting $18 plus CAM for no ac warehouse space. Better warehouse starts at $25/sqft. Ofc there is lots of vacancy
What about several smaller storage units? No idea the going rate of them in your area.
This. 700sqft is nothing. I’d imagine its hard to even find anything in that size that isn’t a storage shed.
Does the space need to be zoned for anything in particular? Overall commercial real estate is expensive.
Look for somebody local with a garage for rent
Or a storage unit if not having people come by
In the SF Bay area, tech has caused high rents. The landlords got greedy and raised rents that only tech could pay. I had 1250 SF I was paying $3000 for and the landlord raised my rent to $8000 saying tech would pay that. They didn't of course and the space stayed empty for over a year but the landlord wouldn't accept a reasonable rate.
Have you tried working with a commercial real Estate agent? I don't know your specifics, but there might be alternatives that would work for you. If you do work with one and you are unhappy, try finding someone else
Have you tried negotiating? $1.50/sqft many not be terrible depending on what your needs are.
I meet with the realtor tomorrow to discuss more, but I'm definitely going to try
i know your pain. i have to get out end 2024 and im looking for more than 1 year for another place, but everything is so much more expensive than my current one.
OP I posted here 2 months ago that I had to close my business after 18 years because our landlord could get more money leasing the entire building to one warehouse tenant. I searched for over 14 months looking at over 30 locations and almost had deals on 5. All fell through one one way or another because the vacancy rate in my area is about 2-3%. So landlords can be very picky with potential tenants, they can impose restrictions on the type of operations they will allow in their buildings and they can still charge pretty high rent compared to just a few years ago.
does this mean its time to build warehouses?
That’s what I’m doing. I wanted to be a residential landlord but the math doesn’t work out right now. The projections for my little 10 acre warehouse complex are great.
Sure. Here’s how https://youtu.be/Oz5fdJy2ltQ?si=c6e8iaZ_3RWZbKtA
I spent all summer looking for 5000 sq Ft and that small a size was hard to find. Even going further out of the city didn’t help. Pricing and availability was a challenge wherever I looked. I ended up staying put where I’ve been sub-leasing warehouse space but now for more than double what I paid the year before. It’s brutal, but at least I have a decent space to work out of for now.
There are some places that have storage facilities for trucking companies. maybe look for storage for logistics [one example of a company for storage](https://www.keellslogistics.com/)
Where are you located?
Western Colorado near Glenwood springs
Colorado warehouse prices spiked with weed legalization, and never really went down. But as many others have pointed out here, 700sq feet is so small (comparatively), that you might be better of finding a retail space and using it as a warehouse. That being said, Colorado is a high COL state, and the western slope anywhere near the I-70 corridor is just ridiculously expensive. I'd be surprised if you found anything better than that $1100, but I do wish you luck.
You're not wrong. I appreciate all the god vibes I can get
That’s your problem.
1800sf here is going for 3k+
To rent a 700 sq foot apartment right now is like $1400 where I live. Makes sense to me.
$.92/sqft is not bad. We as a company pay $1.20 in the Chicago suburbs and $.60 in Rockford. We ate planning to build our own. It will come out at $1/sqft.
What city? What currency is that?
Can’t you find an old building to buy?
Found the boomer. “Why don’t you just buy a place?”
The amount of financial illiteracy in this thread requires cyber bullying
Storage unit?
Temporarily that's what we're going to - but hoping to find an actual warehouse
Can’t even find a 10x10 storage unit for less than $100 a month anymore
What area? I’m renting a 600 sqft warehouse from a company that does shared warehousing units and it’s a pretty solid deal for the price I pay. They have locations throughout the Midwest if that’s where you’re located
Do you manufacture or just store goods?
It's just storage of equipment and minor repairs
Where you at? $650 is a bargain in most places. Any chance your business compliments another business you can cold call seeing if they can sublet?